ms. yellen: to me, the main thing that accommodate of monetary policy does is put people back to work. putting people back to work and a labor market that has a disproportionately favorable effect on vulnerable portions of our population, that is not something that increases income inequality. joe: joining us now from washington is tom palley, a senior economic policy adviser at the afl-cio and a research associate at the economic policy institute. and mike konczal, a fellow at the roosevelt institute. thank you for coming on. mike, were you happy with what the fed did today and do you think the fed is on the right track for ameliorating the inequality we see? mike: absolutely. i think today was the right call pit with inflation though and perhaps falling and wage pressures of beauty, as we saw from the census data that came out this week, wages have not grown, certainly not grown fast, either, there is no reason or ates one to put raised r the table now or even in the immediate near future. as we saw from the graphic from the bloomberg terminal, if you raise rates to really, you are g

ms. yellen said yesterday and raise this year, i don't think rates are going anywhere fast.to me, i think you have to think of a pretty defensive playbook continuing, a couple weeks ago we talked about utilities. it was kind of counterintuitive. that trade has worked okay. i think you want to be in defensive. u.s.-centric names like utilities. >> do you agree? >> yeah. think about it this way. in the past we used to see wagss where bad news, the market would sell off early, and what's happening now, even good news as the day digested, people are looking for excuses, it seems to me, to sell stocks. so i don't think you'd be a big buyer in general. >> what does it really matter what she says. it turns out their messaging is so confused that the market is -- is she going to raise? isn't she? basically that's part of the equation. the market doesn't like it when they're threatening to raise, if they're threatening not to raise. the tape has changed. >> what does history tell us, though, carter in terms of the sectors that perform best? >> well, sure, in a rising rate environment

ms. yellen said yesterday and raise this year i don't think rates are going anywhere fast and so to me i think you have to think of a pretty defensive playbook continuing. a couple weeks ago on the show we talked about utilities, it was counter intuitive that is correct trade has worked okay. i think you want to be in defensive u.s. centric names like utilities. >> i think you do want to be in a defensive spot. in the past we used to see situations where bad news the market would sell off early, you would see the futures. what's happening now even good news it seems like we seem weaker. people are looking for excuse toss sell stock. >> the truth is what does it matter what she says. it turns out their messaging is so confused that the market is she going to raise, isn't she going to raise? that's not a part of the equation right now. the market doesn't like this t. when they're threatening to raise, doesn't like it if they're threatening not to raise. the tape has changed. >> what does history tell us in terms of the sector that perform best? >> in a rising rate environment you don't wan

ms. yellen: i would like to underscore the appropriate path 's conditional on participant individual predictions. our actual policy actions over on how economic conditions evolve, which is uncertain. michael: yellen did suggest a move in october is possible but they made no provision for a news conference after the meeting. michael mckee, bloomberg, washington. guy: what is happening now. the markets, awaiting this decision from the fomc. stateside?ed julie has the details. julie: u.s. stocks were relatively unchanged until the fed came out and said there would be no increase in interest rates. we saw quitehe -- a bit of volatility. 193dow rising as much as points and then falling as much as 100. the nasdaq finishing higher. investors trying to figure out what all of this means and trying to parse through the janet yellen press conference. stocks climbed to the highs of the day as she gave her prepared statement and then fell as she answered questions, including saying a rate increase is on the table for october. we saw those gyrations across asset classes. the two-year note was also an injured

ms. janet yellen is central banker to the world. torsten slok is from deutsche bank.e is back from washington. what was the mood yesterday? i would discomfort, say, from janet yellen, trying to explain why the fed has not moved without worrying the markets. you are worried that she will get what futures are doing throughout the world today, and it does not look like she succeeded. you said goldilocks continues. what do you mean by that? hasten: the environment created a trading regime that if interest rates are zero, it is about the carriage rate and the spread of -- your goldilocks scenario -- does that mean bubble? torsten: it means that valuations are going up not so much because of the p/e ratio going well, but because people do not want to have fixed incomes. it is lifting asset valuations not because so much the cash flow of companies is improving, but because portfolio managers are saying what else should i do? brendan: what do you take it away from negative dot guy? is that a realistic suggestion or just a joke among central bankers? torsten: that is a very eu

ms. yellen: good afternoon, as you know from our policy statement released a short time ago, the federal open market committee reaffirms the current % rate for the federal funds rate. since the committee met in july, the pace of job gains has been solid. the unemployment rate has declined an overall labor market conditions have continued to improve. inflation has continued to run below our objective reflecting declines in energy prices. we expect the downward pressure on inflation from these factors will fade over time but recent global economic and financial developments are likely to put further downward pressure on inflation in the near term. these developments may also restrain u.s. activity somewhat but have not led to a significant change in the committee's outlook in the u.s. economy. the committee continues to anticipate that the first increase in the federal funds when itl be appropriate is seeing further improvement in the labor market and is reasonably confident that inflation will move back to its 2% objective over the medium-term. it remains the case that the committee will

ms. yellen can -- or the fed can raise rates hit. they're painted into a corner and they don't want to come out -- we all talked about the dual mandate. they have 17 mandates and he can't juggle them all. >> why is that a negative for the stock market? every time they didn't raise rates the markets would rally. >> i think they missed the window of opportunity before china imploded -- in fact, imploded and was in a process of bottoming they should have raised rates. they should have raised rates when they saw china market outperforming. they had a window of opportunity to do that. right now the hands are tied. >> there is this growing chatter of a global capacity overhang. we if we don't see is that happening they may not have a hard landing, but their economic date at that points may not be guaranteed positive results going forward. >> there is a wide belief that we could go back to the august 25th lows and maybe even the october 15th lows that jeff was talking about. would that be healthy? would that be troubling? what would you guy

ms. yellen feigned interest rate increases like late later this year and of course gary, if nothing else changes. does this mean the markets tantrum is over? >> look, the only reason she is talking rate hikes right now is because 0% markets went down. she can talk all she wants. i think she's following markets at this point in time and i find it amazing they are thinking about raising rates on the bear market and around the globe. the economic statisticare heading south. this whole data dependent they. there is no rate hike this year. >> there is no rate hike no matter what she released that would've just told you about. secondarily she seems to be following the market more than leading. >> there is a distortion of opinion within the fed. there is an expectation that ranges from 25 basis point so it tells you internally they are trying to get a handle on what their thoughts are. and they are trying to incorporate at the margin actions both in decisions and gnp numbers. i don't think looking at the numbers and the kind of data that would drive this decision is a bad decision. that make pe

ms. yellen: the federal open market committee reaffirms the current target range for the federal funds ratence the committee met in july, the pace of gains has been solid. the unemployment rate has declined. overall, labor market conditions have continued to improve. inflation, however, has continued to run below our objective. partly reflecting declines in energy and import prices. where we still expect the downward pressure on these factors will fade over time, recent developments are likely to put further downward pressure on inflation in the near-term. the outlook abroad of years to have become more uncertain of late, and heightened concerns about growth in china and other emerging market economies have led to notable volatility in financial markets. developments since our july meeting including the drop in equity prices, the further appreciation of the dollar, and a widening in risk spreads, have tightened overall financial conditions to some extent. the committee anticipates that inflation will remain quite low in the coming months. fade,se temporary effects and importantly as the lab

ms. yellen could do us all a favor and come out and say, or just come out and do it before the meeting., here's what we're doing and it's done. >> before we leave chipotle behind here, take a look at a couple of ads accusing the company of saying it's all natural but not being anywhere near healthy. and i can tell you stories about friends of mine, oh, it's delicious, you put on a few pounds. is there a problem for the fast casual industry if people have started to realize, hey, just because it's, you know, a new chain that doesn't have to post calories doesn't mean i should be going here all the time. >> and these guys do post the calories, of course, it's law in new york. but they do it, i believe, in their restaurants in chicago and across the country. so -- >> do you eat at chipotle? >> i don't. >> do you, walter? >> i would, i just don't. >> i think it'll have an affect. i'm going, hey, i didn't really focus on this because i thought it was kind of healthy. >> we're fans of chipotle around here. >> there's a coffee cup there, and we each get to do a little thing. and i did einstein

ms. yellen decided not to do anything, dow down 155 points, nasdaq 42 points off, and s&p 500 looking tooints about now. >>> welcome back again, everybody. today's conversation for the next 20 years dives into the fu future of health care, soaring costs, consolidatioconsolidatio. we have a trio of ceos joining us for a prognosis of the industry. mark bertolini joined in 2003, one of the greatest leaders named by "fortune", and has over 46 million companies, and george bart joined the giant in 2008, the company ranked no. 26 on fortune 500, and this year, it's acquired ten companies, and knox singleton, the ceo of inova health systems, network of hospitals, outpatient services, and assisted care centers services 2 million people a year, and knox was inducted into the washington business hall of fame in 2009. gentlemen, welcome to all of you. it's really great to have you here. plenty of problems that are facing the health care industry right know, but, mark, you used a very interesting status tists. our and health care system wasting $800 billion a year. we think we are better in doing th

if you look at the euro-dollar play, and this is just part of yellen didwhat ms. a little more pressure on the european economy. upr-over-year, exports were to the united states, in large part because he has seen the big moves and the big weakening in the euro. if you look at the export story, which is one way to look at the european economy, because there is not a whole lot of growth internally, china looks slow. if you shifted more to the borrowing costs story, whether or not you see borrowing costs in your states, you may be slightly more positive. either way, it looks like this could make mario draghi's task more challenging, but a little easier. he has to expand quantitive easing and add a few more zeros to whatever they are thinking of buying. jonathan: brian, i shifted back to the effect argument. the challenges that kuroda faces, does this increase the likelihood they move next month? brian: yes. i think it does a couple things. i would start with the 2% inflation target that mr. kuroda has been talking about for the past couple years. that is supposed to

is withs is -- nicholas us today and he spends days lori on the hot miss yellen -- worrying on behalf of ms liz is on top of what the markets are doing. odds of weare the will see something economically negative out of china? bad enough that it will derail plan?ds net: i think that is less than likely. we certainly see a slowdown in growth and i don't think the government is panicking. they have tools to offset that. it will be an increase in cyclical support through the economy into next year and the pboc has been on talk of monetary easing and i think i continues. china's economy is slowing down but we don't see that sharp this juncture. there are also a lot of regions where the growth rates are dramatically different, not to mention the difference between manufacturing part of the economy and more consumer parts. are those dispersions getting wider? i think that is mostly right and a negative story for commodity producers into the china story into the old model of growth that the government is trying to move away from. that is a reflection of economically obvious they face. mike: 10 :00

yellen stick it to mario draghi? is the euro going to get stronger? ms.: it is a function not just of currency but also fiscal policy within each of these countries. the united states is not alone in following austere policy when he economies are growing below potential. that has been the situation injure. what we have seen in europe and other countries is economic reform has not taken place. that is one of the issues in china. as an emerging economy, they could focus on a lot of public spending infrastructure and keeping costs down so they could export a lot. now they are trying to make the transition to a more robust domestic economy and running into trouble. it is not just currency. it is the combination of other policies that governments need to be looking at. tom: what is your enthusiasm for a portfolio of quality american blue-chip stocks and multinationals? ms. cohen: our appetite is high. we think that is the way to be positioned. analysts also believe if you want to on fixed income, it should be on the higher-quality side. tom: dividend growth a

rallied with chairman janet yellen or triple digit gains after she's had an interest rate increases likely by the end of the year. european markets trading while today. triple digit msand a 1.5% when the markets open. a rate increase will calm by year-end. >> fomc participants including myself are currently anticipate achieving these conditions will likely happen in greece later this year. followed by a gradual pace of tightening thereafter. but if the economy surprises us, our judgment is about appropriate. monetary policy will of course change. maria: the world coming to the united states. pope francis will address in new york city while in washington at the nation's capitol while threatening the president of china with president obama on climate controls this morning. fox news confirmed president obama will meet with russian president vladimir putin on the sidelines of the general assembly happening monday. among the topics, russia's increased presence in syria and provoking violence in ukraine. white hoficials saying newton was desperate for the meeting. apple's newest iphone on sale. analysts at the company to sell 12 to 13 million iphone success this weekend.