powell, welcome. the treasury department is currently undergoing a review of cra and will be recommending changes to the banking agencies, including the federal reserve. my question is do you believe that a financial firm's demonstrated pattern and practice of racial discriminating and lending should be considered during a cra examination? >> i am familiar with that process and take the point of it whethero inquire into cra policies are in fact providing benefits to their intended beneficiaries. we are providing our own input into that process. in terms of the answer to your question, i think it is currently the practice that such considerations are considered in cra exams. >> it is currently but i am concerned someone to defang cra and take away as part of the process the history as far as discrimination practices and patterns. mostis why i am asking you since the treasury will be looking at the new -- i am a fan, i think we need to update but you should take into consideration racial discrimination.

chairman powell: yes, sir. it is absolutely true that we don't need volcker to find unsafe and unsound practices. in the bill you introduced, you have to -- you can't have anything more than a small trading book. we don't see significant safety implications at all. >> i appreciate that. it needs to be clear in this committee that we have the tools necessary to enforce safe and sound banking practices for banks of all sizes. those referenced in my legislation. by real mission here designating the fed is the principal regulator among your colleagues that we get better, more discreet interpretive guidance on how to enforce the volcker rule, which is a big source of confusion around the capital market system. chairman powell: it has been difficult with these multiagency groups to get to agreement. the volcker rule in particular is quite complex. we could certainly simple fiat. that simplify it. -- we could certainly simplify it. >> that freezes up capital markets in times of illiquidity that i'm the most concerned

german powell: yes. to understand internal operations, do you track budgets between the activities separately, able involving regulatory activity and people involved in monetary policy? german powell: each different division does have different budgets and we look at them from a functional basis but it is intertwined, as a matter of fact. indo call upon what we learn the supervisor regulatory and we get a lot of input. the board gets briefed on that all the time and it informs our monetary policy. so there is quite a lot of intertwining their. its not a clean separation. congressman: but internally there is already some level of a separate budget for the activities involving regulators. my particular curiosity involves hr 4755, theould, federal reserve regulatory oversight act, and this would put the regulatory component of the federal reserve on appropriations, which would be to me a compromise position. because you could propose putting the entire federal reserve on appropriations. the purpose would be

vonnie: in just moments, to rome powell will -- jerome powell will face congress. in prepared remarks already released, chairman powell says there's some headwinds facing the u.s. economy that are now tailwinds. u.s. economic outlook remains strong. we will be bringing you complete coverage of the powell testimony. first, a check on the markets. julie: the economic data is consumer confidence coming in at 130.8. that is versus the 126.5 that was estimated over the prior month. the number that we got from the university of michigan was not a strong. -- as strong. that was for january. this is for february. 162.4 in expectations component at 109.7. a handful of economic reports we got this morning including durable goods that fell more than estimated. all of that to weigh as well. changedcks little following yesterday's rally. they've been bouncing between gains and losses. 2006&p 500 going back to beforel about 3% to go we retain that record high. retail is one of the areas of strength today. macy's with a rebound in its comparable sales. 11 straight quarters of dec

powell: yes. we would. and we have. butdevil is in the details, as a general matter i think we should see some law changes that would enable us to better and further tailor regulation to smaller and medium sized institutions. >> i want to move to another toic but i also want continue the discussion on the importance of getting our regulations right to benefit a street and rural america. minnesota's sixth congressional district which i represent is home to some of the finest and most productive farmers and manufacturers in the world. many of these same individuals by thedvertently harmed current formulation of the supplemental leverage ratio that fails to recognize the exposure reducing nature of the initial client margin. this bank capital role as increasing clearance cost for farmers and manufacturers, making it more expensive for them to use the clear derivative market. i hope that is you and your colleagues review the slr you will come to the same conclusion that a coalition of republican and d

powell. i appreciate your long time here, and i think i'm at the end of the line here today you just to deal with a couple quick questions. in determining interest -- back in 2006, congress passed the relief act which authorized the federal reserve to pay interest on reserves at reserve banks however, when the bill got amended, the federal reserve in determines authorities interest rates was left to the board of governors, not to the entire federal open markets committee we know this is a valuable tool, using the entire committee to determine monetary policy. my question for you is, would you support an initiative on legislation that would give the full role of determining what the competent at the -- interest on excess to an entire expanded fomc and the federal reserve >> the full fomc decides the range for the federal funds rate, and the ioe remember is set -- so the voting members of the fomc who decide that i amount -- i would say as a practical matter, this is not a problem we need to so

will we have a chairman powell hurt will we had a chairman? powell put? matt: no.>> yes. david: it will have a much higher strike price. jonathan: it has been great to catch up with you. that does it for us from new york city. we will see you next friday at 12:30 p.m. new york time. 5:30 p.m. in london. we will bring you those comments and reaction with a full round table we finally hear from chairman powell in his semiannual testimony. this was a bloomberg "real yield." this is bloomberg tv. ♪ ♪ alix: i am alix steel. this is bloomberg etf iq. we focus on the risks, assets, and rewards offered by the etf. ♪ alix: some critics say the structure hasn't been adequately tested. we show you a recently passed a big test and volatility is the buzzword of 2018. we drill down to the first volatility etf. warren buffett likes to pick stocks. there is no getting around their influence our etf analyst is here. he is so psyched to be here. we compete for nerddom. >> i hear this critique a lot. each hasn't been tested. we had a good beta test when it was all this volatility. le

powell debut.xtendacific markets global gains as investors await the fed chairman's first testimony in front of congress. the 100 page deal. the eu will challenge theresa may tomorrow when it publishes a paper. sticking to stimulus. mario draghi tells the european parliament that uncertainty remains and he's not ready to reduce support. later we bring you our interview with the president of the bundesbank. ♪ a very warm welcome from right here in our blood body. we have a great day ahead of you. many important figures speaking to the conference and they will speak to bloomberg. we have a real rally on our hands and a potential for more momentum. or do we? bitare looking at a little of a global risk on momentum. before the powell testimony is saying sustained growth is there but he doesn't want to kill it off with high rates. oil inventories could rise by 2 million barrels. in february. 1.5% the best january in a decade for the oil market. this is dollar-yen. the worst quarter in dollar-yen in four

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will we have a chairman powell hurt will we had a chairman ? powell put? matt: no.es. >> yes. david: it will have a much higher strike price. jonathan: it has been great to catch up with you. that does it for us from new york city. we will see you next friday at 12:30 p.m. new york time. 5:30 p.m. in london. we will bring you those comments and reaction with a full round table we finally hear from chairman powell in his semiannual testimony. this was a bloomberg "real yield." this is bloomberg tv. ♪ retail. under pressure like never before. and its connected technology that's moving companies forward fast. e-commerce. real time inventory. virtual changing rooms. that's why retailers rely on comcast business to deliver consistent network speed across multiple locations. every corporate office, warehouse and store near or far covered. leaving every competitor, threat and challenge outmaneuvered. comcast business outmaneuver. ♪ alix: i am alix steel. this is bloomberg etf iq. we focus on the risks, assets, and rewards offered by the etf. ♪ alix: some critics say the st

investors wait to hear from chairman powell. we begin with a big issue, a big week of treasury supply. this blowout in the deficit in the u.s., from 3% to 5% by the end of this year, is completely unprecedented. >> for 30 years, the theory hasn't worked. borrowing, interest rates, there is a zero correlation with it. right now, rates are going up because of the fear inflation bankreturn and the central will have to exit a lot faster than people think. >> i agree it is not the deficit, it is growth with reflation attack. -- attached. treasury has more to finance a wider deficit, but also to -- the unwind of the balance sheet. investors this is returning back where they came from. the yields overseas are grinding higher, but the hedging cost is where the challenges have been. if you look at the differences between hedging as a european investor coming into the human at ash u.s. markets, it is no longer a track to. -- once you factor the hedging costs in. >> joining me around the table, jones and back, kathy mike. matt, it went wel

they're interesting speeches from powell.e will have his eye on financial stability more so than we have seen for other chair people. with that in mind, even though we don't see risks to financial stability today, if financial conditions can ease as they are trying to tighten monetary policy, that will change. that will encourage the fed to a salaried the pace of rate hikes. that is something that will .ontinue willie -- willie finished near 2%? >> they will be substantially lower than they are today. as the market is forward-looking and by the time we get to the end of this year, we think investors won't have as bright and outlook as they do today. the bar very bullish on everything today except treasuries. we think that will be different. kathy: we think the 10 year rates could peak of about three and a quarter. they could interest off and that there. 2% is much lower than anything we would look for at that stage of the game. i keep focusing on this negative term. i think that as the fed withdraws the stainless over the yea

powell, welcome. as the chair points out, you're required to be independent and accountable. you're also required to be tall and short. your opening statement mentions great exports but you don't mention that our trade deficit has gone up by $60 billion in the last year. and i would point out that the entire economic establishment in this country has made it almost prohibited to discuss the trade deficit and that's why we elected, that's why the country elected donald trump president. now, the chair of the subcommittee boasts that we had a good economy in 2017. he's right. we had obama's fiscal policies, obama's tax policies, obamacare, dodd-frank, janel yellen and her big balance sheet and had a great year. as a matter of fact, we have been on a roll since 2011. we were closing in on having a high enough employment rate so we would have a labor shortage and higher wages. we were going well. and so instead of continuing to be on a roll, we've b have aban those policies and have a tax and spend policy,

powell surprises the markets. movement is a movement is afoot, aiming to increase financial literacy and empower the african-american community jakey financial future. we will speak with one united bank -- we will speak with oneunited bank president teri williams on the challenge. all of that to come, but first, julie hyman is with us. julie: we have seen bouncing around in this trading day with stocks dipping lower than they were from the highs of the session and the dow now going negative and it looks like the first energy and health care were the drags we are seeing on the major averages. nasdaq continues to be the strongest of the three as we have seen, all month. i mentioned energy stocks rolled over earlier. that was after we got the weekly inventories number that showed a larger than estimated build in inventories. oil dropping to the lowest of the session with a 1.5% decline. we have been tracking all the monthly numbers as we close out february and for oil, it was not a good month. the monthly winning str

to jay powell.nging to every word of his first public comments later this morning. what will they be listening for? here is what some fed presidents had to say recently. >> some people are out there saying, we should raise our inflation target. raising it favor of from 2% to 3%. i want us to hit our 2% target. if we can hit it, that would be a positive development and give us a little more room to respond to futures. they have been moderately depressed from what i would like to see them, so i see inflation expectations as having come up toward something more reasonable and consistent with inflation target in the u.s. >> inflation dynamics now are still not clear. i am glad we are seeing some for mean, but it isn't obvious that inflation, given other dynamics .oing on, will reach our target david: joining us is matt boozer of bloomberg news. do i want more inflation or do i not want? the markets are in the tailspin and now we are concerned about whether we can get to inflation. matt: as you said, the

stocks recovering and jay powell testifying. more than ever, the fed is convinced the fed will do more -- four and not three. the policy statement that inflation will rise. it is interesting that a , is halffed watcher speed ahead. he will raise rates, but he is not going to ramp up the pace. think it's interesting how the bond market reacted anyway. the yield back 2.89. it hasn't burst up to 3%. they could heavy reassessed as the day wore on. i think we're back to square one. we will see.way, i think jay powell did a very good job on his first time out. catch his answers short. i still give him an eight. thursday, he will come out with even more confidence. >> kathleen hays, bloomberg economics and policy editor. let's get more news with jessica summers. u.s. is imposing duties as high as 106% on aluminum from china. producers receive unfair subsidies and dump their products in america. the decision comes the very day senior chinese advisors are in washington for trade talks. meanwhile, the former currency , concern about ameri

powell this morning, so i will carry on the message.the many entities that examines for cybersecurity there is zero harm onization between the agencies the result is that financial firms spend thousands of hours complying with regulations rather than actually froektiprog systems and customers. do you see this as a problem >> i think cybersecurity overall is one of the really significant threats. and we can never feel like we've done enough to deal with it. we try to harmonnize through the soup advisory guidance on what we expect from firms on cybersecurity issues and data safety and that kind of thing. i'm sure we can do a better job and committed to trying. >> i know that's an issue that financial institutions in particular sort of write in the cross hairs of this because the amount of personal data that they hold and the risk that is there. they're an easy target so we want to make sure that we work on that issue and work with you. you know, you are in a position where can you harmonize the rules and regulations i think easily with th

will we have a chairman powell part will we had a chairman? powell put? matt: no.. >> yes. david: it will have a much higher strike price. jonathan: it has been great to catch up with you. that does it for us from new york city. we will see you next friday at 12:30 p.m. new york time. 5:30 p.m. in london. we will bring you those comments and reaction with a full round table we finally hear from chairman powell in his semiannual testimony. this was a bloomberg "real yield." this is bloomberg tv. ♪ . ♪ david: you now have had to follow bill gates and steve ballmer, two legendary figures. satya: look, the clear message was don't try to be like us. david: did steve say if you do this well, we will be happy? satya: look, if you do well, maybe you will have another job. if not, you won't. david: has the result of having empathy made you a better ceo? satya: my pursuit is -- is there is a growing sense of empathy for people around me. david: do you get a standing ovation for what you have done? satya: no, i get a lot of people asking me, saying, hey, come and fix my compu

i mean, what would be successful powell -- success for powell?t in front of the public, so to speak. the resulting market action -- what would be success? mean, coming out, except he has been at the fed since 2012, and the governor since 2014, but of course, for the general public, it's going to be his debut. i think success would be -- we have seen the markets calmed down a little bit, getting used to pricing the tenure towards 3.5% over time, and i think if he is able to communicate a message of stability and that sort of direction of interest rates, then that would be seen as a success. yvonne: how would you position yourself equities that -- go ahead. kieran: i was just going to say, and not getting dragged into any sort of political discussion, which tends to be the bent of some of the congress. yvonne: how do you position yourself in equities ahead of this testimony? we have seen some stabilization in the bond market, but volatility is quite elevated. is it soldiers and where equities go, by where the tenure goes? kieran: certainly, that's

powell had to say.rsonal outlook for the economy has strengthened the my personal outlook for the economy has strengthened the since december. each member of the fomc is going to be writing down a new set of projections and appropriate monetary policy as we go into the march meeting. what we are seeing is incoming data that suggest the strengthening in the economy. we see strength in the labor market. we see data that in my case, will add confidence to my view that inflation is moving up to target. fiscal policy changes can have an effect. seen in the policy. the flattening of the yield ofves has been a precursor recessions, but largely because in prior recessions, that had to raise rates quickly to hold inflation down. that is not the situation we have now. guy: the fed chair speaking on the hill yesterday. good morning bob. should i count on four hikes now? bob: yes. the outlook for the u.s. economy, close to 3% growth this year, i think, if i am wrong it might be slightly over 3%. the probability of

powell. appreciate that. let's talk about what mr. foster was talking about. this is wonderful talking about the national debt. this is $21 trillion. mr. hensarling is careful to put up it up every time we comb here. i tell you it makes my belly sick. other folks in last administration mr. powell, this is no big deal, bruce. $21 trillion in national debt. i used to be straight treasurer in maine. we knew how to balance our books and spend only what we took in. when i was there debt clock was unwinding. now we have 240, $245 billion per year interest payments on the debt. mr. powell, do you take a different tack from folks here earlier, last administration, do you think this is a problem? >> do i think -- >> $21 trillion in debt? i. >> i think we're not on sustainable fiscal path. >> i would agree with that. we can agree this is problem. with that said, sir, my second day here in congress i could sponsored, first bill i cosponsored balanced budget amendment of united states constitution to fin

we agree with what powell said about the increased strength since the beginning of the year. it looks like this fiscal package, the debt will be stimulative over the next two years. and is going to be almost as important or as important as what they've done on the tax side >> so, putting that all together from a strategy perspective what type of returns are you aiming for? if equities don't like this, fixed income doesn't like this, the dollar doesn't like this, what do you want to own? >> when we look at the overall picture, we still see strong corporate earnings growth. we see strong global growth and while the central banks are dialing back on their quantitative easing, moving towards quantitative tightening, interest rates are still low that's a stimulative environment. we think we're moving later into the cycle. it's still a good environment for missing assets we are overweight in equities. but as these returns come through, we're looking to add hedges, because we think this is going to be a much more volatile year, as, in fact, investors react to thing like powell's tes

jay powell will be okay. maria: bert mackie as soon first testimony, we had a chat in the sword of god, hello mr. bernat key. >> i think jay powell is a little more seasoned on that front. >> are there things haywire today? >> people are looking to see whether he will signal more interest rate increases. the market is looking up for. frankly, if you says three or four i don't think it that big of a deal. i don't think we'll know whether they will do for until later in the year. >> more about this coming up with comcast trying to bump up fox's deal with sky. this morning the big interviews starbucks executive howard schultz this morning. louie gohmert is with us as well. former republican candidate herman kaine is here. ken paxton is here an entrepreneur author and star of dark dynasty, misty robinson with us again. discredited program had to redo one ahead on our top story right now and that is the market surging ahead of those comments from the chairman of the federal reserve. the dow finished the day up 400

powell in charge of the fed.in his opinion come has changed since december -- opinion, has changed since december. this is the agenda. it is about michelle barnier. they are expected to adopt the withdrawal text, which will be published. we've got europewide inflation data for february. will we be under 1%? it is fourth-quarter gdp out of the united states of america. consumers are as confident as they have been since the year 2000. -- that wasld goat a while ago. here's juliette saly with your business flash. bayer said that it expects to close its deal for months and so -- monsanto later this year. the company thinks that the deal will probably be completed in the second quarter. farming a portfolio of vegetable sees has emerged -- seeds has emerged. u.s. commerce department has slapped duties on aluminum foil from china after concluding that the country's producers are receiving unfair subsidies and dumping the products in the american market. on duties will be imposed chinese aluminum foil for selling the pro

still ahead, comments from jay powell.s is bloomberg real yield. ♪ jonathan: i am jonathan ferro, this is bloomberg real yield. coming up, one of the highlights will be jay powell said before congress, and will get a fresh round of economic data, personal spending, and mario draghi and theresa may will be speaking. up, matt, wrap things kathy, and mike, and david rally from bloomberg asset-management. what are we looking for from chairman powell next week? >> i have read every speech he has given and every trans cript. his eyeis going to have on financial stability, more so than other chair people. with that in mind, even though risk today, if situation eases, that will change, and that will encourage the fed to perhaps accelerate the pace of rate hikes. that is a big that in our view it will keep flattening pressure on the yield curve. jonathan: when of our clients has written in saying he is sticking and coal. the message from us is clear, we expect yields to and lower than they are today and substantially lower as the m

powell, welcome. as you know, the treasury department is currently under going going cra and will be recommending changes to the banking agencies including the federal reserve. so my question to you, mr. powell, is do you believe that a financial firm's demonstrated pattern and practice of racial discrimination and lending should be considered during a cra examination? >> thank you, mr. meeks. so i'm familiar with that process. and i take the point of it, what i'm understanding about it, is to inquire into whether cra policies are in fact providing benefits to their intended beneficiaries. and i think we are part of that. we are providing our own input into that process. in terms of the answer to your question, i think it is currently the practice that that such considerations are considered in cra exams. >> it is currently. but i am concerned that some want to defang cra and takeaway as part of the process history as far as discrimination practices and patterns. so that's why i'm asking you, since th

gina powell, we all know her. a prominent position at goldman before, went to the trump administration, and not coming back in a different edition. jason: this is not wholly unexpected. the reason there is a joke about the revolving door in government is because it's true. thats interesting here is dean of powell went down to do a pretty important job, seemingly advising the ivanka trump because she is close to the vodka and jerod. david: i think that is how she got into it. she was elevated into a more of a national security role. now coming back to goldman sachs, it is a pretty big job, dealing with sovereign wealth funds, will be on the management committee. there she was in charge of 10 dozen women program, important program, but this puts her right in the heart of the new goldman. was a major philanthropist, and now she will be a banker. alix: i know you said not wholly unexpected, but this quickly? jason: it probably makes the most sense. you want to take advantage of the fact that she has been in the trench

we start off with the us central bank, and jerome powell, you see on your screens, jerome powell, youee on your screens, is said to be sworn in as the new chair of the federal reserve , the new chair of the federal reserve, replacing janet yellen. by nominating him, donald trump river wey from tradition, as most us presidents have chosen to appoint the same chair in their first year of power. the bbc has more from new york. donald trump's pick for the job, jerome powell, is the new chair of the us federal reserve. but why is is such an importantjob, and why should it matter to you and i? welcome at the federal reserve makes decisions that into a great scholar keystone employment and inflation in check, and can step in and protect the economy, like it did to the globalfinancial the economy, like it did to the global financial crisis. the economy, like it did to the globalfinancial crisis. but the economy, like it did to the global financial crisis. but what jerome powell does can have far reaching effects the old american shores. we are raising interest rates now because the economy is

today we welcome the testimony of jerome powell. this is the first time he appeared before this committee and will not be the last time he appeared. as the federal reserve system on february 5th 2018 for a four-year term and severed as the board of governors, 2012. mr. powell serves a the chairman of the federal open market committee. prior to his appointment to the board, chairman powell was a visiting scholar at the bipartisan policy center and a partner of the carlisle group. as a secretary and undersecretary under george bush. he worked as an attorney and investment banker in new york. he received an ab in politics in princeton and a law degree from georgetown where he was the editor in chief at the george down law journal. his statement will be made part of the record and welcome and you are recognized to give an oral presentation of your testimony. >> thank you very much, mr. chairman. >> you're going to have to hit the microphone. >> thank you and thank you ranking member and members of the committee. i'm pleased to present t

giving jay powell a break.carlet: i know they are paid by the think tank, but what do they do for the most cardiac and to go speak on behalf of brookings? are they thought leaders? posting events? michael: policy leaders is more like it. more questions on the central bank does. should they change the 2% target regime. ben bernanke has posted on the idea of a temporary increase in targeting inflation, moving up for a little while. great to talk to you, michael mckee, bloomberg's international economics and policy correspondent. comcast just throw a wrench and disney's planned to take over 21st century fox's media business. they may surprise $31 billion offer the disney ceo bob iger called the crown jewel of the package he seeking to buy from fox. manager.s is portfolio , but it startses with bob iger, that he called this the crown jewel. >> you have to control the cash flow. owning 39% is really like owning nothing. so you have this in norm is free cash flow and notice the word free here. they fill the satellite

jerome powell takes over from janet yellen as chair of the fed. it is the first time in nearly a0 years the head of the us central bank has served just one term in office. lift—off for ryanair. the world's busiest international airline is expecting to announce a jump in sales following the collapse of some of its european rivals. and on the markets, asia follows wall street's lead with heavy losses. shares across the region on course for the biggest drop for m months. today, jerome powell will be sworn in as the new chair of the us central bank. most american presidents have chosen to reappoint the existing head of the federal reserve, nominated by their predecessor, but donald trump has broken a ao—year tradition by replacing the former chair, janet yellen. yogita limaye reports from new york. president trump's pick for the job, jerome powell, is the new chair of the us federal reserve. but why is is such an importantjob, and why should it matter to you and i? well, the federal reserve makes decisions, about interest rates, keeps inflation in che

the federal reserve chairman jerome powell, jay powell, when he addressed congress, everyone wanted to find out what will the fed do next when it comes to interest rate. expecting interest rates will go up, expect at least three increases this year. people are trying to interpret if the chair believes there should be maybe more than three. first it about the economy and the economy is strong and growing. here's what he said. >> my personal outlook for the economy has strengthened since december. again, each member of the fomc is running down a new set of projections of monetary policy as we go into the march meeting, which begins three weeks from today. and so, i wouldn't want it pre-judge that. >> as i said something some people might consider somewhat hawkish. the fed chair believed although wages are not growing at a pace they would like, they will accelerate, but now there are risks on both sides. inflation in the economy overheating. >> we've reached the point where the risks are too cited and we need to keep that into account. if we do get behind in the market -- the economy does

are we going to see a powell push?ll these questions need to be answered, so let's talk about where the bond markets are going. at the moment we are expecting an interesting day and week. getally, let's move on and the first word news with juliette saly. tryinge: guy, china is to scrap term limits to what xi 2023.ng rule beyond a constitutional provision bars the head of state for more than two consecutive terms of fice, but the communist party wants to change it. it has sparked a wave of reaction on social media, some comments supportive, others critical and mocking. north korea's kim jong-un has indicated he may be willing to hold talk to the u.s., of the white house says it will see if the move represents the first step toward denuclearization. it comes after north korean delegates attending the closing ceremony of the winter olympics standing near a ivanka trump, and telling the south korean president at times should develop tween them, pyongyang, and washington. the uk's labour party has said it wants britain to s

powell will have an upbeat message today. shouldn't he with 1 trillion in fiscal stimulus in terms of gdp growth, the fed's outlook is positive. in december they were looking for 2.5% growth. our forecast is closer to 3% for this year. that will level off. less growth in 2020. this is a short boost, but for now there's going to be higher growth that's the message he wants to send to congress we're achieving our mandate, close to inflation goal, firing on all cylinders at this point >> all right we'll listen to powell closely >> how much of it is what powell says and does and how much is what other central banks do. >> we're priced for three ray hik rate hikes for the past month. all we've done in the large rate selloff is price in another rate hike >> it seems we're keying off what we see with other interest rates and other countries. that's determining our equities moves. >> we'll get more clarity from the ecb later this year and their expectations to start moving rates >> and mario draghi was in front of europe and parliame

welcome chairman powell.ou know, what's disturbing me and what's remarkable and i think down right disturb to go -- disturbing coming out of this trump administration in three specific areas that you as the chairman of the fed our chief economic balancers, shall we say, direct input on and did you know, for example, there's three areas particularly, first tax cuts of the president, are you aware that 83% of the president's tax cuts go to benefit just 1% of the american families? that's not fair at all. if they go to his budget cut, you know, who is impacted the most because of his budget cuts? it's the african american community. let me go to his dry -- terrible proposals to cut $17.2 billion away from food stamp recipients and then if that's not mean and ugly enough, they want to turn out and now stop food stamp recipients from even being able to go into the grocery stores and buy groceries, just like you and i. this is mean, man. and i -- i want you, you seem like a very reasonable person, tax cuts going to

jay powell has a different background.e have seen in some of his confirmation testimonies he is not afraid to answer yes or no it we may have awkward moments where there are some that air to fill because the answer is so quick. the code can he avoid sounding hawkish. david: can he avoid sounding hawkish? bob: at these testimonies, the chair is supposed to represent the committee. we have a pretty good idea of the committee and the staff's view from the report we got last week. i think he is going to be off this path of continued moves fed funds. there is no reason at this stage of the cycle are the fed funds rate should not be sightly positive in real terms. inflation is headed to around 2% so he ought to think about his rate being in the 25 -- 2.5% range. that is where they expect to get. they are on a good path and there's nothing we can see right now will get them off that path. his yet -- he has got a steady as you go message. he is the first time chair testimony that gets a few mulligans. yellen needed if you. just ne

chairman, chairman powell, congratulations. i know you've heard it many times but we're glad to have you here. would it be fair to say the current situation is willing to review and question decisions made by the fsb, the financial stability board, in the past. would you be willing to review and question those? >> sure. i mean, i think we always -- if fsb doesn't make decisions about u.s. regulation, they make recommendations and if we were to enact something in a regulation we would put that out for comment and anything like that could be reconsidered in princip principle. i don't think any anything that comes to mind but maybe you can help me. >> so as much as their opinions have influenced policy, there's one in particular i'm thinking about. in 2013, the fsb instructed the international agency of insurance supervisors required them to have insurance groups. there seems to be concern among u.s.-based insurers that this would be bad for the u.s. market and u.s. policyholders so many times the leadership attempts to hide behin

i want to note, powell is the one that mattered today. lot of people talking, very lucid testimony from him who knew basis points mattered we knew two or three basis points look at the ten-year as he was talking about inflation, perhaps, getting near the 2.00% target, perhaps the economy picking up later in the year we move from 2.87% to 2.91%. and the markets, take a look at the s&p 500, just slowly started to droop once again, just like it happened last week on the fmoc numbers what we're learning is basis points matters who knows what will happen if we go towards 3%. interest rate sensitive groups banks are generally up today take a look at what's happening with some of the other groups here reits and some of the other sectors, utilities, emerging markets, that's the bottom one, that's interest rate sensitive however, it's not preventing the banks from moving up comerica, zions and regions, along with bank of america and jpmorgan chase other sections of the market quietly moving up. we noticed the cyclical stocks rallied since the bott

still ahead, waters on powell.opill stick to the democrat on the house financial services committee on the new fed chairman debut. this is bloomberg. ♪ julia: this is bloomberg markets. i'm julia chatterly. scarlet: i'm scarlet fu. powell made his debut on capitol hill today, sound and up the note on the u.s. economy, signaling the central bank may review the rate hike and that inflation concerns. we are joined by maxine waters, the ranking democrat in the house financial services committee. i want to get from you, first of all, the biggest difference you saw, that you took away from the new chair from his predecessor janet yellen. >> let me say, we had chairman powell in committee today and he answered all of the questions that were asked of him, he talked about carrying on in the manner that janet yellen had done. he seemed very comfortable, and i think the members felt that he was cooperative for the most part. a lot of the questions that were asked of him were questioned that were not exactly monetary policy an

well, when jerome powell talks, people listen. wall street watching every word just a few hours ago, the new fed chairman making his debut on capitol hill testifying before the house financial services committee. markets were hitting highs, cooking along. but what happened during the question and answer session that forced almost an immediate selloff that you see right now with the dow down 157 points? adam shapiro is there, and he's got the one question that sparked the fireworks. delta airlines finds itself stuck between the nra and millions of dollars. gerri willis on how one political party is trying to punish an airline for picking a side in the hashtag boycott the nra battle. and the chief mechanic at advance auto parts says he's got to retool. ceo and president tom greco is here to tell us why the gop tax plan is actually revving up his company's turn around. he's here. plus, actress heather graham using hollywood's half magic to break down sexual barriers in tinseltown, writing, directing and starring in a movie she couldn

powell will be a good fed chairman.doesn't it bother you, art, he said an overheated economy that is economy that is growing great guns is bad for the country? >> i know it is amazing, isn't it? here again i think it will be great -- shouldn't have him seven all the time. what the heck will he say? he has hours and hours of time. david: you don't think he believes what he said? >> oh i think he has a speechwriter write that stuff. he wants to make a nice speech so it sound good. alan greenspan said everything in every speech could be said. even contradictory information. everyone confused but he did a great job as fed chairman. i expect powell to do a great job as fed chairman. i think it is a big improvement over janet yellen and ben bernanke. i'm looking forward to his chairmanship to make the country stronger. i love howard schultz he is great. but goodness gracious. we'll have better, better revenues because of tax cuts, not worse revenues. david: art laffer will not get a free cup of coffee anymore at starbucks, th

powell, for being here welcome. some of my colleagues have talked about how we are where we are, the economy is getting better we all agree with. that we'll disagree on why and how. i personally think that a lot of the goods we're seeing today is a result of the actions we took several years ago to stabilize, secure, and improve the economy. it is now working its way through the system but i'll leave that debate for another day. i also want to associate myself with the comments made by mr. meeks. i would encourage you as well to keep a close eye on the cra. i also want to take that and expand it a little bit, just a little bit more. i presume that the fed would not be interested in a economy that just worked for wall street and did not work for main street i assume that the fed would not be interested in a economy that just worked for texas and didn't work for new york. therefore, i presume that the fed has some degree of interest in not in perfect equity but at least some equitial distribution of the benefits of a

powell later on today regarding the rates.central banker, will you mirror the fed this year during 2018? have a: we at the u.a.e. fixed currency regime with the u.s. dollar, so we will much any increase in rates. manus: let's say the fed announces they will do three rate hikes this year, what is the risks to the u.a.e. from an economic point of view? have you factored in a slowdown? mubarak: i think the currency regime has helped the u.a.e. over the years. there are risks with that. with that regard, the inflow and outflow of capital, it has proven to be positive for the u.a.e. of course, we know when it comes to businesses, increasing the rates increases the cost of capital. however in the u.a.e. we have what we produce recently, which is giving a score on different individuals and businesses. is more of are risk with that entity. of capitalhe cost should be reducing based on the profile of the borrowers. is about you balancing. you have rate hikes on one side and this is your strategy to balance against that. would you consi

the advance very clear when jay powell was giving his testimony. we have the market implied rateility of four

is jay powell is coming out coming-outy powell's party to congress.o much heightened awareness of the potential he has to be in market mover. we have had so much with flash in terms of sentiment. even though the rally into the .lose -- the s&p pushing there is still a little bit of fragility when it comes to these markets. take a look at the set up we are saying. of .3%.eing gains fluctuating in the session against the euro and losing ground against others. upside of 31 points going into the open. the aussie dollar is strengthening somewhat. at 107.49.ading this is how we are looking at the bid when we look at gold. from -- some gains. we are seeing some output issues coming out of libya. ore futures.n the other big story we are watching delegated to this week is china's communist party set to repeal a will -- will rule --t would allow jinping president jinping to stay in power. not a major surprise that this has happened. many were taken aback by the boldness of this decision and the timing of it as well. could've she -- xi wielded power using other

is he going to sound like jimmy dillon or jay powell? we got to see him before congress in his confirmation hearings. this was probably going to be a lot more of the same. he's going to get up and say here's where we stand right now. we think we are seeing gradual economic growth including henry think inflation will reach our target in the next year or two, so therefore we will raise rates. that is the best case scenario. i don't tank he will hit in a low mileage or out of balance. this is the time with my senator asking about things that have nothing to do their job. what about too big to fail, global warming. it's a time for me to play up to my constituents. in terms of what he has to say, i don't think it would be market moving to keep the ball in the middle of the fairway. connell: for investors, interest rates are key. what is the line in the sand? what interest rate will totally spooked the markets and asset in the backdrop of the goldman sachs report that essentially said equity prices could plunge 25% if the 10 year yield is 445%

jay powell prepares his speech on capitol hill. winning the party, allowing him to stay in office indefinitely. haidi: blue skirts on fire today is earnings come in ahead of targets. himself, o the man mark vassella. this is bloomberg markets asia. ♪ .ishaad: that rally continuing we have treasuries and focus. goldman sachs making the call about what could happen if .ields go up to 4.5% looking unlikely at the moment. but who knows. jay powell, two testimonies on capitol hill. highly cognizant of global markets. he would be aware of the significance and scrutiny over these separate days of testimony. up fory report, setting janet yellen 2.0. he will be want to be treading carefully given the web saw sessions we have had over the past few weeks. over withtrong hand yesterday pushing its 50-day price action on the friday session. where watching the opening in hong kong. got a barrage of japanese numbers coming out this week. how are we tracking so far? sophie: we have stocks across the board gaining ground at the tie ask -- the taiex

the statesmanship of a powell, not the popularity of a powell.t i saw was john. that was her predecessor in atms of being a conservative the united nations, representing the united states. i saw very amateurs attempt. nonetheless, these kinds of things, when they're made visual and the stems are made so dramatically, have an impact on the american people. i saw her doing essentially the same thing with regard to iran that how had done and i had done and others with regard to iraq. so it alarms me. i don't think the american people have a memory for these sorts of things. we are called the united states of amnesia with some reason. so we need to be reminded of how the intelligence was politicized, how it was cherry picked, how we moved toward a war that has been an absolute catastrophe for the region, and even long-term for israel's security and the united states perhaps, with the deafness and fluidity that alarmed me then, and really alarms me now that we might be ready to repeat that process. and your previous speaker on north korea, there's ano

well, when jerome powell talks, people listen.et watching every word just a few hours ago, the new fed chairman making his debut on capitol hill testifying before the house financial services committee. markets were hitting highs, cooking along. but what happened during the question and answer session that forced almost an immediate selloff that you see right now with the dow down 157 points? adam shapiro is there, and he's got the one