to advance that, chairman powell, governor powell supports the gradual increase in interest rates. he recognizes the importance of an independent reserve, important, very important. i don't want members of congress with our prejudices and biases and political ideologies to influence the independent, to compromise the independence of the federal reserve. governor powell recognizes that independence. he's committed follow an example of prior federal reserve chairs by doing the job without a view to political outcomes. governor powell played an implemental role under the rules for dodd-frank. we need the federal reserve to make sure those rules are applied thoroughly and consistently so that gaps or failures don't create larger risks for the financial system. we know that too many people in this body seem to have a collection -- a collective amnesia about what happened ten years ago. it is up to us to remind governor powell, it's up to him to remember what happened ten years ago and to learn from it. as chair, governor powell is responsible for making sure that the fed fulfills its co

powell, on your nomination. you know, both your immediate predecessors of the bed, chairman yellen and chairman bernanke repeatedly testified before the congressional committees about their concern, about, the impact of the rising debt, national debt on the economy. here's what chairman bernanke told the joint economic committee in june of 2012. he said large deficits and debt over long a long period of time interest rates above levels where they normally would be an crowd out private investment, and are bad for growth and productivity. they also may involve borrowing from foreign lenders which is also a drain on current using. do you agree with his statement? >> yes, i do. >> and here's what chairman yellen said this year on july 12 before the house committee on financial services expressing her concerns about rising debt. she said current spending and taxation decisions will lead to an unsustainable debt situation with rising interest rates and declining investment in the united states that will further harm p

how do you think jay powell is going to react?f course will put upward pressure on market interest rates as the treasury demands more credit in-depth markets. the fed will have to respond to that, and those underlying pressures become clearer and obvious. i think the fed tends to of aase the probability rapid increase in fed policy rates. but again, i wouldn't carry this too far. the impact of the deficit on fed policy, it is not likely to be immediate, it will be a longer-term influence that may be pushing rates up over the longer-term. i want to ask you about the new personnel and voters because the presidents who will be voting tend to be a bit more hawkish. so we know very well, marvin -- is in line potentially to be on the board. >> is this going to inclined the fed more? in particular, what kind of fin be?r will mr. good thin you will be extraordinary, i surly hope it well. marvin is a truly brilliant federal reserve economist. i worked with him closely for a in the of a century and time since, in 10 years, he has continued

we have been talking about how jay powell is the janet 2.0, what is next for powell and the feds?one thing for sure, he has been confirmed as chair of the federal reserve, he will sit in that seat for the next four years, and broad, bipartisan vote of 85-12 to pass this confirmation and make it an official -- make it official, jay powell be taking over -- taking over. he as -- is seen as supportive of a gradual rate hike pass. someone dovish as our bloomberg ego team points out in the sea, noting that there may be more slack in the labor markets, more room to run as this falls below 4%, suggesting he will not be going too fast to pull the trigger on rate hikes, interesting that this confirmation among is very broad set of leadership changes, who will be the next president of the new york. went throughiend his confirmation hearing, he faced tough really by democrats, he is nominated to be on the board of governors. that you havesaid it wrong. you are wrong mr. goodfriend. much wrong with you. he is onboard now, he says the fed is on the right path. they will head to that 2% inflati

powell to serve as chairman of the federal reserve. today the senate is considering the nomination of mr. powell who brings with him degrees from princeton and georgetown and a record of high achievement in both the public and private sectors. since his nomination to the board of governors to the federal reserve system in 2011, which received strong bipartisan support, he has served as a steady voice and thoughtful leader. i very much look forward to supporting his confirmation as chairman. now on one final matter, when the press was focused on the unfortunate lapse in government funding, the good news about last month's historic tax reform law continues to pile up. the number of americans preparing to receive pay raises, special bonuses and other benefits thanks to the historic tax cuts passed last month continues to grow. these are just the first fruits of a law that also lays a long-term foundation for better job opportunities, higher waeublgs, and more -- higher waeublgs and more investment. on this subject here's something not man

alan greenspan, i want to end with jerome powell. the changing of the guard comes at midnight tonight when he takes over as fed chairman. what will be number one on his to do list. what does he need to do list -- to do first? alan: open his mail. figure out how to open his bloomberg terminal, that's what we would hope you would say. alan greenspan, thank you for your time today. hanging on every word at grant thornton. an interesting conversation with german greenspan and i think we go back to what you see in the midwest, which is a different america than the time of german greenspan. the technology overlay today is extraordinary. how do you interpret it at grant tic, day byck by day, technology in this american economy when you have no clue what productivity is that you have no clue where gdp is? diane: its complicated very as no question. and it makes it harder for the fiscal agencies to, believe it or not, to stay ahead of these measurements because they have to get funded to be able to get the improvements they need to measure wi

jay powell is up to the task. i was proud to confirm him yesterday. the senate advanced the nomination of another highly call fied nomee, alex -- qualified nominee, alex azar. mr. azar discussed his intention to confront head-on the opioid crisis that is hurting so many families across the country, including in my home state of kentucky. he made clear that he will place an important priority on education and enforcement to halt the advance of the scourge. but he recognizes that we need effective, compassionate treatment options for those seeking recovery. for all americans he will work to expand access to high-quality affordable health care options. his distinguished record including prior h.h.s. service and private sector work shows he is the right man for the job. it is vital that this department be headed by a leader with mr. azar's reputation. he will oversee $1.13 trillion in department depending, supervising critical research and administering and reforming programs that touch millions of american lives, such as medicare and medicaid. i look for

powell will chair his first meeting in march. here to talk more about the direction and pace of tightening monetary policy is michael, head of global strategy. he is with us from his company's offices in new york. great to have you with us. this year's biggest challenge for mr. powell, will it be too little inflation or too much? >> thanks for having me back. the fed has missed us on its inflation target for many years now. underlying inflation as been around 1.5% on their core p. c. e. measure. yellen missed, and right now it looks like powell will miss for a bit as well. but we are seeing some upward macroor global perspective. a stronger domestic back drop and drop in the dollar as well. we could see a modest pick up in inflation. but we don't think we will g.e. back to the fed target just jet. >> we were talking to germany schneider earlier, and right now the five-year is at 29.37%. if you look at dosco on the bloomberg, the market is saying a very different thing to what the fed is saying. where should the five-year yield be

——joe powell. he will the central bank, succeeding janet yellen. —— joe powell.go, let's have a look at the markets. as you can see, most of them are in negative territory. this is after the dowjones industrial average finished in negative territory overnight. thank you to spending time of us. president trump has denied that new us import duties targeting mainly asian companies will spark a trade war with china. the us attorney—general, jeff sessions, has become the first member of president trump's cabinet to be questioned by the special counsel investigating alleged russian interference. the trial of darren 0sborne, who's accused of driving a van into a group of muslims outside a mosque in north london, has heard that he received direct messages from far—right groups before the attack. 0sborne denies one charge of murder, and one of attempted murder. 51 year—old makram ali was killed in the incident injune last year, as our home affairs correspondent daniel sandford reports. the seconds just before a large white van, travelling at speed, smashed into a crowd of

up forhat sets us outlook under jay powell.dual mandate you know well, so unemployment is at 4.1%. at 1.5%. is the jay powell fed going to be in the quagmire of talking about an alternative for the 2% core inflation target? >> i would suspect certainly not in the short term. here's what week -- here is what we can say. it is possible that over the next few years, things continue more or less as they have been, growths to say continuing, inflation gradually which closer to 2%, in case, fomc decisions will be similar to those of the last year. it time to go up another quarter basis point? laste experience of the eight or nine years is a guide to the future, some unusual things people do not expect will happen. for example. inflation has not been behaving as one would have expected based on historical correlations with the unemployment rate. maybe inflation will continue to well below 2% and at some point, the fed will have to answer the question, is it really your target? on the other hand, perhaps impacton because of the of the

jerome powell was approved in an 84-13 vote.take over for janet yellen when her term ends february 3. powell who has served as a federal reserve governor since 2012 will inherit an economy on the upswing thanks to an increasing labor market and strong global growth. powell will also oversee a post recession economy with an ploumt rate at a 17 year low, limited wage gains and growing inequality. what can we expect from jerome powell in terms of his policy, how different is he going to be from janet yellen? >> good morning. solt expe so the expectation is that he won't rock the boat too much and will be seen as more of an extension of the status quo. there has been a little bit of criticism leveled against him because he is the first federal chair since the '70s who isn't an economist even though he does have a lot of experience at public policy and finance. he is inheriting a very strong economy. stock market at record highs, unemployment at multiyear lows. and his main concern really will be to stop the economy from overheating.

i hope jay powell pays attention to it.e understands the markets he really understands the automobile industry. he was the founder of the industrial group when he was at carlisle i hope he has seen that the automobile sector looks like it's going to fall the automobile sector was in a year over year recession in september before harvey made landfall it looks like it's going back there. fresh data from j.d. power shows the 33rd consecutive month of increasing incentives. the consumer is running out of steam. the fed has to look through whether or not this is a temporary spurt in the first half of the year or whether it's sustainable that they can go for the four rate hikes. >> steve, tie it all together for us >> a little hard when i don't understand what danielle is talking about when it comes to the consumer consumer spending has been doing pretty good. people about to get raises. >> talking about car sales. >> steve, a lot of it's debt -- >> car sales have been solid at $17.3 million. it's down a little bit from 17.5. >>

the senate banking committee has approved powell's nomination.mination now goes to the full senate. subpoenason faces two in the rush investigation. russia investigation. -- investigation. the house intelligence committee has issued its own subpoena. bannon appeared before the panel yesterday. he was barred from answering many of the committee's questions. the traders have faced biggest loser when venezuela was hit by turmoil. so far in 2018, they have returned 12%, four times what investors have gotten from -- has advised the queen to provide president trump with a state visit. he's been unhappy at reports he will not be invited to prince harry's wedding. global news 24 hours a day, powered by more than 2700 journalists and analysts in more than 120 countries. i'm taylor riggs. germany's deeply divided social democrats face a crucial vote this weekend. they will decide on sunday whether to end a formal coalition talk. a formal coalition government poses less than the threat of -- we are joined by dennis snower, president of the kiel institute of

in economics the first non academic to run the fed for thirty years i think people who say that powell is a yellen clone are in for a surprise because i don't buy that about him you know he's an attorney right. he's an attorney yes but his because davis' background has been in private equity yeah right ok and before we let you go one other area i want to talk about it it's about the world around us so let's talk about the other central banks around the world the big ones bank of england european central bank bank of japan what are they doing now on rates and quantitative easing and actually could you explain quantitative easing or q.e. as we call it for those that might not know and then give us a little mini tour of the key central banks around the world. to quantitative easing is basically buying securities in the open markets trying to push interest rates down further than they would otherwise be in a zero interest rate world because zero is theoretically a bound. and banks banks engage in central banks in gauging q.e. again hoping to spur borrowing and lending and consumption in th

right now at the powell cable cars are switching back right around at powell and washington due to at on surface streets which is powell and sutter. so just a heads up for anyone who was planning on using the powell cable car line this morning. you may see delays. a tough commute this morning near ignacio southbound in the yellow. fog in the north bay is probably the cause of the delays. the eastshore freeway doesn't that look fun? we are in the red about 32 minutes from 4 to the maze. 580 packed as you make your way over towards the toll plaza. and then you have another 32- minute ride heading into san francisco. hat's a check of your traffic; over to you. >>> back to you. >> thank you. >>> let's take a live look at the sierra right now. a storm forecasted to move in this morning could bring several inches of snow to the area. the most recent snow will help put a dent in the snowpack. >> it will. we can't wait to see how much snow comes down in the sierra. jaclyn showed you the rough commute this morning. at least there isn't rain. but it's happening to the north. redding will get s

as jay powell comes in, this is all about janet yellen leaving. given some space to explain how she feels about the economy and she will go off into a different realm. i don't think we get anything from the fed. i am pursley never particularly interested in the numbers for nonfarm payrolls. it will be very volatile. lisa: what is the biggest economic indicator, rachel, that you are looking at that affects more broadly the u.s. credit and frankly emerging markets? because the dollar has been the story of the day, of the week. what could make it go stronger and actually disrupt a lot of the consensus trades right now? rachel: a single indicator, i would cheat a little bit and say the financial conditions indicator. it combines a bunch of things. i think the signals we have gone back to as loose financial conditions as we have seen since 2014. we think this means party on for the near part of the year. but as we go into the back half of the year watching volatility, which has begun to move off the floor. if it does more so, it will decompress assets.

she also doesn't want to bind jay powell in the future with a decision today.en up to him and leave their options open, and say as little as possible. scarlet: is there a potential for surprise? >> i don't think so. i grew up mike. one of the reasons the not going to hike today is that they hiked in december and he wants to go slow and he want to go measured. in order to do that at the pace they want to go with three hikes this year, if they hike in january that means that if there is a flip in the data they can't take that back in march. is the ideaof this of measure. we have chairman greenspan coming up later, a great honor to have him with us today on this last day for fed chair yellen. mike, tell us what measured actually needs? >> he's the one that said you want to raise rates slowly and inflation is flat as possible. not below 2% but you don't want a lot of volatility. that was the legacy of the greenspan years and some say it led to the financial crisis because those predictable rates were too low for too long. under jay powell we are probably going to h

you are looking at a live shot now of the senate floor as they vote on the nomination of jerome powell federal reserve chair. president trump picks in november to replace current fed chair janet yellen when her term ends in early february. his nomination is expected to pass the senate. we will continue to monitor this vote. this is bloomberg. ♪ emily: texas instruments out with earnings, falling short of some estimates, declining as much as 6.7%. texas instruments is the largest analog chips in many devices. taiwanese electric scooter maker nigro wants to make sure it's vehicles don't add smog to the air. our chief north asia correspondent stephen engle take a look at how this tech upstart backed by former u.s. vice president al gore is disrupting a gas entrenched market. stephen: locals call this the school -- the scooter waterfall. noisy, obnoxious, albeit necessary mode of transport. here's the thing -- taiwan wants motors by 2021. this company is called by some the tesla scooters. for about 10 years, taiwan's government has been pushing for an electric scooter to turn this very dir

powell understands who appointed him, who put him in that seat and what that person, president trump, gauges as his pa rom ter as success - >> are you saying a federal reserve chair could be politicized? >> only from the existence of the fed chair. >> i see. >> to the point that they understand what's out there in the atmosphere around this decision, i think that there is -- it is in no one's best interest to raise rates too quickly. i think everyone understands that because the chairman

inflation remains and starts moving towards the target, we'll learn things is it a target for jay powell, a ceiling or an average. along with jason and others, i suppose he will accommodate, and it's important for precisely the reason jason said. we need this to reach lower pay work workers in terms of wage growth >> hold on we have not -- we've had a patient gentleman, mr. brill, who has been patiently waiting without nary a word. >> a couple of quick points. one on the retail number which is a bit disappointing from a couple of innocents minutes ago. we had an early thanksgiving, and i think that might have pulled some of the jobs into november we saw an upward revision, in fact, in november's number

prudence powell: thank you for having us. rosemary: so, first thing, if a deal doesn't get done, tell us what happens to daca. explain what the next steps are. philippe weisz: sure. so, as of march 5 of this year, what we're going to start seeing is 221 individual daca recipients who are going to start losing their status. and as we know, the numbers are close to 800,000 individuals who currently have daca, the protections of work permits and drivers licenses. and those individuals are going to start losing jobs and start--you know, we're going to start losing members of our community. rosemary: and for you, this affects you personally, prudence. prudence: for me, yes. this affects me personally because i'm a daca recipient. and just in october, when he passed the last incentive to end daca, i was able to renew for another 2 years. so, come november of 2019, i will no longer have daca. what will happen then, you know? we need congress the past something that's fair for all undocumented youth to be able to continue to work, co

trump nominated powell. he's a former private equity investor and treasury official. jerome powell. the next head of the fed. the nfl in the meantime rejecting a one-page ad for the 50-second super bowl program submitted by the veteran organization and vets. now, the ad simply stated please stand in reference to the national anthem. the nfl said "no." simply why? well, they said it's making a political statement when you say that. joining me now and vets national commander marianne. all right. let me start right there. is asking people to stand for the national anthem a political statement in your mind? >> absolutely not. . ashley: so what did the nfl actually say when you asked for an ad in the super bowl program? what was their reasoning? >> well, we actually -- they actually called us the publications department from the national football league that does their advertisements are the ones that contacted us about placing the ad in the super bowl. they had one spot available, and they asked if we would like to place an ad. our communications department got together with our executi

powell begins serving next month replacing current chair janet yellen. powell has served 5 1/2 years on the fed's board, is viewed as a centrist, and is favored by both democrats and republicans. he favors easing bank regulations, especially for smaller banks. >>> the just enacted tax reform legislation is a boon for some disney employees. 125,000 disney workers will get a $1,000 bonus due to the new law. disney is making a $50 million investment into education programs for employees. the bonus applies to any full- or part-time employees who have been working for disney before january 1st. >>> uber hires its first chief diversity officer. bo young lee was the inclusion officer hired in march. her hiring is the latest outgrowth following an inquiry into uber culture by former attorney general eric holder. >>> move over. google is selling audio books. they're available on google play store in 45 countries and nine languages. no subscription is required. audio books can be purchased individually and can be shared with family members for no extra fee. anne-m

powell nominado por trump en noviembre fue confirmado hoy con 85 votos a favor y 12 en contra. ingresos, y es que ahora si el cliente no cumple con uno de dos requisitos la situaciÓn bancaria le cobrarÁ 12 dÓlares mensuales por el manejo de una cuenta de cheques online que anteriormente era gratuita. andrea linares nos expone las muestras de los afectados. andrea: las nuevas normas anunciadas por bank of america estÁn causando indignaciÓn de costa a costa. en zonas como raÚl carrillo denuncian que el banco estÁ castigando a las personas de bajos recursos todas las cuentas bancarias en lÍnea serÁn convertidas aa cuentas qque cuentan con un cargo mensual dde 12 dÓlares. para quedar exento del nuevo cargo mensual el cliente debe hacer un depÓsito directo mensual de 250 dolares o mantener un balance mÍnimo de 1500. >> mantener un balance de 1500 dÓlares es bastante alto, porque no puede dejar 1500 dÓlares. los necesitan para comer. andrea: actualmente, las cuentas en lÍnea de bank of america eran gratis. >> las instituciones financieras estÁn diseÑadas para ganar dinero. ellos usan

. >> hello, general powell. this is ronald reagan. yes, sir.laughter] >> actually i think it was my husband who set the interview up, to be honest with you. did he get a finder's fee or anything? >> i am still paying that finders fee. >> no one plays a song when you walk into the room anymore. [laughter] >> laura didn't bring the coffee. [laughter] >> would you fix your tie, please? david: well, people wouldn't recognize me if my tie was fixed, but ok. just leave it this way. alright. ♪ david: i don't consider myself a journalist. and nobody else would consider myself a journalist. i began to take on the life of being an interviewer even though i have a day job running a job of running a private equity firm. how do you define leadership? what is it that makes somebody tick? ♪ david: at what point did you realize that you had some skills that were maybe going to enable you rise up? >> my grandmother taught me how to read. so i grew up learning to read and read bible verses. the grace for me is that i did not spend a day in a segregated school. s

he'll -- powell will be pore friendly to that than yellen was.ellen was more of a proponent to dodd-frank and not going away from that. powell will be happier to change things >> thank you very much for joining me >>> japan's fuji film is buying a stake in xerox lan land h landon dowdy has more. >> fuji film will take over xerox and combine it into their joint future called fuji xerox the new entity will be 51.1% owned by fuji film and keep xerox's listing on the nyse. share holders will receive a 2$2.5 billion cash dividend that's about $9.80 per share the deal comes amid sluggish photocopier demand and a drive to cut costs in a news conference the fuji film ceo says the deal does not deplete our cash saying the company will continue to pursue mergers and acquisitions aggressively the deal comes as xerox has been under pressure from carl icahn and darwin deesen to explore a sale shares of xerox up 6% in early trading. back over to you >> thank you very much for that. >>> let's check back in on the markets. futures pointing higher today. we got a

dina powell certainly knows about the values of immigrants. dina powell is an immigrant herself. she's worked directly with female entrepreneurs from african countries. from other developing nations. is someone like dina powell going to stand up and say, i can't stand with the president or work with the white house? >> she's from an african country. >> she's from egypt. gary cohen who couldn't tolerate what the president said about charlottesville, will gary cohen stand with the president now? >> stephanie, at moments like charlottesville, or moments like whatever we want to call this episode, this vulgarity, this racially charged moment in america yesterday, what matters, as a reporter, as an observer, so often as a reporter, people will privately confirm different information to me. but a major moment what you say on the record matters. if you choose to say nothing, that's a statement in and of itself. and that reflects a desire to stay close to the administration. to stay close to power. that is each person's respective choice. this is american politics at the highest level. a

it is the jay powell fed versus -- i don't think it is a jay powell fed versus a janet yellen said, itoader than that. whether he is or isn't. i think that will be really important for ongoing sentiments toward the u.s. dollar. betty: i want to pull up the chart, it is the chart of the u.s. dollar and these declines. g #btv 6275. there is that great inflation debate. there is a sense of what can the fed tolerate here or not? i am curious, what else do you think is priced into this grim scenario in the dollar? in the face of rising interest rates? ray: go back to last year, most of us thought last year, the u.s. dollar would continue the rally that was set in motion by trump's election win. we spent the first nine months of last year basically unwinding that, even though the fed delivered exactly what it said it was going to deliver at the beginning of the year, against market expectations for a less aggressive fed. in that sense, to some extent, there was a trump discount that existed last year as skepticism about whether his policy agenda was going to see the light of day. with tax re

meeting of the federal open market committee, or the fomc, before handing over the reins to jerome powellthe two day meeting will end on wednesday where it is expected to keep rates unchanged. other items on the calendar this week include the united states and south korea entering into their second round of talks to try to salvage their troubled bilateral trade agreement. that also happens on wednesday. and on thursday we will see the titans of the tech world, the likes of alibaba, of the tech world, the likes of aliba ba, alphabet, and of the tech world, the likes of alibaba, alphabet, and amazon, posting their earnings that day. i spoke earlier to the chief investment officer for the asia—pacific at deutsche bank. investment officer for the asia-pacific at deutsche bank. we don't really think there will be any material announcement, because as we said, it is the last meeting as chairwoman, so hence they will keep the interest rate unchanged until of course she hands over tojerome powell, and then we would expect the first rate hike to happen in march. and we know that in the interim we

trish: will they be happy with powell? >> that is open question. people don't know that much how he views about all that. they don't know how necessarily he will conduct the rest of the operations. there is a lot of fragility in this. the market is concerned about gentle raising of rates. very narrow threading of needle. trish: sure. if you have economic fundamentals improving, if you have the benefit of, gary kaltbaum, of tax reform, better corporate earnings, better fundamentals, lower unemployment and higher wages, when mary says you have to thread the needle doesn't that help powell do his job? >> yes. he should be raising rates. one of the other outcomes which i abhor last few years savers have been ripped off. they have not been able to haveriesless income investing and they had to reach for yield and markets. that is why you're seeing markets doing better because they are going into the market when they should be in bond. i remember years ago before bernanke had did his thing, we had money market rates four 1/2, 5%. people can put their mone

powell won with strong bipartisan support. a current fed governor, he helped shape policy for five years under current head janet yellen. and powell's leadership will likely mirror yellen's. he praised her patient approach, gradually raising interest rates and slowly unwinding the $4.5 trillion balance sheet the fed acquired during the financial crisis. powell says he'll find appropriate ways to ease rules on banks while preserving core pieces of dodd-frank like annual stress tests for banks. yellen steps down february 3rd. she was first woman to lead the most influential bank. the first chair in nearly 30 years ton get a second term. >>> a 15-year-old student facing murder and attempted murder charges after police say he opened fire at marshall county high school in western kentucky. two people were killed. police identifying those victims as 15-year-olds bailey holt and preston cape. 14 others suffered various injuries. the victims range in age from 14 to 18-years-old. >> these children belong to this community and to specif

janet yellen prepares to step aside as she hands the baton to jay powell, what to expect from her finaleeting at the helm of the central bank. for tech earnings with facebook kicking things off later today. we will discuss what investors are watching. vonnie: all that straight to come. julie hyman is with us halfway into the trading day. after the bloodbath yesterday, may be an overstatement, how were earnings? >> relative basis, it was a bloodbath because of tepid action over the past year. the rebound today is becoming ever more tepid. fellh care stocks, which sharply yesterday on the news that amazon, jpmorgan, and berkshire hathaway were teaming up on a health insurance venture for their employees are the weakest group again today even though some health insurers are bouncing. aat is why the s&p is only of 10th of 1% while the dow is outperforming. the nasdaq up a 10th of 1%. this is a amid strong optimism on the part of consumers in the united states. excuse me. this is consumer confidence, the reading of optimism that stocks will rise over the next 12 months. this is a record high

powell was confirmed last night, so he will take over. will they raise rates faster notuse of the conditions tightening, the fed is not having an effect on the market? the president of the new york fed said he is leaving, but we might have to move faster because financial conditions are not tightening. a similar situation might be confronting mario draghi tomorrow, because the stronger euro has a suppressing effect on inflation potentially. goalel: and if your main and only mandate is to raise inflation, that is not helping you. plus, the euro zone is very dependent on trade, so it does not help to have that. there is something called the j curve that suggests it is a delayed effect. we will be waiting for that. david: many thanks to mike mckee. we want to go back to davos, where we are joined by erik schatzker. erik? erik: good to see you, good morning -- good afternoon, excuse me. on your way into davos, you published a linkedin post about what you called the market economy -- a vision for how maybe all or almost all goods and services

jerome powell going to take the homes in february.inutes from yesterday tell us anything about that transition period and what he might be like as head of the fed? a i think it is going to be fascinating time. on the one hand, the minutes did not tell us much news. that would put a lot of focus and emphasis on watching mr. powell's remarks over coming weeks and months as he digests the impact of what the tax policy means for the u.s. economy in the world economy. thehigh -- and what dollar's doing. in one respect, we are in a transition phase. from here, the narrative will be reset. it is not that mr. powell is expected to be different to miss given the backdrop of what is happening on tax policies and the economy, it will be interesting to see if he turns out to be more hawkish than anticipated. theyll get indications are coming weeks as he starts speaking more publicly. so much for you joining us. let's bring in ray ferriss, head of asia-pacific fixed income research and economics. he joins us from singapore. good morning to you. i'

president trump first nominated powell in early november. maria: i had the chance to speak with commerce secretary wilbur ross. he tells me his feedback from his international counterparts has been largely positive. >> surprisingly there is a growing recognition at the world trade system needs to be fixed. i had a big panel discuss yesterday including the head of the wto, head of cargo, and i asked them a simple question because they were all claiming we were protectionists. i said name me the country that is less protectionist than we are. they had no answer. and they ultimately agreed there are things that need to be fixed. there are abuses. wto needs to change some of its ways. it's the first time i have seen overt recognition of that. maria: with regard to nafta it was a welcome invitation for corporate america to say i'm going to build a factory in mexico then i will sell the products back to the u.s. but that payment template for all deals. after world war ii it was lib rat u.s. policy to help these countries recover from the ravages o

liz: breaking news, the senate has begun a procedural vote on the nomination of jerome powell picked to replace janet yellen. he will decide how high interest rates will go. the body of the senate could confirm him later this evening. watching that. as powell is about to officially get the job, thousands of federal workers are back on the job, but the aftershocks from the three day government shutdown still dominating the halls of congress, moments ago, senate majority leader mitch mcconnell assuring democrats he'll keep his word to launch a fair and open process to bring daca or dreamer legislation to the floor by february 8th. but what does that mean for prospects of a real budget? do they go poof into the air? which one will be the focus of the white house press briefing or will it be the sucker punch president trump landed on foreign, solar and washing machine companies. sarah sanders expected to take the podium for the white house press briefing at any moment. we'll take it. prospects of a trade war are sure to come up. talk about a war between up and down. we're talking directi

powell. they sit the rates that's effective february 3rd.owell would formally be sworn in for the other role, chairman of the federal reserve board of governors on february 5th. the yellen era ends with five hikes in the books, first five in nine years and suggested the powell era begins by resuming a slow hike of rate hikes. >> thank you for more on this, let's bring in former dallas fed president and cnbc contributor, richard fisher, and julia coronado here at post nine welcome to you both. richard, what do you think the significance is as janet yellen leaves this fed? we're not going to know yet, right? we don't know until the end of the cycle and how well or poorly it ends. think about the way people talked about greenspan when he left versus after the crisis, right? >> the word that came to me in the statement was the word "solid" over and over and over again. she did a solid job as chair started the exodus as we called it in the fmoc, five straight increases, clearing a path to e repair the balance sheet, but leading up to that she's d

as jay powell comes in, this is all about janet yellen leaving.ve some feelings about the economy and go up into a different realm. i personally never particularly am interested in the rules. it will be very volatile. lisa: what is the biggest economic indicator? it affects more broadly the u.s. credit and frankly emerging markets. the dollar has been the story of the day, of the week. what could make it go stronger and disrupt a lot of the consensus trades right now? indicator, igle would she consider financial indications indicator. it combines a bunch of things. the signals we have gone to as loose financial conditions as we have seen since 2014. we think this means party on for the near part of the year. in the back half watching volatility, which has begun to move off the floor. if it does more so, it will be compressed or scattered. lisa: it is time for the final rapid fire. we ask questions to each of you. you have to answer really short answers. the first one is what is more likely to selloff in the next nine months, u.s. high-yield or inv