i would like to welcome my special guest today, peter boockvar thanks for taking the time >> thanks for>> listen, you know, i think it's great and i'm really optimistic that our fed is trying to reverse some of the policy, especially this grand experiment but we need to reach a tipping point for it to really make a difference what i mean by that is, no matter what we're doing, if the ecb bank of glaengland, bank of japan, or the bank of china somehow don't stop purchasing, it really gets lost. we still see yields go down and curves flatten are they close getting to the point where their activity along with our fed will tip us so we actually see some normalcy or maybe a steeper curve or interest rates that send better signals? your thoughts? >> well, we're certainly creeping in that direction and as you mention ed, the othe central banks. even the bank of japan, instead of buying 80 trillion yen a year, they're on track to buy a little less than 60 trillion they're already going through a subtle, quiet, tapering, so to speak. the ecb are going to announce some more of that the later part

joining us is peter boockvar welcome. nice to see you. what is the market impact of a delay for several weeks? >> i'm not sure. we saw this with the house bill, it initially failed and they got around to it i think that maybe they'll come to something over the next month. i think it is testing patience now we're getting to the second half of the year people are realizing maybe we do get tax reform which would then follow healthcare. we won't see the impact until 2018 it came in the context of central bank noise with draghi, stanley fischer, john williams, healthcare so the market was at a vul n vulnerable point yesterday when this hit the tape. >> there was earnings growth for the first half of the year, expectations for more, so what do you think the impact is of has we heard out of the ecb forum yesterday? >> from being behind the curtain, now they'll be more front and center we'll go into september with maybe the quantitative tightening beginning from the fed. ecb tapering, the bank of england possibly raising rates, the bank of canada

. >> joining us is peter boockvar from the lindsay group and a cnbc crontributor michelle meyer, headf u.s. economics at bank of america merrill lynch. it's a two-day meeting, boockvar, i have to ask you about it they'll probably hike at this point. finally they're doing what you want them to do, right >> yeah. normalizing interest rates unfortunately -- >> are they behind the curve doesn't seem like it 2.20 on the ten-year >> the fed wants to get to a 3% fed funds rate they're only a third of the way there. we'll have a recession and an accident well before they get to 3% waiting for the ninth year of an expansion to ramp up rate hikes while i do think interest rates should normalize, they have waited way too long to be doing this >> where do you see signs of that >> the auto sector is now entering a recession timing on that is not too good >> i know. but if they're behind the curve, you would think oil would be at $100, 150 -- that makes no sense. >> it's tough to define behind the curve. i don't like interest rates on a real basis that are negative we had this alan greenspan, berna