chairman powell: yes. sen. warren: good, i appreciate it. the next step is that a third party must implement these plans . will you commit to making that independent review public? redacting confidential supervisory information that is necessary? the public deserves a chance to understand how wells is working, to fix the mistakes it has committed. chairman powell: i cannot make that commitment without discussing it with colleagues and staff. i will look into it. will you urge your colleagues to consider making this public? chairman powell: if it can be made public -- sen. warren: i'm fine about redacting confidential supervisory information, but my view here is that the american public, given the wealth of study, the american public has a right to see it. and of those customers that were cheated have a right to see whether or not they are actually following through on their promise. you can see why some people might lack confidence in that chairman powell:. i will look at that -- in that. chairman powell:

or did powell win the masses? since ben bernanke took over, it has been about trying to create consensus well at the same time everyone having slightly different views. jerome powell didn't really talk about that. his communications policy seemed to extend what ben bernanke and janet yellen did during their tenure. mark: kevin, just coming back to tuesday, from what you have heard, how did the white house take the fed chairman's first testimony to congress? they liked it. i was speaking with a source before coming on, who noted that this pick, buy yes, he doesn't have the traditional background that other folks and other fed chairs have had, for the large part he has been a consistent successor to the fed chair yellen. with the exception, has mike mckee noted, regarding inserting his own personal thoughts on the economy. , but onumpian, and away the flipside of that i think he has been greeted warmly by republicans in all factions of the party, including the more conservative faction of the tea party, which to som

chair powell: it's hard to say. it would take -- that is well above almost all estimates, current estimates of potential long run growth. it would take significant increases in productivity and labor force participation to get there. reporter: bloomberg news. obviously you guys reduced -- your invees the slightly. if you continue to see job ains around 200,000 a month. pretty sustainably moderate wage increases. at what point will you question whether are you constitutional lever overshooting full employment? if you start questioning that how will that impact policy? chair powell: i guess i'd start by saying that the natural rate of unemployment is not something that we can observe directly. a wide at it wide -- at range of indicators on that, 15 or 20 at least. and also i think we all understand that any point estimate is surrounded by very wide uncertainty bands. rate actual unemployment has declined from 10% to 4.1%, the committee's median estimate of the natural rate of unemployment has rate has declined also de

powell came through as we anticipated. straightforward and clear. jpmorgan writing powell's first press conference was crisp, uncontroversial and perhaps a bit boring, which may count as a success. let's get back to monetary policy the fed raised its outlook for interest rates not this year it was one forecast short of the four hikes, and upped the outlook to 4% by 2020. powell said he sees only moderate stability risks, and sees more growth from fiscal stimulus he wouldn't talk about the idea of it being from the supply side or in the demand side. in the words of john lennon, did powell pass the audition yields are little changed so that's probably a win.

powell is saying.e're listening for the bias, is it clear from his body language that the bias will move faster rather than slower because the risk are shifting. >> let's talk about the composition of the fed which is shifting as the chairman shifted. how important is it -- is it important at all that j. powell get a unanimous vote do you expect it to be unanimous? >> i do expect it to be unanimous because they are going to raise rates and that is what they are voting on and people like brainard and rosen are talking about the need to move faster the economic data is clear in that respect and i would add that some of the people have begun to worry about things like financial stability, is the market too high and you just had this great dose of fiscal stimulus and this meeting is not where you would encounter some dissent if he powell wants to go faster or stop the process, that is when it is becoming more -- >> and the market has settled down and pulled back from the pace in january. >> that is right.

the dow down 4% on the month powell is back on the hill and macro data and futures have improved europe still red 10-year close to a three-year low at 1.5 our road map begins with eyeing another day of losses. will powell move the market again this morning >> plus, it's been a tu multiuous 24 hours at the white house. the president's tweets are sending steel stocks higher. >>> jim spoke with salesforce's mark bennyoffand mark plank last night. two important interviews as we enter the first trading day of march after the first month for the dow and s&p since 2016 and in an hour fed chairman powell will return to capitol hill and appear before senate banking to testify on the committee and monetary policy. markets of course sold off after powell's appearance on tuesday when the upbeat economic comments sparked fears of a faster pace of rate hikes.

powell: do i agree? >> yes, black unemployment has generally been twice that of white unemployment. >> i think that is what the numbers would be. agree question archives yes just i agree. it is a true statement. nvidia'sagree that discrimination also exists as he announces america question mark >> i would. >> do agree when we have that opportunity to test, that we are found that invidious discrimination exists in lending question mark >> yes. is anagree testing effective means by which we will can acquire empirical evidence necessary to show that discrimination exists? >> i do believe it is used in that way, yes. wouldthen mr. chairman, you support legislation to help us acquire the empirical evidence to show this exist so we can do something about it? charges promotion of full employment. i take that to mean not just full employment of white people. i take that to mean for everyone. at some point, black and employment has to be addressed because it is chronically twice that of white people. we have used

is it powell-related?s there that -- an attempt to bring out some sort of powell put question mark let's go to singapore, mark cranfield joining us from the mliv team. it was an ugly close yesterday in the states. happy atd morning, not all if you are an equity investor. in february some of the worst days that we saw in asia equity markets were the day following a nasty close in america. not good at all. it is not bode well for the session coming up. what people are doing as they the rate curve. now considering the possibility of for rate hikes is being a serious thing. it looks like mr. powell will repeat that today. there is no reason he would backtrack. treasuries have not moved a great deal since he spoke on tuesday so he should be comfortable with that. to make thets need adjustment. if interest rates are going up 100 basis points that is not something they were prepared for. we will see a bit more adjustment, higher volatility, something we will have to get used to. it is not is up but really extreme

julia: jay powell the man -- julia: jay powell the man at the moment.ar as hikes this year, three, some concerned if he indicates 4. the dot plot will very much be in focus. we have seen a more hawkish by price around 77 basis points for 2018 as well. what will that be after we get the statement and after the press conference? strength to the canadian dollar, to mexico, hence perhaps the united states is softening their position as far and the content requirements are concerned. if that is the case, this will be a breakthrough for nafta negotiations. francine: this is what i am looking at. we are looking at treasuries and we will be all over that for the next 15, 25 hours. this is the average and i say it's the average two-year yield china, u.s.,es, u.k., euro area, and japan. throughy, you can see the chart and we will push it on our social media platforms, for radio listeners, good morning to you. the average is at least 2% or line --% and the dotted there with me, radio, we are trying to explain, it is significantly below where it is now and that's t

hearing bynate chairman powell.art of the curve, modestly outperforming the two-year yield unchanged. 2-10bing higher, while the spread narrows for a third consecutive session. vonnie: president trump is saying there will be a 25% tariff for steel imports, and a 10% tariff on aluminum imports. president trump is saying those tariffs will be imposed. he will make the formal announcement next week. he has said at a gathering in the white house of steely and aluminum ceos -- steel and aluminum ceos -- we will bring you the playback as soon as we get it. let's get to the first word news with mark crumpton. the senate judiciary committee a hearing on school safety on march 14. it comes in the wake of last month's shooting that killed 17 people at a high school in florida. committee chairman chuck grassley said schools should be refuges of learning, freedom, and peace, not a setting for violent crime. a warning from vladimir putin to the united states -- russia has a set of new high-tech nuclear weapons that can overcome

powell. >> good afternoon. have a brief statement and then i will be happy to respond to your questions. the job market remains strong, the economy continues to expand and inflation appears to be moving toward the fomc's 2% longer-run goal. as you already know we decided today to raise the target rate for the federal funds rate by one quarter of a percentage point, bringing it to 1 1/2 to 1 3/4 percent. this decision marks another step of gradually scaling back monetary policy accommodation, a process underway for several years now. job gains averaged 240,000 per month over the past three months, well above the pace needed in the longer run to absorb new entrants into the labor force. the unemployment rate remained low in february at 4.1% while the labor force participation rate moved higher. over the past four years the participation rate has remained roughly unchanged. that's a sign of improvement given the aging of our population is putting downward pressure on the participation rate and we expect that the j

powell, the idea with the transparency. i think they want to be out front of each and every meeting months ahead of time to let everybody know if this continues and the strength we're seeing and the economic situations here and around the world, they're going to continue to act the way they have. >> want to remind you to keep it here for the fed's decision on interest rates followed by powell's first news conference i. begins at 2:00 p.m. eastern time. over to sue now who has the headlines for us hi, scott. indeed i do. here's what's happening. in chile today, steven mnuchin said the u.s. will consider reentry into the trans pacific partnership once it accomplishes other goals. comments coming after he defended u.s. trade policies at this week's summit in argentina. >>> justin trudeau says he remains optimistic his country will strike a good deal on nafta despite time pressures the u.s. and mexico are facing with their elections. >>> the european union has conditionally approved bayer's $66 billion acquisition. both compani

we'll listen closely today to see how powell looks at it guys >> okay.k you steve liesman. as we of course watch chairman powell focus on rising interest rates here in the u.s., its impact on, for example, the housing market joining us now is the ceo of zillow spencer, nice to have you in the house. >> great to be here. >> let's start off on that macro point. we have changes in mortgage deductibility under the tax code how do you see the impact on the macro housing environment? >> housing still is very, very hot. the big picture is home value has decreased 25% through the recession. they're back now 5% above the last peak. home value is appreciating 7% year over year it's going to slow though. we're forecasting about 3% year over year appreciation for the next 12 months the issue is limited inventory there are almost 20% fewer homes available for sale in the starter home category than a year ago 10% fewer homes overall. the issue is there are just millions of homes missing from the housing stock, homes that were not built through the recession. so we nee

jay powell will deliver day two of his semiannual monetary policy report.s time he'll appear before the senate banking committee beginning at 10:00 a.m >>> a lot of economic data on the docket weekly jobless claims, personal income, construction spending. >>> and the auto sector in focus. car manufacturers will report monthly sales throughout the morning. >>> the big question is does jay powell see the need to modify or slightly walk back this perceived hawkishness he had a couple days ago. it's not clear he would want to do that. besides that, the ism number will be interesting. you had a bit of a soft patch in some of the macro data. >> something to watch. mike, fun hour with you. that's it for "worldwide exchange." look at the futures, we are lower on the first day of mah.rc "squawk box" is next >>> good morning for the bulls, good riddance to february the dow fell more than 4% in the month snapping the longest winning streak in 59 years. >>> in earnings news, get ready for today's big retail reports we have kohl's, best buy, nordstrom and the gap. >>> a

the question is what is powell going to do here the hope for for the bulls, powell is less hawkish thanot of people. with the inflation expectations so low now, the risk of the fed will be a policy error by being too hawkish and tanking the m k markets and bulls are hoping that powell will be as calculated as yellen was powell will do nothing to push the envelope on those issues that's the hope for the market this is the fed meeting tlch there is a thing called fed drift. the new york staff did a people noting that the market tends to go up of the two days going into the fed meeting. it was significant this was known as the fed's drift. the market will be going up and meeting into the fed right now right on track for those kinds of gains expected dow's up, 136 points. guys, back to you. >> thank you very much >> i have to correct something my wedding was catered by jim's steaks >> bob and i are very much alike. >> philly steaks on a wedding day. >> what the hell, what did you have >> i have not been married yet >> at the british wedding, you get bacon rolls at that type >> that's fatten

. >> hi, chair powell. just to go back to trade policy if you don't mind, you said that participants today generally feeling the trade policy shouldn't necessarily affect the current economic outlook, but i'm wondering if there are fears about inflationary effects should there be trade barriers imposed. and secondly, you know, we might be on the verge of a tit for tat trade war with china wondering how that might dampen the global economic outlook going forward should that occur. >> at this stage what our fmoc participants discussed, it wasn't -- it was just that this is a new risk that had been probably a low profile risk which has become, you know, more prominent risk to the outlook. that is really what people are saying they didn't get into talking about particular -- where inflation or growth or whenever it would be. so that is not something that did come up. you know, your second question, sorry, was china >> yes in the event that the united states and china end up in a tit for tat trade war or any oth

what have we learned about understanding the reaction of fed chair powell? ms.ronov: he played it safe. it was the inaugural meeting and it was important to get through with minimal volatility. it was interesting because during the meeting, it was perceived as dovish, but in the announcement subsequently, it was perceived as more hawkish. i was writing some comments before the meeting even happened and i said i'm writing this as we are sitting a day away from fed and it doesn't matter whether it's going to be three or whether they're going to indicate more than three. jonathan: why not? ms. aronov: as long as the fed continues to shrink its balance sheet and as long as it continues on the path of higher rates, as long as markets continue to grapple with additional supply, not only from what the government is doing but also from less regulated banks, which are huge holders of the technicals for the treasury market and everything off of it are not constructive. jonathan: jim cielinski, does the argument she presents resonate with you? mr. cielinski: i think it doe

[impersonating ronald reagan] hello, general powell. this is ronald reagan.es, sir. >> 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. all right. ♪ 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 of running a private equity firm. how do you define leadership? what is it that makes somebody tick? we are here today at city college, a place that you graduated from a number of years ago. colin: thank you, david. david: why did you pick city college? colin: i was accepted at ccny. and i was accepted at nyu. and the reason i went to ccny is nyu was charging $750 a year. i couldn't handle that. family couldn't handle that, so i took ccny because it was free in because it was easy to get to and i had heard a lot about it. david: you grew up in the bronx? >> i was born in harlem about a mile from here. i grew up in the south bronx, the hunts point section. david

treasuries find a bid, receiving haven assets blows and coveted by fed chairman powell. libor keeps riding high. levels unseen since the financial crisis. we begin with a big issue for a patient fed chair powell. >> at this point, it looks like the fed has moved in a decidedly more hawkish way. >> this is really the fed saying we are going with the idea that fiscal stimulus is going to overheat the economy a bit, and we are ready to raise rates to deal with it. >> you could sort of say that the tilt to the risk is hey are , they getting behind the curve? i think it's way too early for that, and that's why you've only got only three hikes in the median for 2018. but we will see where that evolves by june's meeting. >> we thought they might just get the four. i mean, very close call. but given the other uncertainties and trade policy, and other things, jay -- mr. powell decided to take a cautious course. >> you are new to the job and you want to get through a meeting and a press conference, preferably without putting undue expectations in terms of policy shifts coming in t

powell is direct and gives ta rgeted responses.market participants are most pleased with that. if you get clear direction, the challenge of that is if the economy does not evolve as you expect then you have to go back to this hand waving. >> michelle meyer's, staying with us. join us for live coverage of fed chairman jay powell's first rate decision and news conference. that is some :00 in the evening in london. coming up, the three-month libor at its highest since a 2008. this is bloomberg. ♪ ♪ >> it is a hot topic on the street. three months libor. take a look at this chart. 3-month libor versus the oas spread. at the highestor level since 2008. does it have more room to run? what are the actual implications? michelle meyer joins us, bank of america merrill lynch head of economics. i'm concerned about a three-month libor rate at the highest since the 2008 even if it is temporary. >> you look at the outright level in about a hike and hike and a half equivalent. ing ofgests a tighten financial pressures. you want to consider the re

jerome powell is a known quantity for us.rs, he has been working side-by-side with former chair yellen, signing off on her rulemaking initiatives. powell was probably a voice of restraint in the background at the fed, but not a voice of dissent. he voted affirmatively for most of the dodd-frank regulatory infrastructure that is in place today. nejra: we talked a little bit about how the dynamic might work between jerome powell and randal quarles. what is your view on that? ben: my view is the view of the chair is most important. i think given the place that the economy is in today, chair powell will focus on monetary policy and look to raise rates three or four times through 2018. i think he will allow quarles to take the lead going after the industry, seeing what banks they supervise and feel the most important recalibrations to the dodd-frank act. ultimately, i think they will move forward with whatever chair powell is comfortable with. nejra: ben, what impact might they have? ben: he was appointed by obama. she will probab

segment powell on the body up. surprised at a lack of stronger wage growth. and sees more growth than fiscal stimulus but wouldn't be pinned down is it from supply side or demand side, which would be more inflationary in the words of john lennon, did powell pass the audition yields were little phased. that's win and stocks just down a lib from their top after the meeting. i think he would consider that a win. >> if the relationship between slack and inflation is not so tight, what -- did he give good answers to why inflation is so low and stubbornly low >> both in this one and in prior ones he's interested in this idea i mean in prior testimony that he has given whether or not this global supply chain that's out there, the amazon effect is something also that's out there. but i think he also said, in testimony, and you can see that by the way in what the fed did today. they are more confident about inflation moving back up it was in the statement today where they said you they think inflation is going to rise in co

i think jay powell is extremely conscious of this. worried about the economy running too hot, we have a trade war coming. is that going to be the push back against the progrowth tax cuts? tom: it could be. said, a trade war is never a good thing. clearly in parts of the world, it will have more than impact. concerns onhere are .n export led economy exports are up to 45% in germany. this is more of a problem for parts outside the u.s. matt: what do you think about libor rates?g every day i see it at the top of rea storiesd.st investors, markets are concerned about it, and typically a jump in the short term financing , even agnifies problems crisis. tom: that tightening in policy does signify the potential for a slowdown ahead. that is what we are facing. it is a tricky balance that jay powell faces today in his comments. he needs to be seen on top of the situation. the economynot let run away with itself. at the same time, he needs to not scare the horses in terms of the markets. anna: we are getting some news from shell. saying 67 bil

compared to baseline, jerome powell is slightly dovish. boe market expectation now that theresa may is done and dusted, a lot can happen in a month and a half. are you saying, yes, made, does carney lay the groundwork for that tomorrow? neil: that has already been happening. today's, the u.k. inflation numbers, better than expected, a lot of interest rate forecasters in the u.k. were talking about, maybe the may rate hike may be in august rate hike antedate we had good numbers from the industrial trends survey's. the metrics above the long-term average is. mark: wage data highest since 2016. neil: unemployment rate falling this by brexit which puts may on the agenda. tomorrow will be important. worth pointing out that the ftse lowest atis at its the year and has not been performing well related to the exchange rate with stronger currencies on the strange rate. cable at 140 will impact the stock market. mark: are we had a post-brexit low when it comes to the economy? have we seen the worst? projections before brexit were doom and gloom and

that came up in the question and answer session chairman powell.said they talk about it but not really in the sense of any way thinking about how it might affect their forecast, one way or the other. it will take it while before that materializes, and most of the fact of that kind of a move in a tariff war will be through indirect products rather than direct products. it will take it while to fit through economy and halftime to digest that overtime, if in fact, and i hope it doesn't, materialize. 1.7% --: the pce is at that explains the dots, they go where you can see a a lot fewer people doubting will get three great hikes this year. there's almost as many people seeing four rate hikes. there putting emphasis on their forecast for higher inflation. is it a sound forecast? bob: i don't see how they can get their, particularly if they pursue that rate path. they are arguing that the twolibrium rate is close to .75, and our talking of a path that takes them to 3.4 by 2020. that seems to be too much tightening for the kind of economy with a slow growt

chairman powell: i can't, i haven't heard that. sen. van hollen: would you be willing to get back to us and confirm or say one way or the other? chairman powell: sure. sen. van hollen: i appreciate that. in terms of the impact on banks, banks are impacted when those who have less somber protections -- target for example -- are hacked. as a result of that, the banks have to pay credit card costs directly consumers, and then they have to recoup that money from other entities. one of the things i have been focused on and the committee has talked about is trying to get the fcc to increase its oversight with respect to cyberattacks. theirally responsibilities to the schools the public in a timely manner.

it is jerome powell's first policy meeting. what will the markets learn from the language we are going to get? tariffs andts on the risks of a global trade war. are a risk.iffs what it means for u.s. and china, it is much bigger. once we start putting tariffs in place, the risk of responding and retaliation is very real. what the world does not need is a trade war. manus: -- guy: jack lew speaking to bloomberg lives today. matt miller will be talking to the bmw ceo. --he worried about the matt: i will ask him quite a few questions on that issue and the electric car range. we are a half hour away from the european open. take a look at where futures are indicating. the picture has been mixed. we see ftse futures down .2%. dax futures up .2%. the rest of the markets are pretty much flat. if you take a look at treasuries, we see investors selling off fixed income instruments earlier. we see the u.s. treasury yield at 2.89%. the yield is coming down. dropping down a little bit after a letter open in london. -- after a later open in

fed chair powell sparking market having by

jay powell is delivering the notcy of janet yellen, 2.0, 1.0.n agreed in principle to re-normalize and tried to delay as often as she could. 2017, jay powell will do the same thing. it was tightening and then a balance sheet action. there was a style difference, though. that is jay powell was willing to express his own view more distinctly. a couple of times he said this makes me more confident. the way i read the data, this is what is going to happen. he is distancing himself from the official communication. scarlet: why is that significant? doesn't mean he's trying to convince other members of the committee? >> i think it's the other way. he wants to clarify and simplify the committee communication. is tootement complicated. it is confusing. you need a postgraduate education to understand it. when i was drafting, you only needed a high school diploma. i am proud of that. the goal is to simplify the message and then make sure every participant makes it clear if they are not on that page, they are saying this is my view. the federaler it is rese

fed chair jerome powell was back on capitol hill, testifying on the economy, just days after suggesting that a strengthening o morey could lead interest rate increases than expected this year if but today, his comments appeared much more measured.es steve n has the details. >> reporter: on the second h da testimony, fed chairman jerome powell struck a more dovishtone. while he warned on day one that the economyheould ov, on day said, there's actually no evidence that it's overheating. and whit the mar worries about wage inflation, powell seems less concerned, at least for now. >> we seey wages a couple of measures trending up a little bit, but most of them continuing to grow at about 2.5%. so, nothin that suggests to me that wage inflation is at a point of acceleration. and so, i would expect that some continued strengthening in the bor market can take place without causing inflation. >> reporter: powell stuck to his generally upbeat view on the economy and the tax cuts. he suggested they will help spur economic growth and capitalen ng along with productivity and maybe even wage growth.

this is powell's first thing as chair.question of is he influencing the forecast what is his main set of goals? we'll look at how he answers the questions. if you look at how he talked to congress, people better be prepared for him to answer the questions. art hogan was talking about that earlier. it's exactly right he brings an unusual method of talking the markets, so he actually answers questions that are asked. people have to grow accustomed to that. >> how much is on his plate? how much responsibility does he inherit that may be different from what janet yellen was shouldering? >> it's interesting. there's 100% chance priced into the markets. if he had not wanted to go today, he's kind of locked in. it's the future of the next couple of rate hikes how much stock he puts in f financial conditions will determine how fast he goes our view is is if the yield curve is too flat, it will prevent the fed from tightening. so i will be looking for ratification for that view >> if you don't think the fed will tighten unless the

what can jay powell say today that would move the currency?hort-term as a bottom so i don't think it's that big of a deal. we see in the europe and the pound as of late. some folks really like it, but i think it's not a really good idea especially not when the raise rates. you know you can do to make a dollar stronger right away as raise rates. he has to give their verbiage to make folks think they will raise and strengthen the dollar. lauren: scott shellady, thank you for joining us. we say good morning to maria bartiromo, mourning said maria. >> good morning, lauren. even a few minutes. thanks for joining us. i maria bartiromo. 6:00 a.m. on the east coast. the winning streak snapped. the dow industrials on a sour note folly nearly 400 points. the worst month since january january 2016, snapping a 10 month winning streak for both indices, the longest since 1959. features this morning, let's take a look at what's happening right now at the declines continuing. one quarter 1%. the s&p 500 for point s&p 500 for a point by the nasdaq weaker by fo

john, maybe a grade for john powell's first time at bat? and what do you think? >> i am taking the easy way out, and say he got a pass as opposed to a fail, the market took what he said in stride. there were no major flubs, when janet yellen had her conference she kind of messed up by giving more detail than she intended on how much the fed intended to go. i think sh he did all right, wel see. most important thing we got out of this meet is that fed is looking at a more aggressive pooghpath of interest rate incrs it will take the markets a couple of days to digest that. charles: greg, so-called dot plot split down middle with respect to we get that aggressiveness this year, powell did talk or they suggested there could be or aggressive after like in 2019, he went to great length in high mind to saying more long-term stuff congress change. >> absolutely, the fed is just you know real counter projecting if not guessing down the road that far, as janet yellen said over and over, fed policies is not on a preset course. path of interest rates depends on the path of th

meetingstart the policy with jerome powell.are listening for the rate decision that more importantly what we see from the fed later this year, how many hikes will there be and the saudi crumb prints meets donald trump at the white house. -- crown prince meets donald trump at the white house. let's check in on the markets. an hour and a half to go before we see the open across europe. nejra: we saw a drag coming from tech stocks. as we look across the region, the kospi and hang seng doing ok. a little bit of a mixed picture but let's talk about tech areas what we saw with the nasdaq dropped for a fifth straight session is the worst losing streak since november 2016. facebook had its worst day in four years. what we saw with the drag from takingh stocks, it is people question whether this has to do with fundamentals or the selloff will see a rebound. it put pressure on facebook shares. it has been underperforming the tech sector by quite a bit. toward its 50ing day moving average. this chart people say this is an argument that a

rosalind: j powell -- jay powell made his debut on capitol hill, signaling the central bank may review rate hike path. mr. paulo: my outlook as strengthened since each member september. of the fomc will be writing down new monetary policy as we go into the march meeting three weeks from today. >> powell was fairly strong in saying he thinks the economy is going to expand at a faster pace, and that's going to drive up inflation. he made no promises about rates. but just the implication was the fed could easily change its forecast at the march meeting. [closing bell ringing] rosalind -- julia the dow down more than 200 : points after powell's testimony in front of congress. julie: i think he was very careful in his remarks. it is my sense in terms of him , being more hawkish, the bond market had a point early on when they sold off as he painted an upbeat picture of the economy. he did say the economy's headwinds are turning into tailwinds. there is no doubt he is reassessing, rethinking the policy path, three or four. >> the pound dropping after the european union published date draft le

jay powell says there are no signs of overheating.rs plot the course for the coming year. growth and presidential power will top the agenda. ♪ betty: we saw the tariff news early, spooking the equity markets. the selloff for a third day in the row on the s&p. i want to pull up a chart, g #btv 5705. it shows declines we are seeing across all the equity indexes, whether it is europe, japan, the s&p. equityidends on these markets are starting to drop lower than what you get on the treasuries market. that is making bond markets much more attractive, which can be a self-fulfilling prophecy for equity markets. the lower they go, the lower they are going to go. that has implications for the economy and the fed. yvonne: it was interesting to see the movement in treasuries against these trade tensions we did see overnight. the 10 year yield closer to 10 -- closer to 2.8%. is there a real threat of a trade war? betty: absolutely. we moved one step closer to that trade war. more with sophie kamaruddin, who has a look at the major markets opening

i think jay powell has a lot of experience in these judgments.an experienced public service in a real professional. >> in the u.s., we just had the best consumer confidence reading i think in 17 years. a lot of people are putting that to the tax reform bill. do you think this congress and this administration is setting up the economy to continue to do better? david: i think the tax reform bill will help the economy. no doubt about it. we have guarded incremental. we already have $20 trillion in debt. at some point, we have to pay debt off, but right now people are feeling good about the economy and growth rate. matt: speaking of borrowing and speaking of rates, treasury rates, what do you think about the talk of going over 3%? i'm starting to hear doomsday scenarios from people. about what companies will do the do if it goes -- do if it goes 4.5%.% -- david: i don't think they will go up dramatically. i lived at the white house when we had rates at 14%, 15%. i don't think anything like that. we are so used to low interest rates. right now, intere

powell's rifle malfunctioned and he ran. >> the rifle malfunctioned, yes.ach person that tested the rifle, they found that it was incomplete. >> reporter: that is powell's defense. that he didn't go there to kill the officers. instead he wanted them to shoot him. he told the courtroom he wanted to decide from suicide by cop after his son got a hold of his gun earlier that morning and accidentally pulled the trigger. brandon doesn't buy his defense. powell armed himself with an assault rifle and loaded handgun, wore body armor, then ran from officers while continuing to fiddle with his jammed rifle. but the jurying did believe him. on thursday they found powell not guilty on two counts of attempted murder on a police officer. >> i could not understand it. i thought it was a joke. >> reporter: he is not alone. the vallejo police chief said in a statement, "i am disgusted and case appointed with the -- disgusted and disappointed with the verdict. i can not recall a more rational verdict especially considering mass shootings. the officer is no longer in law enf

jay powell gets right to the point and moves on.y 45nference was minutes, instead of an hour or more. what did we see? fed perhaps a bit more hawkish. yes, they do see more rate hikes in three years. maybe the doves are on the back foot now. they have three rate hikes penciled in for 2018. people saying this move opens the door to four rate hikes in 2018. let's jump into the terminal, .ng at dots you can see the previous array of dots, what is coming from each fed official. where it was before the meeting, where it is now. it was a narrow consensus first three rate hikes. there were six people not seeing that, and four seeing more. you have six seeing three, six that seefour, only two less than three hikes. a slightly hawkish tilt. you have a three in 2019 and three in 2020. urges. key, the hawkish the faster speed of hikes next year. interesting they stuck with of the three hikes for now -- they stuck with the three hikes for now. david: they stuck with their guns. kathleen: they see a lot of stuff picking up next year. that is

chairman chairman powell, thank you welcome. congratulations on your confirmation can you just explain, because i was watching a lot of the hearing in my office before i came up here and you talked about global slack a couple times. can you explain to me what that really means >> the thought is it has become over the last 30, 40 years possible to make just about anything just about anywhere technology has enabled that and rising living standards and capabilities in emerging market countries has created that opportunity. the thought is that capacity outside the united states is in a sense a form of slack. so that if you're, for example, a worker bargaining for higher wages, you're held back by this overhang you know, you can -- you can lose your job and that kind of thing. the issue is that globalization, most measures of globalization plateaued out at the time of the crisis and, yet, it doesn't -- that story makes a lot of intuitive sense. it doesn't link up very well with the path of wages over the past few years so it's someth

what do you expect from jay powell in washington dc today? going to spook the markets the way he did on tuesday? i don't really expect that. i think what spooked the markets was that he sounds different to what we have heard, not as more confident in a way. i think that will continue. nejra: is there a risk we read too much into what he is saying? the fed is a consensus, so while people were reading the hawkish tone that may have to do with him? different,does sound but when you look at the messaging, it was very much the same that we have heard before. , but the see too much confirmation we will continue on the rate hike part, and there is not more dovishness coming in. whether there is more hawkishness, i did not see that. economyes the u.s. justify it? let me put it this way. will the economy be fine with three rate hikes this year? you expect a big increase in earnings from corporate america? increase inpect an corporate earnings, but perhaps not as much as currently priced in. i think the u.s. as it is going at the moment can live with t

coming up we dive into jay powell's first fed meeting.ribe reminder to to our weekly podcast on itunes and it is called what you miss. our favorite interviews of the week. you can listen to them on audio and it is the perfect way to spend your weekend. scarlet: i think hans is a confederate this week. this is bloomberg. ♪ julie: let's return to the fed meeting, this time to the charts it joining us is matt, our chart master here. let's talk about what happens next. what people wanted to know from today's meeting from the press conference. judging by the first chart, was the read on that? wethe take away is that what got from jay powell today was a little more dovish than expected. you can see here we have the white line showing the probability of three plate hikes in 2018 based on futures. the blue line shows the probability of marked by tags, and that four or more number has been coming up. earlier today it was all the way up to 33 and 35% come it was close to becoming the model expectation for markets. jaycan see after death powell pres

bill colin powell has to show -- bill: powell has to show he's his own man. betting he will be market is betting he will be much more hawkish, maybe hinting at a fourth rate increase, but he doesn't have a lot of economic support for that. inflation really isn't there, and with retail sales collapsing, it might be growth isn't there, because growth estimates have been revised down rapidly, talking below 2% for the first quarter. joe: if you got to ask a question at the press conference, what would you ask? bill: i would ask mr. powell, how is it that you will be able to raise rates at the same pace you projected before when you thought the economy was doing a lot better, in light of the fact the economy seems to be slowing? julia: and how should he respond? bill: well, everything is subject to the data. [laughter] i am sure the response will be, we will move our policy as the data warrants. right now, there is no promise of anything. we will see inflation rising in the interim. let's face it, that is right out of the briefing book for the last six months. [la

the press conference that followed the meetings was particular as it was the first one for general powell as new fed chair pauwels message is that the fundamentals of the u.s. economy are on a positive course the job market remains strong the economy continues to expand and inflation appears to be moving toward the form sees two percent longer on goal the quarter point rise is the fourth in the span of a year and it continues the fed's move away from a recession era trend of cheap borrowing to encourage stimulus another rate increase was widely expected by markets although some observers wondered if powell might speed up the timeline of bringing rates back up power replaces former chairwoman janet yellen following his nomination by president trump last year but as powell made clear the latest rate hike continues the work of his predecessor is gradual process has been underway for more than two years and it has served and should continue to serve the economy well. and the board is unlikely to change course soon two more quarter percent hikes are expected this year. and of course the financ