mr. powell: ok. so today i'm here to talk about decisions and also discussions about decisions that haven't been made. so we're talking about the latter thing, discussions. i can't get ahead of where decisions are. the committee -- what we're looking to do is create a whole plan that will bring us to our goal, our longer-run goal, which is a balance sheet no larger than it needs to be for us to efficiently conduct monetary policy. it doesn't put our goals at risk. there are a lot of pieces to that and we have learned over time when making these plans, like the original plan, it's good to take your time and let the best ideas rise to the top and stand the test of time and argument and move when you are comfortable with what you've got and you can communicate clearly. i don't want to get ahead of that process today. so we have discussed -- there are a number of pieces to that puzzle. there are several different pieces to them and i'm pleased with the progress whenever we have made. and the piece you me

mr. powell has to say. >> we've seen pessimism in economic surveys. we saw blockbuster jobs report this morning. you have been optimistic about the economy. is that changing? what is your outlook for the

mr powell was asked if he'd met the president yet — amid reports that mr trump had considered firingnts and fed chairs do happen. and they've happened, i think... and i cant‘t think of any fed chairs who didn't eventually meet with the president. but, again, nothing has been scheduled and i don't really have anything to report on that. if the president asked you to resign, would you do it? no. joining me now is our business reporter kim gittleson. a very emphatic no to president trump asking him to resign, and whether he would come up what was the reaction on the markets to that kind of statement? investors like to see a more assertive fed chair saying his independent and will make the decisions he will make based on economic fundamentals. we have not heard much comment from the federal reserve in the wake of harry criticism from president trump for the bank's decision to raise interest rates in december. honestly letting that made investors happiest of all were comments earlier in the interview when mr powell suggested the fed could be patient with its rate increases in 2019. many i

interesting because, as we've seen over the past few months, president trump has really lashed out at mr powell the federal reserve's position to raise interest rates. he raised for a fourth time in december. mr trump said this is the reason have seen all of this stock market turmoil. what was interesting about jerome powell there was that he reassured investors by saying he's not planning on leaving any time soon. it's unclear if president trump has the ability to fire him. and earlier in the interview, he said inflation was more muted than the central bank had been expecting. as a result, they could be patient with a rate increases. many investors interpreted that to mean that, even though the fed had indicated it might raise rates another two times in 2019, maybe that wouldn't be set in stone, given a lot of the global headwinds we have been seeing. as we have been saying, jerome powell says he is prepared to adjust interest rates. we did see some harsh criticism in the past from president trump on the us fed. is that any connection there? it's interesting, some people could say he is capitu

mr. powell intimated on friday, the adjusted monetary base, the assets will not be run off.hat will be the next important statement. it will be interesting to see what the chinese do tonight. whether they announce a large purchase of american agriculture. that will be another major circumstance. can we actually end this foolishness in washington and get the government back to work. charles: erin, catalyst? >> i, you know, i think what you have china trade is still hanging over. it is still causing a lot of fears. anytime that is really big in the headlines that is when you see the swoons. we have to get that resolved and pushed behind us to refocus on building the u.s. economy. charles: brian? >> i think stocks are positioned for negative outcome in china. we had tariff tantrum in 2018. charles: worst case is built in. >> built n we would look for a positive surprise. markets would lift. charles: i love today the ism services number, like the manufacturing number, missed the but the reaction was completely different. if you dig in there, prices paid dropped to an 18-month lo

mr powell was asked if he'd met the president yet — amid reports that mr trump had considered firing between president and the fed chairs to happen, and they have happened, i cannot think of any fed chairs who did not meet with the president but nothing has been scheduled and i have nothing to report. if the president asked you to resign, would you do it? no. joining me now is our business reporter kim gittleson. so kim, was mr powell's firm rejection of resigning the thing that's cheered investors or did he have more to say? short and sweet, that was one thing, suggesting that jay powell felt he was perfectly empowered to feel independent in his role as the head of the us central bank, but what they really liked is what he said earlier, when he talked about whether or not financial market conditions were deteriorating, whether he was worried about the state of the economy, he remained bullish on what was happening, he said that the fed could be patient in deciding whether or not to raise interest rates in 2019. many thought that seem to be a step that from the fed's decision to poss

mr. powell: if we reached a different conclusion, we would not hesitate to make a change.f any aspect of normalization was part of the problem, we would not hesitate to make a change. jonathan: what do you think of that? a total 180 from the chairman. bob: i think it's appropriate. it might be three weeks delayed from what would have been optimal delivery time. but nonetheless, it appears the markets have been well ahead of the fed and the fed is catching up. i think a deceleration in growth is baked in the cake. we were already going to decelerate from passing the peak fiscal impulse in the fourth quarter, early part of the seer, as well as monetary tightening over the last two years, and in december, the fed delivered a more hawkish expectation than the market was assuming and it reinforced the risk off, the elevated volatility for a while, and now it appears they are coming around. jonathan: there is a lot of people very unimpressed with the communication of the chairman of the federal reserve. it has been flip-flop after flip-flop. why haven't we heard more from this c

mr. powell's overall thrust.o wind us back from this extraordinary experiment and get us back to normal times, but now is probably not the time for the kind of hike that he wanted. >> can i go back to trump for just a second? neil: sure. >> as we were talking about trump and how he's attaching himself to the market, he's working so much as an analyst and not really being a leader on this. i think one thing that's going to come back to bite him is that with the economic growth that we're seeing, with these good indicators, he should be doing something with it. he should go to capitol hill, he should talk to mitch mcconnell and actually try to go for some kind of infrastructure bill. he's not actually doing anything positive with the growth that we're seeing. i think that's the reason he's going to face some more trouble later this year and early next year. neil: we'll see. the president just tweeted something about you. erin mcpike is a loser. no, i'm kidding. i had you going, didn't i? thank you both very much. a

mr powell was asked if he'd met the president yet — amid reports that mr trump had considered firingetings between president still happen. and i don't think that any fee chairs that didn't eventually meet with the president. but nothing has been scheduled and i don't really have anything to report on that. if the president asked you to resign would you do that? no. let's get some of the day's other news. britain's foreign secretary, jeremy hunt, says iran has acted shamefully by not giving medical care to the jailed british—iranian woman, nazanin zaghari—ratcliffe. he said iranian officials had given him a clear assurance that mrs zaghari—ratcliffe would be treated for her complex health problems, but this hasn't happened. she was jailed in 2016 for five years for spying — an allegation she denies. police in germany have arrested three german men in connection with a bomb attack on an office of the right wing populist alternative for germany party in its heartland in the east of the country. prosecutors said they suspected a political motive. the united nations has criticised the tri

mr. powell, larry.one for you, delegation to china next week, progress being made on a deal, can we infer that? >> well, of course let's see how they do. i know the president is cautiously optimistic. he had another talk with president xi of china. these are all good signs. we have a deputy delegation flying over this weekend. they will be there all next week as we said. they will look at commodities, agricultural, industrial goods. we would like frankly to see a regime of zero tariffs, zero non-tariff barriers and an end to all the state-run subsidies. these are central planning policies that are not working. the chinese economy is not in good shape, crucially, crucially, we have got to see a change in chinese law regarding the theft of intellectual property, regarding ownership where american companies must be permitted to own their companies, and so that would end the forced transfer of technology. and we also want to see a shift in this whole cyberspace, cyber hacking. it is becoming very commonplac

for the fed is at the same for all of us they don't know what's going to happen you notice that mr powell said we're in a good place we have a strong economy at the same time he then says literally five seconds later that it looks like the economy is going to slow down well if you just listen to him the honest it thing to say is if it's going to slow down which nearly everybody believes then the only really interesting question is how much it slows down and the very risk that it could be significant and lord knows back in two thousand and eight it was the second worst slowdown in capitalism's history well then it's a very dangerous to raise interest rates if there's even the chance of an economic slowdown because a rising interest rate would make any slowdown that much worse so all this is a nice soft statement but it doesn't tell you very much except that we are in very uncertain times and that itself is a problem yeah i mean you're so right you go back to two thousand and eight i mean the fed and everybody else treasury secretary even they acted like it was a lightning bolt of shock to

mr. powell and his colleagues, signaling they may be less inclined now to hike rates in 2019.hange anything for bank indonesia in anyway? in recent weeks you talked about how the key rate here has neared its peak. how firm is that view for you? we continue our monetary economy,th the global [indiscernible] before we are forecasting the fed will increase three times this year. when we looking at the latest two, it is increasing by times this year. with the lower possibility of a hike. i think this will put our policy rate [indiscernible] that is the forward guidance we are giving to the market. >> a cut? >> it is difficult to say at the moment. our framework of monetary policy is sound, consistent, and to be transparent. rishaad: think of indonesia governor perry warjiyo speaking exclusively to bloomberg's yvonne man. at the central bank's annual investment forum in jakarta. david: in india markets opening up. -- canow companies get find their way out of protectionist policies that seem to dominate the world order right now. our interview with him from davos is next. this is bl

mr. powell learned in the past few months or so to take his cues much more from the markets and maybe be more cautious about it? >> i think learned a lesson of bringing the market along with it, which is the way that -- let's go back. patience, which is what he cites over and over again. each member of the fed has used that word. they go out with a specific phrase or a word that's the word now. >> many of them i asked a friend of the family if they had bought a house in this summer vacation area the woman said, i have not convinced nate that's what he wants to do yet. this is a bit the way -- >> i understand that >> the fed needs to treat the market the fed hasn't convinced the market that raising rates is the thing it wants to do the last two economic cycles did not end because of cost pressures. it did not happen. in fact, wages were stagnant in 2000, 2001 wages were very stagnant in the '05, '06 the fed in neither case was trying to head off wage growth inflation. this time it's much the same we do not have a problem with people not having the money to pay their employees. half the st

mr. powell said i like the management routine, with the stock trading 16.5 times earnings, it's a buy as for united reynolds, this is a jay powell stock for attornce. if you think the fed is gunning for more unemployment, this will deck united reynolds united reynolds is a pure play on construction, including oil and gas construction the stock has been vulnerable to more rate hikes and production cuts my recommendation, if you think jay powell pays attention to the consequences of his actions as they impact your net worth, i would buy some united reynolds let's just say we could be a big winner in the meantime, the ceo will no doubt be buying stock right alongside you. that's what he's been doing. maybe he doesn't have a powell complex. best for last, c.a.g this is a food company that got had. sometimes you just get had when it overpaid for pinnacle, one of the most disastrous acquisitions in recent history. the positive they now own the frozen food aisle, a favorite among my ly millennials. six months from now, i think you can turn things around i'm betting patience will be rewarded wit

mr. powell again today 12:45 at the economic club in d.c.e sounded a hot better on friday and i know you've pointed that out, much more constructive for the markets, gets the patience thing they're all in wait and see mode now. are we going to get that message reinforced powell's got another shot today. >> travel and leisure is down badly, airlines bad, retail bad, housing bad, chemicals bad, plastic bad, semiconductors bad, hiring good. it is a little bit difficult for jay. i want to give him some leeway but he should have checked in with some companies that would have told you that we're not getting big orders, reorders from the macy's and the kohl's but he didn't do that. of course we're going to hear that's not the case. had you made the call, you would have realized this was happening. that's what i've been so angry about. perturbed. >> you've been saying that for a long time. i don't believe that mr. powell's specifically been defending himself against your charges but they have made the point in many times of talking about all the dif

mr. powell says about the reaction. tom: that will be interesting to see. shutdown fix, i can't imagine the present avoiding the frenzy of happy valley in switzerland. th will continue here withuhs -- we will continue here with thushka and james. coming up, an eventful conversation. a former all-american lineman want to shut down the san francisco 49ers. bloomberg. ♪ francine: this is "bloomberg surveillance." as we have been discussing, a budweiser brewer is considering an initial public offering of its asia operations. its shares jumped the most since 2015. thushka and james are still with us. when you see a headline like that across the bloomberg terminal that imbev is considering ipo-ing it asian operations, what does that tell you? is that mean they can unlock more value because asian operations are invaluable? james: i see a company responding to his on problems, having built up a lot of debt and clearly needing asset cells in order to better position -- sales in order to better position themselves. it is abundantly clear that the story of a greater p

mr. powell by twitter, he's been very critical in interviews with reuters.ressure on the independent central bank. when he asked about that today, he said no. that's a pretty quick and direct rebuke to the president. although people here have disputed whether or not president trump thinks he could fire jerome powell, the treasury secretary. he said that's not something that president trump believes he could do. >> trace: it is up for debate. jeff mason, good to see you. thank you. >> you too. >> trace: and updating fox's top story. the show down over the partial government shutdown. lawmakers meeting with president trump began as the shut down hits the two week mark. kristina partsinevelos live on capitol hill. >> lawmakers are working very hard to evercome this shut down impass. if anything, a lot of gop members are struggling to focus on what the president wants funding the wall and to address the problems with the growing consequences of this government shut down on the economy. here at capitol hill, you had one lawmakers that would be representative gara

mr. powell on the same day, you will get a blast of data, jobs reports out of the states, unemployment at8 year low is what we expect. where does the fed in 2019? money markets have next the idea of a rate hike this year, but is it that simple? lena komileva, managing partner/chief economist, g plus economics is my guest post. the market has used that phrase, nixed any rate hikes in 2019? would you concur? doubt there is confusion about what the fed will do next, i am not sure the fed knows what they will do next. it is clear there is a fedonnection in how the sees the outlook for 2019, and the market risk assessment function. how that gets resolved, whether there were calls the fundamentals are strong, and for some scope of risk-taking in the weeks ahead will prevail, or whether we will see the fed converge market fundamentals. at the least, the lessons of the last quarter, we have seen contractually the rating of global risk assets that has been led by the u.s. the twin repricing of market risk and management through the normalizing as the fed balance sheet remove liquidity insuran

mr. powell throw in the stock's 3.1% yield.asuries going down, and interest rate, and its fabulous balance sheet and this is exactly the kind of stock you want to own if you're concerned about a slowing economy. after today's terrific jobs number, well, i don't know probably be less concerned, but you could at least understand why if you're jay powell, you say uh-oh, p&g next up, well, another uh-oh i think merck can repeat its 8% gain going forward why? because its main competitor, bristol myers. just shelled out $74 million to by celgene, and they wouldn't have done something so radical if merck weren't winning head to head trials against them yut cetruda is taking names. you'll hear it's got a rock solid balance sheet, and like proctor & gamble, it's a fabulous slowdown stock. you have my blessing to buy this in weakness even though we have the powell pow rally mcdonald's up in the fourth quarter. i'm loving it. i believe mcdonald's is about to become a terrific technology company now that they can pick and choose what works

mr. powell has a backward view of thinking that it's inevitable and have higher inflation when you have atronger growth. 7.4% growth in 1984 and inflation was coming down dramatically. you can have strong growth and lower inflation. >> problem with the fed is there worried about asset inflation so if you consistently look at their minutes or listen to speeches there worried as it bubbles because with bond buying program they financially suppress the little lady in the marketplace and so an equal and opposite reaction happens. increased volatility and traded above 20 on the vicks and that's what happens in the marketplace. david: gang, leave it at that. thank you much. national security, despite acknowledging productive meeting with immigrant leaders president trump says he is prepared for the shutdown to carry on or months, possibly years, if the deal can be reached on the board of all. a live report from capital in moments. ♪ i am a family man. i am a techie dad. i believe the best technology should feel effortless. like magic. at comcast, it's my job to develop, apps and tools that simp

mr. powell's comments about either the u.s. economy or the chinese economy that stood out that alarmed you >> not really, tyler i think it was pretty much consensus point of view. i think it would be pretty hard to find somebody out there right now who says the chinese economy isn't slowing down i think it would be hard to find somebody right now that says the u.s. economy is healthy but uncertain. i think that's basically what he said but the important thing when people listen to the fed chairman and look at fed forecasts, it's not what's the forecast i think that's fruitless exercise what you have to do is compare what they're saying to what most economists are saying and i think right now, they're squarely in the scoconsensus. >> thank you, we appreciate it >> thank you >>> and new at 2:00, our elan moi is getting out of the meeting with mike pence. >> he's been meeting with republican lawmakers trying to bolster support for the president's shutdown strategy. he sat down with a small group of us and said the president still

mr. powell said yesterday and based on the slightly rosier picture.conomic cycle could extend as a consequence of the current set of circumstances? >> so i -- we thought that the cycle was fine where the latest stage obviously of that business cycle, but as we know, the cycle, they don't die of old age. you need to have built excesses. historically, you have -- you have built an excess, exuberance for the cycle to burst we did not think we had done that this time around. what we are having now is -- you may or may not have a recession in one year, two years time. at one point we will, but not to say that it's happening right now, and surely, we're not seeing signs of that, and the fed has indicated that they're very flexible and willing to support the cycle. >> do you not think that markets are just getting too addicted to the central bank because the only reason stock markets can rally is when the fed turns dovish now we know china are thinking of a stimulus. they're not going to hike any time soon. they're thinking of extending the electr the liquid

mr. powell saying -- i think to your point he read from basically a script and said what the market wanted to hear. oo i think in the back of his head he's going to do what he thinks is right that might be bad for markets but good in the long run i don't think it will be make central banks more dovish but that's probably my hope more than my feel. >>> let's bring in the man who moves the markets, marko kolanovic. marko, great to have you back. great to see you, happy new year so the firm stand is 3100 by year ending. >> it's actually 3,000. >> 3,000 by year ending. >> yeah. >> so what brings us there and what do you think has changed? towards the end of last year in the fall, you were bullish going into year endi and it did not pa out. >> what happened in the q4 was a series of shocks that were delivered to the market. first in october we had the derisking of a system manager. things stabilized in november and we had the g-20 progress and some progress also with the fed, which we thought should be enough actually to push the market higher. what did happen in december was really a retail mu

mr. powell has a backward view thinking it is inevitable that you will have hiring flesh -- inflation and stronger growth 7.4% growth in 1984 and inflation was coming down dramatically. so you can have strong growth and lower inflation. but the problem with the fed comeau worried about inflation so if you consistently look at their minutes or listen to their speech, they are worried about asset bubbles. the bottom program financially suppressed volatility in the marketplace. so what happens? equal and opposite reaction. we have increased volatility and trade above 20 on the vix. that is what is happening in the marketplace. >> david: thank you very much come a matter of national security despite acknowledging productive meeting with democrat leaders. president trump says he has prepared for the shutdown to carry on for months, possibly years if a deal can't be reached on the border wall. how close both sides cotton? a live report from capitol hill in moments i'm ken jacobus and i switched to the spark cash card from capital one. i earn unlimited 2% cash back on everything i buy. and last

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mr. powell?ey have turned more dovish since the end of last year whether they are going to turn more dovish from now i think is more questionable. that's why everyone will be watching with a great care to see what he says this week it's clear that the quite dramatic volatility we saw in the second half of last year did have an impact on their thinking and on their public statements and also the fact that turning of the qe reduction to a 50 billion in october did seem to coincide with that volatility i think must have had some impact on the edge of their thinking. >> and certainly something to bear in mind in this earnings week as well the tone that comes out of the feds. >> i think so. >> lucy, thank you for joining us today on "street signs. lucy mcdonald, managing director and cio. >>> also coming up on the show, president trump reopens the possibility of declaring a national emergency over border security more when we come back stay with us 300 miles an hour, that's where i feel normal. having

mr. powell started out fine by repeating, the fed has the ability to be patient on rates it is amazing how much traction you get by simply repeating yourself we did start to come off a bit when he talked about the balance sheet being smaller. a couple other things happened at the same time we had a 30-year auction i talked to rick about it. he saw 30-year yields move up. this happened at the exact time the market was moving down then president trump came out and said he wouldn't to go davos. to the extent there were people that thought perhaps the president would meet with chinese officials on trade over there, there were some vague hopes on that. i agree we came off the highs. but there's a little stew of things that happened and i think we need to look at each individually >> let's get out to rick who has more on that 30-year option. >> the 30-year wasn't terrific i didn't like the indirects being so spongy. in that way it was similar to the ten-year the soft indirects on yesterday's ten year weren't as strong the package is done. sometimes you get a little move and it isn't out of the o

mr. powell i wish i owned anything as hard as the s&p 500 owns the fed at this point that's just a reality. so they're going to doing this dance where they're data dependent. you know what it is? whether the s&p is above the 200-day moving average. >> they are emphasizing financial conditions financial conditions is another way of saying is the stock market going up or down. that triggers bank lending here's the thing use the term growth scare, i don't know that the powell put is necessarily something that alleviates the growth scare. talk about home prices because in my view, they are more influential on consumer sentiment and have a bigger multiplier effect on spending in america amongst most people than the stock market does. we got a print this morning on pending home sales this is homes that will sign a contract within two months and close. pending home sales down almost 10% in december. that's not sequential, that's year over year versus last december that's dramatic. >> hold on 12 straight months of declining pending home sales and if you want to look at starts and if you want to lo

mr. powell is not acknowledging that he is forced to. it has switched from data dependent.ive-year rate traits material above the futures rate, it will still stay market dependent. ofra: what are the prospects the markets at any point in 2019 actually pricing in more hikes than 0%, or getting closer to the dot plot? how could that actually happen? wouter: i think we need a feedback loop from the fed being on pause and having an impact on markets, and also having a positive impact in the economy raising confidence. that they will not make a mistake, that sectors like housing will get a per pre--- will get a reprieve. if that changes, i think the fed could create the breathing room it needs to start hiking again at the end of 2019. but that is as far ad we think it will go. think it will be the second half of the year that the fed will change its policy. it might be able to start hiking again, but we would need a six pause at least in a reprieve from market pressures and on the economy to get there. nejra: if you listen to jerome powell and also richard claret, the message yo

mr. powell: one of the things that the actors in these campaigns want to do is to remain hidden, remain secret. those that seek to use social media to amplify their influence and project more power and capability than they might actually possess. the islamic state is an excellent example. there's a second type of campaign, kind of subterranean manipulation, which takes place out of sight of social media users, but they see the effects. examples here are the intelligence services of the russian federation. bit more about a the research method? peter: i think one of the things that drove us to this project, and we have been at it for about five years, to give you the sense of the scale of us. what drove us is that strangely for a space about connection and networks, is that there was a massive amount of stove piping going on. you have geographic stove piping. the people that were interested in whether it was interested in in terms of researching, in terms of being the journalist writing on it, to the actual people fighting in it on topics like isis and the middle east, were unfamiliar with and o

mr. powell -- there are two issues here. one, he could signal that maybe the data is rolling over and we can afford to pause early this year. expect that but it would be nice to hear it from the horse's mouth. the other issue is the balance sheet. you could maybe level some accusation that the fed hasn't been particularly effective in communicating their view, i think their view is the correct one that the balance sheet, so-called quantitative tightening, does not have that many macro implications. marketser or for worse, believe that they do and the fed has not done a particularly effective job of explaining why that is not a big deal. peggy, how difficult is jay powell's job today? he could turn too fast or too slow. inwas saying to rate hikes 2019, you cannot go all the way to, we are going to cut, but if he doesn't move at all how will the remount gets -- how will the markets react to that? peggy: he has to react to the data. it is on the upside, he will have to be tighter in terms of doing the cut. investors i talked to

mr. powell: good afternoon, everyone. and welcome. i'll start with a recap of our discussions, including our assessment of the outlook for the economy and the judgments we made about our interest rate policy and our balance sheet. i will cover the decisions we made today, as well as our ongoing discussions of matters on which we expect to make decisions in coming meetings.

mr. powell and his colleagues signaling they might be less inclined to hike rates in 2019.e anything for bank indonesia in any way? in recent weeks you have talked about how the key rate here has near its peak right now. how firm is that view? perry: we continue to update our monetary policy with global economy as well as how normalization of the fed will be developing over the year. before we are forecasting the fed will increase three times this year but when we are looking at the later fomc, [indiscernible] increasing by two times this year, one time this year, even though we know markets are forecasting only one time. but to be cautious we are putting two times. yvonne: so is the run rate for bank of indonesia hikes over? perry: of course we will continue to update that. in our latest increase in november, basically real already [indiscernible] the price and the increase [indiscernible] in december and march. i think we already [indiscernible] and for looking when we make the decision after increased our policy rates in november. of know lower possibility hiking, you kn

mr. powell has the unfortunate duty to unwind and get back to normal as much as possible and very importantlyand that's the tension what do you do now for the short term, and what do you do for the long term in terms of having had a little prophylactic medicine here in order to cut rates to ease a downturn which i think the markets should be looking at longer term, but they are not. they are looking hat short-term gratification, and this was precisely what we worried about at the table in my step years there, particularly when we went through the programs. >> fascinating to hear you talk about that are i wonder, you know, some have said that powell's mission, whether he likes it or not, is going to be to volckerize the fed and wean us from our dependins on asset prize should that be his mission >> well, i think definitely his mission should be try to achieve some normality here. there's a question of how far you go, and how rapidly you go, and, yeah, we created an artificial construct we drove rates to zero we hammered down the yield curve. we poured on a lot to make sure that everybody under

mr. powell and to the chinese delegation on trade to maybe keep the rally going on rates, we want to hearsaid the fed would be patient in december. we want to see that incorporated into the commentary. on the balance sheet, everybody is obsessed with the balance sheet. unwinding the balance sheet. commentary that it is not on auto pilot, something like that is what everybody wants to hear. finally, hey, is the ipo market finally reopen remember all the craziness with the government being closed? i think we might have an ipo pricing on nasdaq tonight. we're waiting to make this clear. but right now, looks like new fortress energy will price tonight. will try to price tonight. 20 million shares of $15 prior price talk, 22 the numbers here, the important thing is, hey, we might get an ipo trading over on the nasdaq tomorrow looks like s.e.c. really is sincere about getting that ipo business up and running. off the highs for the day. 253 points back to you. >> thanks, bob bob pisani covering so many other things not to belabor at&t, but you may have noticed the discrepancy in one slide we sai

mr. powell, the fed chair, might just sit down for a lunch or a meeting face to face do you think that will happen? do you think that's a good idea? >> i think i have a better guess at what they might serve at the meeting, at that lurncheon i think it will happen and it probably should happen it's been a little complicated by the president, who sort of has decided he wants to take on the federal reserve. >> it wouldn't be unprecedented fundament if it did? >> other presidents and other chairmen have met. it would not be unprecedented. it wouldn't be unusual for it to happen i don't see a reason why it couldn't. >> what do you think should the president and the fed chair, who the president said -- how are the markets going to do? they're going to do fine once we get the trade thing settled down and we need a little help from the fed? >> that's inappropriate. for the president and the chairman of the fed to meet, that's, again, not unpres den unprecedented. but for the president to put pressure on the fed, that's not necessary and inappropriate. it's not the president's purview, that's why th

mr. powell said health department be patient that did it. the stock market took off. jay fowl is doing what president trump wanted him to do. lay off the rate hikes, so was the fed truly independent? investors don't care. the stock market took off. now this morning, it is all about the big tech comeback. look at facebook, record profits and -- there are now 2 7 billion monthly users that stock is taken off. look at apple, a huge gain yesterday, and it is holding those gains again today in premarket action. big tech comeback. microsoft, however, trading lower. a slight miss as they say -- slightly less revenue slightly less profit than analyst expected and down it goes about 2%. tesla they've got a problem. another top executive is leaving down it goes three and a half percent. overall after a 434 point gain which put dow back above 25,000 stockses this morning are lower. down about 90 on the dow but look at the nasdaq help by technology, it will show a small gain. president trump tweeting about china trade, he says tacks are going well. but there will be no final agre

mr. powell said health department be patient that did it. the stock market took off.dent? investors don't care.

mr. powell, he kind of prides himself on being a plain-spoken communicator but his communications confuseeople in the market. he's really had to do a lot of corrections over the last few weeks. maria: yep. >> that raised questions about him. the other thing about -- the market wants to see the fed on an easier path. okay. but the underlying message there is that this economy can't sustain very high rates. so it doesn't send a really encouraging message about economic growth and the economic outlook when we see that the fed is starting to recognize it just can't sustain a tighter monetary policy. maria: we're getting the news from the companies themselves, the fourth quarter numbers coming out. verizon reported mixed earnings. they beat on earnings, missed on revenue. >> caterpillar. maria: technology reporting late today, apple. we heard from apple already. facebook, amazon, all reporting this week, microsoft. it's going to be a big week for technology and of course you mentioned caterpillar. that was the big one yesterday that set the tone for the markets because ca caterpillar a great i

mr. rubenstein: ok. what does fomc stand for? chair powell: federal open market committee. ed by the senate, confirmed by the senate nominated by the president, confirmed by the senate. mr. rubenstein: have you thought of a better acronym? chair powell: we may have to hire a branding consultant and get some better thinking on that but for us, it is a very basic acronym. [laughter] yesterday, the fed released the minutes of your last fomc meeting. you release your minutes not the day after the meeting. why don't you release your minutes the day after a meeting? chair powell: we release a statement which summarizes a decision and the language is carefully constructed. we go back and read the transcript carefully, we cumulate the perspectives offered by 17 different members, and it takes sort of three weeks to go through that process, and republish the minutes. we used to publish them with a couple of months delay and now it is three weeks. david: in those in meeting minutes, it said whether you should increase fed funds rate or not, but the decision was unanimous. was the unit

what do you make of that kind of shift, this is a trifecta of frederick shift, powell, -- mester.d mrificant change in fed garments -- guidance in december. more recently i think we have had a clear statement from powell saying the stance of u.s. monetary policy has changed. bloombergntly set on that we would get one rate increase this year, i think that is still the case. i do not believe we will get three or four rate increases and the rally in the two-year treasury is looking a bit overextended. there was that move from 280 plus down to where we are at the two-year, probably it is anchored there for the moment. nejra: basically we had powell pointing to 2016 when he spoke on friday. in 2016, the fed could scale back its tightening plan to help car markets. if you look at this chart here, you can see the comparison at the amount of fed tightening price into the u.s. curve for the next will months. what can the fed do from here because they will not cut, are they? bob: it is way too early to say they will cut. the question is to what extent do they raise rates? my view has been they

mrs. yellen: i agree with chair powell's assessment that he offered up. the data suggests we have a consumeronomy, spending is two thirds of all the spending in the economy. with strong job growth and income growth. having risen oil prices down, putting money in consumers pockets. i think consumer spending, and said, is the he spending over christmas was strong. that is a strong base for the economy next year. i don't think that expansions just die of old age. two things usually in them. one is financial imbalances, and fed, and is the usually when the fed ends a recession, in expansion, it is because inflation has gotten out of control. and the fed needs to tighten to bring it down. very welle fed is now beingoned with inflation low, and inflation dynamics being favorable in the sense that the linkage -- i believe thee is a linkage between labor market and product markets and inflation. the strength of that linkage is not very great. we have a relatively flat phillips curve, another way of putting that. addition, inflation expectations seem well anchored

the fed needs to be more patient as chairman powell has said. tom: mr.here after h or a terrific year of investment performance. a lot of other people underperformed and ray dalio did well. china seems to be the big thing. it is our single best chart which we did for simon kennedy, it is logged gdp for china. the answer is simple, 6.6% annual. right now, it is back to 1990 levels. it is not the same as it was 20 years ago, is it? wanted toand they pull leverage out of the economy and they have done that. the problem is, they were not banking on the trade war. that makes it harder for the chinese to do that juggling act between pulling leverage out and protecting the downside. we have seen this direct feed of stimulus. it suggests the big worry is that that slow down does get out of hand. , he jacob frenkel with us circled back to trade. what is the distinction bloomberg news sees about trade right now? there is this cover of this magazine, what is the distinction now? to go back tod the story we wrote yesterday, this idea that for all the talk havetruce

mr. draghi and january 30 with chairman powell is nominal gdp just is not there. 10 years, whether it is the federal reserve, the ecb, the bank of japan or the chinese for that matter. what i see is policy exhausted. the federal reserve can back away but how much can they do besides just backing away? tom: the interview today, the akk is going to take over for merkel. francine: -- tom: she internation have the potential for a 2.5% topline gdp. the elite in davos cannot work with that. jonathan: did you hear the prime minister early on? this is not a region that wants to -- anytime soon. [indiscernible] jonathan: this is not a region that wants to do fiscal stimulus anytime soon. draghi has to analogy was wrong in q3. he says the weakness -- he said though weakness in -- he said the weakness in q3 would be tempered. francine: he was the anti-austerity guy. jonathan: he wants governments to do structural reforms, etc.. we have been told again and again that these central banks are data dependent. what is happening in europe right now? how does manchester united lose

mr trump said they were ‘productive‘. us stock markets have climbed after better than expected jobs figures and assurances from the us central bank chairman, jerome powellw jones closed on friday up by more than 3%. police in india say a third woman has defied traditionalists and entered a hindu temple in the southern state of kerala, after two others set foot inside on wednesday. the shrine has become the focus of a prolonged showdown, after india's supreme court overturned a ban on women entering the temple. now on bbc news: alastair leithead takes the first part of an epicjourney from the atlantic ocean to the far reaches of the congo river. one of the world ‘s great rivers flows from the heart of africa. it cuts through the largest rainforest outside the amazon. with wildlife found nowhere else on earth. it is amazing. the democratic republic of congo is a vast, beautiful but tormented place. this country is rich, but its people are among the world's poorest. this centuries, its resources have been plundered and it has been ravaged by war. from here you cannot find anybody. they stopped going, all of them, they disappear soon. the violence goes on a

chairman powell, please make a note of it, mr. at any cost, now data deposiendent because he started doing homework started calling companies. >> only started recently >> he had odels. models are never wrong they're models >> models like on howie mandel's show, you mean >> very funny. >> thank you >> good one. >> "saturday night live". >> yes >> future of comedy. downgrade of altria over at morgan stanley. >> that is like 6% decline they overpaid for juul i was in san francisco occasionally met a person that didn't get a million dollars for juul. >> that was one of the most amazing deals of the year. $4.8 billion for 35% if i remember correctly. >> incredible deal. >> now you have the fda commissioner apparently suggesting that if they continue to market the ecigarettes to young people, he can envision an outright ban. >> they're very angry that i made a few jokes about how they appeal to high schoolers well, they do. hello. >> what amazed me about the deal was, they have an $86 billion market cap themselves now, there is was no p