mr. powell and mr.share in written response back to what steps congress can take to ensure vital programs like the night now expired affordable connectivity program can foster greater competition in the wireless market into drive down prices while also ensuring providers have the resources necessary to deploy and maintain the networks that are necessary to provide the services. with that i yield back. >> we will do it. they give. >> thank you the gentlewoman yells back the chart recognize a representative from georgia mr. carter for five minutes ask your questions. >> thank you mr. chair congratulations you mr. chair on your chairmanship of this subcommittee it is a great subcommittee has served as vice chair for a while last session you got a great team to you surrounded yourself with good people. we appreciate it because it is extremely important. this area, as we all know is extremely important. mr. gillen went to start with you. you said we'd come as the u.s. are watching other countries. whether al

mr. powell, you and your college said around the time of the last meeting that your policy stance was restrictive. given financial and market developments since then, how has your confidence changed in an assessment that says interest rates are meaningfully restrictive? >> i don't think that my assessment has changed. we've got data and rates move up at the long end that could represent a tightening of financial conditions. i think if we look past year or so, we can see that the policy is restrictive if you look at the high rates on spending, for example, and housing and if you look at the achievement of our goal barriers, the economy move to 2% inflation and has moved largely to maximum employment. so, we literally look at the movement toward the goal variables to make that assessment. now, policy is meaningfully less restrictive before we began to cut and 100 basis points less restrictive and for that reason, we're going to be focusing on seeing real progress on inflation or trying with some weakness in the labor market before we consider making adjustments. >> if i could follow up, does the ec

mr. powell: three questions. i'm seeing it really as one question, though. i'm not going to have any response or comment whatsoever on what the president said. it's not appropriate for me to do so. the public should be confident that we will continue to do our work, as we always have, focusing on using our tools to achieve our goals and really keeping our heads down and doing our work, and that's how we best serve the public. i've had no contact. thanks. reporter: i'm from the "wall street journal." chair powell, you and several of your colleagues said at the last meeting that your policy stance was meaningfully restrictive. given economic and financial market developments since then, how has your confidence changed in an assessment that says interest rates are meaningfully restrictive? chair powell: i think my assessment has really changed. a couple of things have happened. we've gotten more strong data, but wee also seen rates move up at the long end, which could represent tightening in financial conditions. if we look back over the past year or so, we can

mr. powell over the course of the next several months, no question. the president has very little control over the overnight fed funds rate, very little control over the back end of the curve and at this point inflation is a paramount circumstance to be disturbed about. commodity prices are going from the lower left to the upper right. gold prices are making new all-time highs. crude oil prices have been stronger than i had thought likely and likely to remain strong despite the drill, baby, drill, so the fact that the president's going to be pushing on the overnight -- pushing the fed to cut rates i think is an ill advised move on his part. better for him to be silent and let the fed do its job. cheryl: well, let's take a look at crypto prices because they've been moving higher after president trump's executive order which aims to make the u.s. the crypto capital of the world by potentially developing a national stockpile. fox business' edward lawrence spoke with trump's ar and crypto czar david saks on why they ban agencies from developing central ba

mr. powell: bill curry told everyone the governor was a crook, we lost and i never trust you again when we hear you 80% of the questions we have to go around you whatever it costs. miss williamson: these would be really boring to the average american, they don't care, they need health care. it a safer environment. we need to be an incubator and i've talked to people and we need a leader who will use all this time. >> thank you, thank you, thank you. >> my uncle farms and voted for obama and then trump, he talked about driving his wife 50 miles for health care, he does not feel like anyone cares. that's why am running for the d&c. were going to fight for him. chair wycliffe: we love this party and we have a choice to make. getting hundreds of thousands of people involved. winning back trusts. i am asking for your vote because the country needs it now, thank you. >> thank you. we need to learn from our failures and have tough conversations, i'm not here to win a job. i am looking at them, the other side is going to target them in big trouble. >> i would like to urge the democratic party and

mr. powell's. >> expression from december. >> is unambiguously. >> still down. >> and i think they. >> still have. >> a disinflationary. >> scenario in their mind. >> and i think that is justified. >> so i think that's. >> what he. >> will do this week is basically say we completed the recalibration. >> it's over. >> it was 100. >> basis points. >> we got. >> from the wrong. >> neighborhood to. >> the right. >> neighborhood. >> we're at four and 3/8. and now we're going to sit here and we're going to try to find the right street to be on. so i think he will basically consolidate what he's already told us. and then i'm sure he's going to be asked a whole bunch of questions about president trump. but on the strict monetary policy side, i think it's pretty straightforward. >> and steve, while we actually might have had some interesting developments in terms of rent disinflation, i'm, you know, seeing the market talk about and that's a biggie, one of the most important components of inflation. but then you have this sticky and persistent problem with egg prices, which feel like the new gasoline

mr. powell may or. >> may not do. >> and we you know, becky was just mentioning in the last segment and. >> i think this may be the first. time we've had. >> this because he sort of. >> said he. >> wouldn't do this. he seems. >> to be considering the prospect of tariffs and. >> other. >> things even. >> before they happen. right. we've sort of gone. >> back and forth of, you. >> know. >> when are you when if you're the fed, are you supposed to consider things that haven't happened yet? >> how does. that play. >> into all of this. >> for you? >> so i think the fed is in a decent position because they were able to cut rates 100 basis points last year. they were able to reduce. >> the amount. >> of policy restrictiveness in. >> the economy. >> kind of take the edge off, keep things moving, keep the labor market strong. and now they're they're. >> really, i. >> think, very comfortable. staying on hold for an extended period of time so they can get. >> more information, whether it be. >> on tariffs, whether. >> it. >> be just. >> on the. >> standard flow. >> of economic data. >> so you have t

chair powell: it's going to get -- mr. trump: it's going to get done one way or the other. the end result is the same. jonathan: we will head to washington, d.c. and catch up with annmarie. live this morning, good morning. ♪ (wind, rain and rolling thunder) (♪♪) nobody's born with grit. british anncr: rose is really struggling. it's something you build over time. american anncr: that's twenty-one missed cuts in a row. (car trunk slammed shut) for eighty-nine years, morgan stanley has offered clients determination and forward thinking to create the future... crowd: stop it! ...only you can see. american anncr: rose, back in the winner's circle. (crowd cheers) (♪♪) jonathan: we are down by close to .2% on the s&p 500. the bond market, the 10 year 4.6729. on "surveillance" this morning, unified behind trump. mr. trump: we will get it done one way or the other. we talk about two, we talk about one, but it does not matter, the end result is the same. we will get something done, reducing tax, creating a lot of jobs. this is a really unified meeting. jonathan: the latest this morn

let's imagine a scenario that jay powell listens to trump and says mr. president, you are right.are cutting. we heard you. you can still have a scenario where policy gets tighter because the bond market does what it has been doing and that is sending long end yields up higher. perhaps he learned the lesson of the clinton administration when it is vigilantes who set policy and the fed only has so much control. michael: when the fed started the cutting cycle in september with 50 basis points, it was the first time the fed had started cutting with high yield spreads and the low levels that they were and financial conditions were easy. they were making history. they were cutting into low four's unemployment. now you are asking effectively the fed and the markets to embrace this we will run high fiscal concurrently with hot monetary regime. that is a recipe for all sorts of inflationary risk down the road. if trump was elected to make inflation lower again, that may be a recipe to actually make it higher again or at least to be perceived by the bond market. what is going to happen to

mr. trump wants is a blue collar bloom. he doesn't want the bond market to get in the way. he doesn't want j. powell to get in the way. he doesn't want chuck schumer to get in the way, he wants to hit the ground running, after a big recon bill to cut taxes open the fossil fuel spigot and choice the border, he wants apply collar boom -- apply a blue collar boom, he wants to say i'm keeping my promises, i'm saying, right now, the fed is making the promises look shaky. at least in the short irrun. >> it is this cut they did in september, very irresponsible that locked them into november and december cuts was terrible. it has put trump's ability to get his agenda through a little bit in danger. i will say he should keep pursuing he should not let what is happening in bond market stand in the way, people will say you can't cut taxes because of bond market vigilantes are coming in he needs to cut taxes 54% of americans personally expect trump to cut their taxes. if he disappointed the expectations, for tax cuts, i mean, it is game over rail for the trump administration. >> that is what i mentioned to speaker. hate to be on

mr. trump wants is a blue collar boom. he doesn't want the bond market to get in the way. he doesn't want jay powell to get in the way.t want chuck schumer to get in the way. and he wants to hit the ground running, start going after big reconciliation bill that would cut taxes, open up the fossil fuel spigots and close down the border. he wants a blue collar boom and wants to say to his new coalition of working folks, whatever color, say i am keeping my propses. i'm just saying right now -- promises and right now the fed is making those promises look a little shaky, in the shorter run. >> it is. this cut that they did in september, which was very irresponsible that locked them in the november and december cuts was a terrible idea. it has put trump's ability to get his agenda through a bit in danger, but i will say he should keep pursuing it and shouldn't let what's happening in the bond market stand in the way. there'll be people that say no, no, you can't cut taxes because of the bond market vigilantes are coming in. he needs to cut taxes and latest gallop poll shows 54% of americans personally expect trump to cut th

powell could come. out in five minutes and say, we. >> hear you loud and. >> clear, mr. president. we're lowering. >> rates by 50 basis points. >> and ten. >> year yields are still going to. >> go higher. >> and that's not. >> necessarily a good thing. >> yeah. in terms of his fight against inflation though it would be great to go to the american people and say your mortgage rates are coming down. right. the thing your. >> mortgage rate or not are. not tied to the. >> the front. right, right. no, i know and so my point is that he's trying to jawbone a part of the curve that he has no control over that we've actually seen go higher despite what the fed has done. so jerome powell. >> is not. >> the audience. is that what you're saying. no. >> yes. i'm not joking. >> yes i think exactly what you're saying. >> right. it's the consumer he wants to be able to say like we i am. trying to i'm demanding that your mortgage rates are going to come down. your credit card rates are going to come down. your borrowing rates overall are. yeah. i mean, listen. >> you. >> know. >> we've seen this be

mr. spiegeli knew he was. >> speaking at davos. >> today. >> because my cell phone. was blowing. up with people saying to. >> me. >> are you. >> seeing this? right? >> he's kind of threatened. >> the fed before, to which. >> jay powellis. demanding on a. >> public stage, which. >> he has no ability. to do you better lower. >> rates and. >> saying, hey, the rest of the world, you know. >> tell your central bankers to do the same. >> well, he also told opec to cut, cut oil prices. >> by the way. good on you. >> i mean, i got the same thing. i mean, it's one of those things that i think the group here at this table, we've been watching him talk nonsense for 18 months now. and so some of this stuff, it's like we're tired of it now. he goes to europe and speaks in front of business community that you and i talk to on occasion, but. >> has not. >> been really paying attention. >> over the last 18 months. >> and they say, oh my god, did you hear? and it's not just the fed stuff, it's it is the opec stuff, the stuff he's talking about tariffs. and then of course the tangential things he goes off on that, that people. >> were just. >> shocked about. and to me it was like, why are you surprised? the dangerous thing about this