new york federal reserve, what happened? >> they asked me to come to the new york fed and the fall of 2003 and my kids were in school in washington i was going to move them in the school year so i rented an apartment and my first night in new york i went to buy some stuff for breakfast. i was carded. [laughter] that was a somewhat awkward again in a so yeah. >> let's talk about your time is present at the new york fed. you were writing a book called leaning against the wind and talking about your fears such as the shadow banking system and all the stuff going on outside the regulated banking system in your work to clean up the george's market. your critics aren't having it after the release of the transcripts from the 2000 dollars he meetings. the wall street journal branded you as one of its losers in part because you said in early 2008 in the financial markets i think it's true there are some sign that the process of repair is starting and bear stearns collapsed a few weeks later. talk about this. were you really leaning against the wind? >> i try to talk openly and honestly about the stuff we messed and why it was so inadequat

some guy or former treasury secretary has published his book explaining his actions while the new york fed and treasury did his arguments convince you he says he is blameless and banks needed to be rescued whatever the cost he also said he's not friends with them which was kind of interesting considering he is and he wasn't the head of the new york fed that he was before the crisis happened he was friends with the group people citi group with robert rubin who he had been working for under the clinton administration big corps he came the head of the new york fed while robert rubin was a vice chairman at citi group trying to solve the citigroup problem before everyone knew about it back in two thousand and seven so his books interesting because the indicates he had no knowledge of anything that could possibly have been happening and that somehow he was this hero because at the darkest hour he and sort of all the other. people who were in the elite forces who were able to get together and buy and trade and get cheap money and sort out assets which is still going on today he was someone who ha

who he had been working for under the clinton administration big corps he came the head of the new york fed while robert rubin was a vice chairman at citi group trying to solve the citigroup problem before everyone knew about it back in two thousand and seven so his books interesting because indicates he had no knowledge of anything that could possibly have been happening and that somehow he was this hero because at the darkest hour he and sort of all the other. people who were in the elite forces who were able to get together and buy and trade and get cheap money and sort out assets which is still going on today he was someone who had to do what he had to do so positions himself a sort of this like super hero who had no choice and we the little people including apparently you and i and anyone else who noticed this going through along the way don't have the understanding the comfort henschel to know how difficult it is in that particular position to make a decision and he did the best he had to do and he wouldn't do anything different but the result of course is that we have this cost money

>> well, i was, they asked me to come to the new york fed in the fall of 2003, and my kids were in schooland washington that i wasn't going to move them into squares i went and rented an apartment in new york. my first night in new york i went to buy some stuff for breakfast i bought a sixpack of beer and i was carded. [laughter] that was a somewhat awkward beginning. >> so let's talk about your time as president of the new config. you talk about your growing fears about some things, about what became known as the shadow banking system, all the stuff going outside of reagan at banking system and i to work to clean up the derivatives market. your critics are not having a. after release of the federal reserve transcript from 2008 policy meeting, "the wall street journal" branded you as one of the losers. in part because you si said in early 2008 in the financial markets i think it's true that there are some sign of the process of repairs is starting and bear stearns collapsed a few weeks later. to talk about this. were you really leaning against the winds picked i try to talk openly about t

put your tent in front of the new york fed.hey failed. >> how do you get justice when it was a mistake and not a crime? >> well, there's no -- we can't -- you can't always get justice. that's the problem. what you need to do is try to prevent the harm. that's my focus. and you can. what's maddening about this situation is how we're accepting this, as if it's some kind of natural disaster that happened to us and we have to live with it, and that's the image they try to portray, that the earth just opened and we had to send the ambulances. that's the way they tell it. that's the wrong way to view it. >> when, in fact, preventive medicine, if the regulators had been doing this job, would have avoided this calamity. >> they averted attention from their own failure before and since. that's what's so outrageous about this, is that you can make mistakes, but you must learn, and they did not, and they're still failing. >> i'm persuaded by your book. you and martin helwig argue that banks should risk more of their own money and less of

each of its regional banks they're overwhelmingly dominated by the mega bankers especially the new york fed so be great to have some of these commune there are more than seven thousand or nearly seven thousand community banks in the country be great to see them represented but why not also have public banking represented we have the state of north dakota that has a very well run public bank state bank so why don't we think outside the box a little bit more when we're looking at putting people into the fed you've argued that we need to create something called the people's faith what i mean by that. well in a sense i mean i you know after i made up the term i thought it's kind of a redundancy because people also forget it's so dominated by banking and corporate interest people forget that the fed is already the people's fed it was created by congress it's a government creation it is not the banks doing it for each other it's something that the people created in order to get rid of financial instability blues and later to boost employment and it's something you know we were having these terrib

from us germany has the world's second largest supply of gold and much of it is housed in the new york fed in lower manhattan they've been trying to get it back for years so what about having slimy conniving wall street bankers who don't mind foreclosing on millions of americans to make a few bucks something about having those dude's just feet from your massive gold supply made them a little anxious i can't put my finger on what it was but so germany said we'd like our gold back please and we said a funny thing about your gold into. spoil assaf to die days yeah so we're going to throw it out and the german was like no no it doesn't and we were like no no it doesn't but. if we give you a gold back it's been in new york for like seventy years the culture shock of going back to berlin will kill it all right so and then the germans said well fine at least let us see it and then we said shorts or shorts or no problem here's a bar of gold and your gold looks just like that. you would think at this point germany would start going think you'd like to tell us. don't make us go all die hard three on

yes so this confuses a lot of people i think that if you if you read some of the new york fed's research over the last few years the you know kind of get a better grasp of this and what the fed is doing right now is they're paying interest on excess reserves and what that allows the fed to do is to maintain a substantial balance sheet. but still hike rates if they need to so instead of you know we hear a lot about the fed funds rate and really the the fed funds rate in the current environment with the with the fed's balance sheet the size it is it's sort of a non issue when the fed decides to raise rates if they want to raise interest rates tomorrow to let's say one percent what they would actually do is they would start bank paying banks one percent on their excess reserves and that would be a defacto fed funds rate increase to one percent so the fed still has the mechanisms to raise rates and tighten the economy if they want to. so you know it would be a mistake to confuse the size of the fed's balance sheet with the inability to tighten the fed doesn't have to reduce its balance sheet

bill dudley, the new york fed head said i'm a little concerned about the markets because there's complacency. the head of the new york fed actually said the low volatility may be making people take too much risk. i don't necessarily agree with that, but i do think the fed bears some responsibility for this weird system that we've got right now. very low volatility with the markets at a new high. doesn't usually happen. >> echos of 2007. >> yeah. >> we'll leave it there for now, guys. won't be the last time we'll discuss it. >> can you imagine paying more than $1 million in property taxes for your home. that's what the ceo softbank pays in the state of california and robert frank will join me to break down the top property taxpayers in the new york area. the numbers are pretty shocking and tune into "closing bell" tomorrow for a fashion doubleheader. we'll be joined exclusively by the chief executive of gucci during the 3:00 hour and i'll sit down with the authors of the new book, "the glitter " we'll be right back. i always say be the man with the plan but with less energy, moodiness, and a

the new york fed empire manufacturing index rose this month and hit a four-year high.everal reports that industrial production rose 610th of a percent in may and confidence rose more than expected this month. we are going to hear what's really happening in the housing market from the ground up with homebuilder ceo a little later on during this hour. i'm going to ask him with regards to the comments about the housing bubble and the fact that she is worried about a potential housing but all that happy now. also, the increasing tension in the middle east continues to weigh on oil today. prices per barrel now as you can see in your screen we are sitting at 16.73. we lost 18 today. member context gain more than 4% last year-- last week, excusing. the crisis interacted to teary deteriorate over the weekend and today the islamic slate-- state of iraq with extremist militants taking another key city. the us government announced moving some personnel out of the usmc in baghdad. let's bring up your barns from washington. you have been watching the details and comments from the p

a new york fed study fiepdz both an associate and four-year degrees remain solid investments with an annualized return on investment of about 15%. holders of a degree in a technical field are receiving bigger paychecks. i think they looked at one year out, guys, if you were one year out, you had a better shot at having a higher starting salary if you had gone through one of these technical schools. >> we're doing a disrupter thing where -- >> no, i claimed higher education. >> you can do that. >> what is it going to look like? >> i think it's going to look very expensive. >> you need to know how to do something, not just how the read. the whole thing is -- what is your degree again? no one. english or something? >> journalist, communications. >> that's what people do when they want to party for four years. >> they used to call it commies, communications. >> that's what you turn into. the hard core liberal degree where people get out and owe $80,000 and it's like what can you do? they go i can write a hell of a book report. it's a problem. i wonder what it's going to look like. you're

new york stock exchange. we'll get hills thoughts on the fed and the markets. [ both ] when we arrived at our hotel in new yorkibly... careful... careless... with our bags. and the room they gave us -- it was... beautiful. a broom closet. but the best part but the worst part was the shower. my wife drying herself with the... egyptian cotton towels... shower curtain... defined that whole vacation for her. don't just visit new york. visit tripadvisor new york. [ male announcer ] with millions of reviews, a visit to tripadvisor makes any destination better. so what i'm saying is, people like options. [ male announcer ] with millions of reviews, when you take geico, you can call them anytime you feel like saving money. it don't matter, day or night. use your computer, your smartphone, your tablet, whatever. the point is, you have options. oh, how convenient. hey. crab cakes, what are you looking at? geico. fifteen minutes could save you fifteen percent or more on car insurance. >>> all right. let's get down to the new york stock exchange, cramer joins us now. we talked about inflation. you were one of the people i

dudley of them new york fed, do they border on a responsibility to going on this course or would morgangest they need to take a different tack, and soon? >> you want to separate policy affirmation from policy forecast. there is still resource slack in the economy, inflation is picking up a but still below their goal. they have room to run. >> you have read these histories far more than i have. milton friedman and anna sc hwartz. ben bernanke e. they all say the same thing, central banks are behind the eight ball. was janet yellen behind the eight ball yesterday? any policy is asymmetric and it goes up a lot more slowly than it goes down. we used to call it going up by the escalator and going down by the elevator. but itings are planned is easy to convince yourself to start a little late and go a little slow. you want to make sure the expansionist sustained momentum. early on you don't worry that much about rising wage and costs. it is creating disposable income that makes consumption gains more widespread. inflation isn't such a bad thing if you are below role -- below goal. central ban

new york fed president william dudley told reporters in november of last year -- quote -- "people can have trouble with the student loan debt burden, unable to buy cars, unable to buy homes, end quote. so i'm pleased to see that president obama has taken action to ease the burden of federal student loan debt for some struggling borrowers. i am pleased to see also that the administration is taking critical steps to ensure that service members are getting the benefits they have earned through their service to our country, but it is very clear that much more needs to be done. that's why this bill before us is so important. it will provide relief to student borrowers who took out loans several years ago only to see the rates for student loans have since gone down. some senators may remember that this issue presented itself last year, so as the chair of the -- of the authorizing committee, i worked with the members on both sides of the aisle and in the administration, we had meetings in the white house, to pass the bipartisan student loan certainty act which lowered interest rates and also

less .ormal, less interconnected you know, having the capacity to say the dollar clearing the new york fed is sort of the key lever. that will be a complicated business. the second thing is, you know, i spent a little bit of time in the government on financial regulation more generally. and you hear globally, this is too much, and it's going to be u.s. firms at a huge competitively elsewhere. and the gfi reaction in the broader context is that it is not the way they should think about it. the rest of the world should come up to our standard and the has spent resources trying to do just that. and it connects back, of course, to where you started, which is that it's not for academic reasons that we are putting all of these different things in place. it's a huge national security component and a huge component that relates to the effectiveness, integrity, and proper functioning of our financial markets in the u.s., and therefore globally. >> let me piggyback off of that and ask a couple of questions as it relates to challenges and interpretations. earlier, we heard, and stewart made this poin

interconnected for which, you know, having the capacity to say, you know, dollar clearing at the new york fed is sort of the key lever and so that's going to be a complicated business. the second something, i spent a little bit of time in the government on financial regulation more generally. you know, you hear globally this is too much and it's going to put u.s. firms as a disadvantage relative to their competitors elsewhere. i think my natural reaction to that and the reaction that tfi has brought and the treasury has brought more generally is that's not the right way to think about it. they should come -- the rest of the world should come up to our standard, and tfi and the treasury in other domains has spent an awful lot of elbow grease trying to do just that and being quite successful at doing just that, rather than dumbing down our own regime in a way that makes the whole thing less robust, and it connects back, of course, to where you started, juan, which is that it's not for academic reasons that we're putting all these different things in place. it's got a huge national security comp

new york university. she talked about his courageous actions during the 2000 eight financial crisis. she is the first woman to lead the fed and its 100 year history. she was awarded an honorary doctorate from nyu prior to her remarks. this is about 10 minutes. thank you, president sexton. on behalf of the honorees, let [applause] and congratulations from all of us to you, the class of 2014, and to your families, especially your parents. this is a special day to celebrate your achievements and to look forward to your lives ahead. your nyu education has not only provided you with a foundation of knowledge; it has also, i hope, instilled in you a love of knowledge and an enduring curiosity.

new york university. she talked about his courageous actions during the 2000 eight financial crisis. she is the first woman to lead the fed and its 100 year history. an honoraryded doctorate from nyu prior to her remarks. this is about 10 minutes. thank you, president sexton. on behalf of the honorees, let me express my thanks to nyu. and congratulations from all of us to you, the class of 2014, and to your families, especially your parents. this is a special day to celebrate your achievements and to look forward to your lives ahead. your nyu education has not only provided you with a foundation of knowledge; it has also, i hope, instilled in you a love of knowledge and an enduring curiosity. life will continue to be a journey of discovery if you tend the fires of curiosity that burn brightly in all of us. such curiosity led eric kandel, here at nyu, to his lifetime goal, to discover the chemical and cellular basis of human memory. a few years after his graduation, he was doing research on cats. but he had the idea of focusing on an animal with a simpler, more fundamental brain: the california sea slug. his colleagues all

new york stock exchange with that and more. good morning, jill zbhood morning, anne marie. fed chair janet yellen downplays inflation affairs.esterday she said the u.s. economy still isn't healthy enough to grow at a consistently strong pace without the help of the federal reserve. she made it clear the federal bank sees no need to raise the interest rate any time soon. the dow rose 98 points wednesday. the nasdaq gained 25 and the standard & poor's gained 15 poi points to show another high. >>> ceo jeff bezos introduced the new fire phone yesterday. it produced 3-d-like images that uses cameras on each corner that can tell where your head and eyes are and it allows users to easily purchase items from amazon, but for now the phone will only be available through at&t. >> when we brought the concept of fire, our new smartphone to them about three years ago, they were excited. it's built to work across many different types of mobile networks, and we'll see overtime. >> the first fire phones ship on july 25th. anne marie? >> just what i need, a phone that makes it easier for me to shop. i don't think so, but i'm sure other peopl

the feds believed there is at least $30 billion in criminal funds being transferred. the new york state financial thought it was $100 billion. and the federal statute, the feds could fine them up to double the $30 billion which would be $60 billion. you were dealing with money laundering involving genocide, you were dealing with people including the c.o.o. who just announced he was going to resign, he was the chairman of this unit, that the analogy of this practice was evasive and it went to the top and one of the big kicker was that even after the investigation was open and the company was cooperating and doing its own investigation, they had a very embarrassing moment where they had to come to the u.s. attorney's office and say, you know what, we just realized that we've still been doing it for a few years. we didn't know. so when you put all of that together, that really accounts for the magnitude of the fine here. up on this pick concept of we didn't know that something was going on and you've been reporting about the banking industry. is that a description that has been used

new york university. she talked about his courageous actions during the 2000 eight financial crisis. she is the first woman to lead the fed and its 100 year history. she was awarded an honorary doctorate from nyu prior to her remarks. this is about 10 minutes. thank you, president sexton. on behalf of the honorees, let me express my thanks to nyu. and congratulations from all of us to you, the class of 2014, and to your families, especially your parents. this is a special day to celebrate your achievements and to look forward to your lives ahead. your nyu education has not only provided you with a foundation of knowledge; it has also, i hope, instilled in you a love of knowledge and an enduring curiosity. life will continue to be a journey of discovery if you tend the fires of curiosity that burn brightly in all of us. such curiosity led eric kandel, here at nyu, to his lifetime goal, to discover the chemical and cellular basis of human memory. a few years after his graduation, he was doing research on cats. but he had the idea of focusing on an animal with a simpler, more fundamental brain: the california sea slug. his c

liz: and the fed meeting began today, but we know that nicole petallides a is always at the new yorkountain coffee be, amazing it's hitting another all-time high. >> reporter: yeah, pretty amazing, up 4.5% at 125.54. certainly the feeling from the analysts they have upside potential, and everybody still loves the deal that keurig has with subway and also coca-cola and analysts, as i noted, still think there's upwards move for the stock. david: nicole, we're often talking about the big caps and sometimes the small caps. not too much the mid caps. but today the mid caps -- and there is an s&p 400 fund, they hit an all-time high. >> reporter: right. well, this is why you're diversified, right? it's amazing, really outperformed the small caps, did well. the russell was up .7%, but the mid caps stole the the show. liz: and oil is down, i find that fascinating. we go to online travel. those names are moving up on an upgrade. >> reporter: that's right. both orbitz worldwide and expedia got buy ratings up over 4, liz and dave. liz: it's a win for the dow, the nasdaq, the s&p and the russell

. >>> coming up at the top of the hour from right here at the new york stock exchange with hours left to trade before the fed can you best position yourself? we've got all of the angles covered. and john najarian fints another case of unusual options activity. stock moving bictime on it. revealing what it is coming up, and a california mayor really steps in it this time. find out why he's created a big stink in our worst trade of the day. that and much more straight ahead, as i said from right here at the knock stock exchange at post nine. see you there in a bit. >> looking forward. >>> and the disrupter 50 list is out pt's one of the 50, snap chat ceo not available for an interview pb in sprue snap chat fashion, ten seconds to respond to his company's being chosen. we'll play this once and only once and it will disappear like so many snaps before it. >> we appreciate you including snap chat on your disrupter's list this year and wanted to send you love from venice. >> all: thank you, cnbc! >> and there you have it. now let's over to the group, rick santelli, a fan of snap chat. rick? >> i'm a fan of anythin

new york federal reserve. dudley has already come out and said that the markets and the fed are in agreement that a rate hike might take place somewhere around the middle of next year. this report today about the moderate expansion of the laysmy in all 12 districts the groundwork for rate hikes coming. maybe sooner than we think. looks very solid. data before may 23 -- we know since may 23, 16.7 million. the best level we have seen since the recession ended. things look pretty good. also noted an expansion in manufacturing activity across the nation. especially strong showing on the east coast. and in st. louis and kansas city. his production coming back to the eid states from overseas? >> is tricky. -- it is tricky. we have gdp component data that suggested tdp might be more like 3% in the second quarter. just aial production month ago in march made an all-time record high. this report is consistent with that. it did come off a little in april from march and we get made data. may data. >> the figures for the west trade deficit in april moved to their highest level in two years. what impact is that going to have a

new york, i'm mark crumpton. this is a special edition of line." -- "bottom the fed has tapered and three of its four previous meetingskers are also considering when to begin raising the benchmark interest rate for the first time since 2006. the decision in 2:00 p.m. and fed chair janet yellen's news conference at 2:30 p.m. we will have live coverage of both. let's get you set up for this important thing. we will be hearing from michael mckee at the fed in just a few minutes. also joining us this afternoon, the chief income strategist at jenny mungo murray scott, john king, -- tom keene, host of bloomberg surveillance, and on the markets today, jonathan ferro. mckee, you will be with us in just a full -- a few minutes. i want to start with guy. we had some economists surveyed here and most of them were talking about the change in the outlook in interest rates. it is inching toward that two percent threshold will stop we heard about that just the other day. what is the fed to make of this? >> the challenge right now is the federal reserve is covered to go either way with the policy bias. as you reference, both measures

new jersey governor chris christie's administration. the associated press reports that the feds are looking at whether the funding broke the law by misrepresenting bond documents from the port authority of new yorknew jersey. all sides have declined to comment. christie's administration is being investigated as you know for lane closures at the george washington bridge. >>> now your nbc 10 first alert weather with meteorologist bill henley. >>> clouds are here and those clouds will be building during the day. the temperatures will be climbing to a steamy start this morning. humid conditions will persist through the day and afternoon showers. but it's this evening that we'll see storms in the area. heading out the door, it's clouds from mount pocono, trenton and wilmington. upper 60s and 70s to start with. if you're looking for showers, it's this afternoon you'll see them. for now it's a cloudy view from her at the nbc 10 studios. no wind just yet. there's no cooling breeze around, just plain old warm and muggy this morning. the low clouds look north and west. the cloud cover is going to be moving in with these storms for this evening. before those storms move in, though, we'll likely get pop-up

the report says the feds are looking at whether the funding broke the law by misrepresenting bond documents from the port authority of new yorkand new jersey. all sides have declined comment. christie's administration is being investigated for lane closures at the george washington bridge. >>> five minutes after 5:00 now. from our delaware bureau, struggling casinos find out if they'll get a financial boost from delaware lawmakers. state lawmakers will vote on a relief package today. the senate was supposed to take a vote last night but they had to iron out last-minute issues. the casino is hoping that the state will slash the amount of revenue they take from the casinos every year, staying that out-of-state competition is herring them. the gaming houses say they will have trouble staying open if they do not reduce the revenue they take. >>> now first alert weather with meteorologist bill henley. >> much more humidity, low during the day yesterday but steamier this morning. even though it is dry, no rain just yet. we have low clouds in the area and showers and thunderstorms that are going to be developing this afternoon and w

pessimistic settlement, speaking in new yorked to he said the federal reserve should begin raising interest rates as soon as next quarter. that's much earlier than a lot of fed watchers are expecting. benchmark rates should be higher because the fed is closer to reaching goals it set for the unemployment rate, economic growth and inflation. >>> more now on those solid housing reports out today. sales of new homes surged in may, rising by a far more than expected 18.6% from the month of april to the fastest pace in six years and also, home prices in the nation's largest cities rose by 11% from the same month a year ago according to the latest home price index. that sent shares of a number of home builders higher including dr horton, lennar, baser and toll brothers. more listings and stronger employment drove the surge in sales during may and there may be more to it than that. diana olick has the story. >> reporter: the new home numbers were good, perhaps too good to be true. >> you have to take a look at it with such goggles on and it's just that. new home sales suffers from the law of low numbers. >> reporter: sales of newly built homes surged over 18% from

new york stock exchange. the question of the day, wwjd. what will janet do? the fed chair wildly expected to announce another cut in its bond-buying program today. as inflation ticks higher, investors await, how soon she'll raise rates. in d.c., steve, that seems to be top on the mind of investors today, after inflation ticked higher. >> yeah. i think that's right, scott. you're going to see two things from the federal reserve today most likely in its forecast. it's going to lower the growth forecast, which was at about 2.9% for this year. not going to make that. you think the fed would bring that down on average. at the same time, likely to raise its inflation forecast. i just want to show you there's two measures of inflation here. one is the fed's pce, following closely. runs lower than the cpi. all expectations of that, on its way up. the question is whether or not janet yellen and the fed have guided the market on what happens once it reaches it rate that it's been seeking, 2%. remember, that's been the fed's goal all along, to get up to that 2% rate. what do th

fed, the vix, and the markets. >>> joining us now on set is the "new york times" columnist, pulitzer prize winner, and contributorng. >> morning. >> what do you think about the fed? >> fairly interesting, fairly significant, not a trend yet, but be aware of this. i said for some time that i think investors need inflation hedges in the portfolio, basic material stocks, commodities, producers, maybe index funds. i'm not a big fan of gold, but maybe a little gold here is appropriate. i'm surprised it's not moved more frankly because pressures are building. look at yellen. she's a monetary dove. i thought it significant. immediately after being confirmed, goes out and holds hands with the unemployed. well, you know, bond, and that's her priority, and i think investors need to wake up we'll have a situation. >> i see it differently. i think people are waking up to the idea that the policy statement is deliberately manipulative and the desire here is not to scare markets talking inflation, not to push the yields up. i mean, in just three weeks, we moved 20 points higher on the 10-year yield. we're moving, but they don'

become the next business to discover the new new york. [ male announcer ] see if your business qualifies. >>> welcome back. fedsmissed enflasion concerns last week, but some people, including cnbc.com's jeff cox are wondering if the fed is missing inflation threats like it missed the meltdown in 2007. >> thanks, kelly. you might not be able to tell from big market moves, but wall street's not really happy with janet yellen. it's not something the fed chair did, but didn't do, which is give inflation any serious due following last week's meeting. i've been inundated with notes from economists, strategists, you name it. they believe the fed is not taking inflation seriously enough. capital economics for one flat out said yellen was wrong for her comment that inflation is just noise, and tom pore khellie at rbc wondered if maybe this wasn't yellen's subprime moment, a reference to ben bernanke's dismissal in 2007 of the threat that subprime mortgages pose to the economy. one more point, the day after the fed meeting, the market's black swan index, which measures extreme fear, spiked to its 2014 high and is actual

new york with a preview. what are you looking at today? >> we will be looking at value in the market, away from the fed, but the market reaction to what big it is fed day. i will be on with mark crumpton at 2:00 p.m. before that, value investing. thomas purcell he with rbc capital will be joining us. i want to focus on this new vector in inflation. the back and forth on what gartner -- governor carney will do. >> yesterday in the u.k., we have data showing inflation coming in a 1.5% year-over-year, the lowest level in nearly five years. interesting to see how that factors in to mark ernie's thinking. the message from the bank of england this morning am a still surprised that when markets are pricing and a rate hike st. nick unlikely, and 2014. could likely be 2014. >> i don't think there's been a great reaction that i saw. you see sterling, 1.6946. -- 169.46. i think it is this ferment of a very low base of inflation where up we go, is it enough yet? no. but do you pull forward from 2016? you see the raging debate with what bill gross is adjusting and imf and what those more .ptimistic are suggesting these people are more optimistic than

new york times editorial page. there are some slips where people are getting fed up with the way fifa does business and there is a real potential. is not just a discussion like the n.c.a.a.. that there is sort of like a renaissance of revulsion against these organizations that act like mafia cartels and use sports and the exploitation of other is to enrich themselves and it is bubbling up in a way that is really strong. we can put the ioc in that category, the international olympic committee and i am hoping the combination of the acre people have and the corruption causes fifa to crack like an egg and in the future people will treat soccer like guardians of the people's game and not mike toney soprano running at duke on the corner and basically holding people up for their own personal enrichment prior to the 1920s. that is a great question so i think by the time you are ready to place junior world cups hopefully we will be living in a world without fifa. as the hope anyway. united states, the one great thing about the united states and the world cup is it is one of the only times where you see masses of people in the