about powell's life. so here is john. [applause] >> first off, i want to thank barbara for the wonderful introduction. writing is sometimes hard and difficult sometimes a lonely life but we can't do without such wonderful supporters as you and also i want to do it throughout to politics and prose. thank you all for coming and supporting this independent bookstore. it really means a lot. so f scott fitzgerald famously wrote, can everybody hear me in the back? f scott fitzgerald famously wrote as we all know that there are no second acts in american lives. it is fun to quote - that of course because will know examples of people who have reinvented themselves. but i know of no better example of self invention then john wesley powell. in fact, biographers, myself included, have struggled in the aspect of this extraordinary 19th-century american who seemed to live so many different lives. soldier, explorer, geologists, federal bureaucrat, ethnographer, visionary.one historian, several decades ago said his impa

they support powell. his brain and formaldehyde and it's one of the greatest jokes i think he had on anybody. he bet on his buddy who would later go on to run the national geographic society that his brain was bigger. [laughter] which of course could have been once they both died so he predeceased mcgee and they kept his brain and then mcgee died and powell's brain was bigger. [laughter] but i think that he had the last laugh. [laughter] john, great presentation. i have a simple question. did he have any descendents and if so, have they commented on your up to book six >> they have some sides and his wife, emma -- i had a heckuva time. this is one of the sadnesses of the book is that my researcher and i went out of our way to find out more about his wife who's a very interesting character and can't find anything. powell's best friend, the fellow he bet his brain size on disk in a theater that was kind of traditional by throwing away his personal letters to kind of keep the loose ends of things and i can't

one of the things we didn't talk about are things that powell didn't talk about.ks he cited before, talkedabout the yield curve which we talked about this morning, the yield curve coming down to the 19 area there, below 20 first time since 2007 as markets took a dovish view of it didn'tmentioned that as a risk didn't mention risk of contagion from turkey and other emerging markets, not an issue he spent any time with. i think pointedly didn't take the opportunity to say anything back to president trump who has spoken quite a bit about federal reserve, criticized fed policy of raising interest rates. he said we're raising rates gradually if the economy goes the way it is going. and no mention of trade. that's been mentioned several times by several federal reserve presidents as one of the risks out there. mo powell said real wages have grown slowly economic mobility declined, federal deficit on a sustainable path, low productivity are risks he did mention doesn't meanest not concerned about things i mentioned earlier but why not high on the list when he talked abou

powell's speech at jackson hole.ned that the fed chairman looks to be happy with monetary policy and does not see an overheating risk for the economy. he expects a strong economy to continue. we're getting a pop higher for the s&p 500. treasuries are unchanged. the dollar index did drop .5%. before the speech, we spoke to james bullard and we will hear his comments on the yield curve next. this is bloomberg. ♪ ♪ vonnie: this is "bloomberg markets." i'm a vonnie quinn. romaine: and i'm romaine bostick could st. louis fed president james bostic is outlining his view that the federal bank not be raising interest rates. our correspondent michael mckee that the fed should the signals -- should heat the signals from the bond market. inflation has been low, stable, and quite sluggish. it doesn't seem like you have to do too much, but if you had to, you can move pretty fast if you needed to. i just don't see the argument for being preemptive and the situation in a world where the yield curve hasn't been a factor in the last

and i think powell is playing g, just trying to like, avoid it.t want to go head-to-head with the president. experienced person and he will play it that way, too. shery: if he had never placed janet yellen he may not have had this issue in the first place. peter: janet yellen was a low rate person. powell is turning out to be not an aggressive rate hike are either. you can imagine the different choice for the fed might have actually been pushing the board of governors and the federal open market committee to a faster cycle of rate hikes. david: stay with us. we want to bring in grover norquist, founder of americans for tax reform, welcome. grover: good to be here. david: let's get the taxes down, but is there a connection potentially in this sense that the government just borrowed a lot of money to make the tax cuts possible. it is cheaper to pay it back if you have a weaker dollar. grover: i do not think that is what is going through their minds. we have actually seen growth increase enough that if it continues over the next decade, we have more

steve liesman, what did chairman ja jay powell >> fed chairman jay powell will say that gradual ratepriate, and there does not seem to be a serious risk of overheating in the economy powell says this despite going on to say the u.s. economy has strengthened substantially most people who want jobs can find them and that he expects strong economic performance to continue if that does happen, in other words if the forecast of the federal reserve at this point comes to fruition, gradual issuance of the funds rate will be appropriate he says the fed will do whatever it takes in quotes, if the inflation becomes unanchored but he goes on to say, there is no clear sign that inflation is accelerating above the fed's 2% target he does see some risks out there to the economy let me go over what those are. he says real wages have grown slowly, the economic mobility has declined and the federal deficit's on an unsustainable path and he did say that it doesn't look like monetary policy will change any of the conditions out there. with with a history of getting certain critical things wrong, like t

soundingd chair powell weaker.g around again, people realize that the u.s. economy is the only economy that is here to hike sequentially. i think you will see the dollar tree become popular again. yvonne: we did see jay powell -- you mentioned a little bit about there is no clear sign that inflation is accelerating past 2%. the risk factor you mentioned at tom, when he can to u.s. housing , abroad as well, to what extent do you believe that limits the oil -- the dollar's gains. there is a question on whether the fed will have to stall those rate hikes for next year. again, questioned his -- my interpretation of fed chair powell' a speech is he is doing a good thing. instead of navigating by the to look at the data sets. it is all-time back to u.s. data. equities at an all-time high, conference still at an all-time high in the u.s. and the numbers in the u.s. market are so very light. i think the risks still point to you that willie to a hawkish fed and maybe the market reducing its long-term rate in the future. has

that theests to powell pace of gradual rate increases is appropriate.he taylor rule is important to the fed and you can have a look at the various outcomes for a taylor rule estimate. go on the bloomberg. by default, you would have a 4.95 result. there is usually an academic paper that makes some waves or gets talked about. is there anything here that will feed appetite? michael: i do not know if there is any particular paper, but the idea of what is going on in the economy, greater concentration of large super companies and most people point to the banks as a summary of what has been going on. that changes the dynamic in the economy because you have these very large companies that they are may not want to invest, may or may not need to increase productivity. the overall affect economy, wages, inflation? regulators and people at the fed are just starting to grapple with this and this is a good opportunity for them to get their heads around what we know now and plan to the future. we had somebody the other day who said this is a conference about what the

who's in charge of the fed these days powell all the president raising rates is the issue in jerome powell says he'll hike them if need be. and the e.u. is all spinning a little uneasy about all the chinese money used to prop up portugal. this is your business update on how to humphrey in berlin thanks for joining me a tussle full control of the u.s. federal reserve jerome powell is in charge but donald trump hasn't kept quiet as most presidents would about his disdain for interest rate rises but powell isn't taking it lying down that's an annual gathering of central bankers in jackson hole wyoming the fed chief signaled that he expects to continue raising interest rates if the american economy remains robust powell also said that the fed needs to balance maximizing employment with keeping prices stable. so let's bring in our financial correspondent at the new york stock exchange jose jose luis the arrow has a it seems that powell is resisting pressure at the moment can we then take it more hikes all coming. absolutely helen and investors thing two more will happen before the year and prob

jay powell, trade, venezuela. of course would he be pardoning anybody that of course has been charged and that happened last 24 hours. joining me, bring in fox news contributors, jason chaffetz, doug schoen, cio for kingsview asset management scott martin. get to all the things we talked about. scott, i will go out on a limb be. i wanted to hear what you said about the criticism of jay powell fed chair. he gave the reuters interview earlier this week. he criticized what powell was doing. they haven't talked, or met since powell took position of fed chair. i found that fascinating. >> i do too. there could be some set-up here. there could be some interplay that we don't know of yet, as far as cheryl, maybe the president trying to set up the fed for what, listen, is inevitably going to be an economic slowdown. we're in the longest bull market we've seen in history. there is likely going to be a fall at some point, right, based on timing of everything. so maybe the president is trying to set up the fed to say, hey, i

powell says he'll hike them if necessary. working women at the new york stock exchange could there be a new wave of competition for all those made in suits. and unions in africa stand up to chinese construction companies accused of exploiting their work has. been physical and let's do business it seems like they're both fighting. control of the u.s. federal reserve drug power is in charge but don't trump hasn't kept quiet as most presidents would about his distain for interest rates but powell isn't taking it lying down at an annual gathering of central bank is in jackson hole wyoming the fed chief signaled that he expects to continue raising interest rates if the american economy remains robust powell also said the fed needs to balance maximizing employment with keeping prices stable let's bring in our financial correspondent in frankfurt he is very interesting watching these two having these indirect a very public squabble about how to run an economy especially when trump was the one who had and power wasn't me. yeah exactl

we have comments from president trump around jay powell. the big picture, moving equities is all around trade talk, and jackson hole, looking forward to that at the end of this week. a lot of big picture stuff to talk about. the all-star market is down by under 1%. .hat has been weighed down critical bringing down its global growth estimates as a result. let's talk about what president trump had to say. this is the bloomberg dollar index down by 0.3%. reacting toollar what president trump had to say. he has complained to wealthy republican donors that jay powell is not the easy money fed chair that president trump had expected apparently. on the other side of that, euro strength, we put the euro in 1.1529 is where we trade. trump says europe and china manipulates their currencies. coming up on the u.s. trading session, things look flat. as we had to the united states, s&p closed 15 points away from a record. tomorrowe celebrating the longest bull market in history? the ceo, wenzie will hear more from him. we played a clip in the headline, a

apparently behind closed doors so told some people that powell is not the fed chair he had soured he wanted powell to be a provider of cheap money but now this guy is raising rates twice actually already and he's finding more apt to rate from something like two and a half percent so two more rate hikes this year one rate hike at least and then on on the record and interview with the white house term said that in other countries and economies the federal reserve banks would do more to have their leaders and the economy trample on one thing to look good to be perceived as a president who's helping the economy grow even if it's at the cost of rising inflation the facts in the meantime once a stable economy that is not overheating so i guess these two sides are going to have a hard time coming together and i know right we've certainly been hearing about what troll wants and has to say on the matter but we do know of course that jackson hole is coming up we'll hear more from powell and what can we expect him to focus on sophie. oh powell was going to talk about monetary policy in a changi

jessica: president trump is said to fed chairman dave powell -- that fed chairman jay powell hasn't beenolicy maker he is expected. he made the remarks at a fundraiser. the fed has hiked five times since the president took office, including twice this year. he criticized powell saying he was not thrilled with rate increases. plannedng trade wars for the coming years. beijing slapped a tariff on american employees. that's bringing prices down and compelling farmers to lower harvest. the bank says that could mean a fall production of 7% over the next four years. the council disagrees with that view. strengthen -- yuan strengthened for the third day back of an the weakening dollar. the yuan's recent advance follows a slump of 6.6%. policymakers are seeking to limit outflows as liquidity tightens. sentiment toward corporate bonds has nosedived. of fund managers says a proportion of those with 20%ish outlooks has gone to from 63%. ofrs are at 63 percent respondents, more than double the number in july. there may be trouble after a recent five-week fizzling in the credit market. global news 24

five at 5:00 president trump slamming the federal receive saying he's not thrilled f thrilled at jay powell for raising rates. >>> the epa rolling back major environmental regulations on coal plants. >>> microsoft out with a big warning about russian hackers ahead of the november election. >>> and beating the street our series continues you'll hear from one fund manager crushing the competition thanks to his big bets on streaming video, tax returns and energy drinks. it's tuesday morning, august 21st "worldwide exchange" begins right now. ♪ >>> good morning welcome from wherever in the world you may be watching. good morning i'm brian sullivan it's another big green on the screen kind of day nearly everything we track closely just for you in the morning is higher today. not a lot but rising nonetheless. dow futures up 48 points the market looks to make it seven up weeks out of the past eight. long way to go, but still we're on the right track tomorrow may be the unofficial celebration to mark the longest bull market ever for the s&p 500. a lot of people talk about the dates, but it's been a

powell at jackson hole.igroup sees the rest year in a decade for its asia equity unit and trump gets the fire sessions after the elections. for now, let's get the first word news. -- in australia, scott morrison has been sworn in after ruling liberal lawmakers voted to oust malcolm turnbull. earlier, he said he will consider appointments to his cabinet over the weekend as the government attempts to boost its flagging poll numbers ahead of an election due by may. >> today, our team needs to look after the events of this week and how that is impacted on them. they are going back to they are electric, going back to their families and will listen and bring things back to us. where there needs to be changes, they will be made. where there needs to be continuity, that will be maintained. >> u.s.-china negotiations have wrapped up with no major progress, setting the stage for further escalation of the trade war. the conclusion of talks came hours after beijing and washington rolled out their latest round of tit-for

what have we learned from chairman powell today?ichael: we are going to seek the fed raise rates in september and probably in december. he made the case there are people arguing the fed should move faster because the economy is picking up speed. there are people who make the case that with no inflation, that could move at a slower pace. he picked the middle route and says gradual rate increases is justified at this time. no indication he would change. no list of problems out there that we saw in the minutes that might influence him. it was this is what we are doing. jonathan: a beautiful jackson hall with michael mckee. thank you for joining us. joining me in new york city is matt hornbach, subadra rajappa and coming to me from atlanta is rob wldner. great to have you with me. it seems like it is chairman powell saying more of the same at the same pace. subadra: the message was one of caution and gradualism. thus far they have been hiking once a quarter. there is no rush to squeeze in the a lot of hikes over the next coming year. i

." ♪ jonathan: fed chair jay powell forging ahead with interest rate hikes.resident trump telling italy that america is willing to buy italian debt. one of the best-performing pockets of fixed income this year. fed speak in jackson hole. >> we ought to be moving toward neutral, which means it three or four increases over the next nine to 12 months. i think at this point moving in september and december is consistent with that path. >> from my point of view i would rather not recalling rates accommodate of right now. the structure of rates is lower and therefore i think we are at neutral or close to neutral. >> based on what i see today i think two more rate hikes this year could be appropriate. >> the case for raising interest rates is pretty compelling. we have an economy growing above trend. we have low unemployment and inflation that basically our goal, at 2%. >> there is no reason to challenge the yield curve. >> i would remind you, this is not our objective, to manage the yield curve. we use it as a signal for what it tells us about a policy path. jonath

peter: i do not think trump will be satisfied but i do not think powell is -- powell cares.f the the metaphor stars, navigating by the stars, owls dish our star being the natural rate interest rate, the fedstar being the -- the doesn't -- when you are a sailor out at sea and you look up at the stars, you know where the northstar is an you can navigate by the stars. he is saying when it comes to economics, the stars are moving around in the sky and you are trying to captain the ship without having a firm guidance for where you will go. david: you can always put one more in, charybdis. we do not know where the neutral area is. does that give us some pause? gina: i think he suggested we do not know where any of these so-called star variables are, and that is a reason to be cautious. when jay powell talks about aution, what he means is gradual path forward on interest rates and he is not defining what that means in the longer run. example of perfect jay powell being a two-handed economist, which is ironic because he is not an economist. .avid: he plays one on tv let's go back to

visit ncicap.org >> coming up, jay powell forging ahead with grad way sbrate hawkeyes. president trump reporting that america is willing to buy italian detriment and cracks appearing in one of the best performs pockets this year. we begin with this. fed speaks in jackson hole. >> we ought to be moving toward neutral, which means three or four increases over the next 9-12 months, and i think at this point moving in september and december is consistent with that path. >> from my point of view i would rather not be calling rates accommodative right now. i think the whole structure of rates is lower. thorough forei think we are at neutral or close to neutral right now. >> i agree the economy is doing well. i think two more rate hawkeyes this year could be appropriate. >> the case for raising rates is compelling. we have an economy growing above trend, and inflation at basically our goal of 2%. >> there is no reason to challenge the yield curve at this time. there is no reason. >> i would also remind you this is not our obtive to manage the yield curve. we use it as a signal

he also commented on the chairman jay powell, trump did.sive than he would have hoped in raising rates. copper prices hanging above $6,000. david: tj maxx just came out as you were talking. $1.77.s per share of up 2%. they took the full year earnings per share and guidance of. they had good news out of tj maxx as you are speaking. -- guidance up. julie: they have been a perennial high flyer in retail. here is the interesting situation. macy's, kohl's, rallying big this year, both of which selling off after earnings. year, close tos record yesterday, up 35% year to date. still up premarket because of the big beat. kohl's is a sharp contrast. the second quarter, earnings beating estimates but the stock is falling in premarket trading. perhaps expectations were running even higher. david: a quick review suggests they were up across the board. julie: tjx. david: they also took their full-year forecast up, second-quarter net sales beat highest estimates. they got every single one of them green. right now, premarket, almost 5%. we areese reports,

jay powell says the u.s.conomy is strengthening substantially but could the president's trade policy for would off course? a report from jackson hole coming up. investors are talking about income capital. what it means for business. let's get a check on the averages. we have seen the nasdaq at a record today. it is just off as high. s&p 500 up more than .5% higher. the dollar index dropped after fed chair jay powell's speech. 95.13. as for treasuries, we saw a little movement at the front end of the curve. -- 10-year it is below 20 basis points and staying there. we will continue to keep an eye for the rest of the week's trading. canada taking notes from the art of the deal. the prime minister says he will not settle for a bad nafta deal. trudeau was encouraged by the u.s. and mexico but said he would only sign a good deal for canadians. and mexico the u.s. will continue in washington through next week. canada has set out negotiations the last several weeks. at the officeic of the u.s. trade representative in

he criticized powell saying he was not thrilled with rate increases.ck says it saw significant second-quarter slowdown in china's economy after analyzing a wide range of data. the fund managers cam -- cios told bloomberg the pullback was more visible in alternative data dan the government's official pmi rating. send a trade dispute has played on sentiment but the dead enough shows stabilization. but maybe the conclusion here is that overall fundamentals seem to be not bad. slowing down a bit, but not that bad. for domestic chinese companies in the second quarter or how global companies think about china. jessica: the yuan strengthen for a third day in a row, rising to on thehest in a week -- back of the weakening dollar. its recent events has trimmed it slump since mid-june to around 6.6%. that's on science policy are seeking to limit outflows in offshore liquidity is hiding. last ofas completed the his three bailout programs but still has an enormous task ahead. the essence stock exchange and run index has risen from this year's low in august 2016 but

you served on powell. you is greg his remarks as a perfect balance on rates and inflation arguments. had you see his statements as setting the stage as monetary policy? >> powell's tenure has been extraordinarily good for the market. a very clear, very concise, unambiguous language. we had a clear message from the fed last week. signaling that the fed is on course to raise rates at least twice more this year. at most, twice more this year. open as the fed left it to what happens after. that is such a good message for the markets. after three months when the markets are -- and there is this concern of higher u.s. rates, tightening financial conditions, widening the growth gap between the u.s. and emerging markets, creating financial volatility and stability at a time when expensive,are inflation is not really a runaway thing, which means a low volatility rate cycle can continue. no panic on 10 year yields means no panic. that is the best gift powell can give on financial markets. manus: it is almost a symbi

lauren: today all eyes on fed chair jarome powell. ahead of that futures are higher across the board. dow up 52. cheryl: in europe stocks higher on u.s.-china trade talks, right now all indices in the green. lauren: nikkei in japan gaining about 1% and shanghai in china up fractionally. cheryl: more bad news for elon musk. fbn:am begins right now. ♪ ♪ lauren: good friday morning, 5:01 a.m., i'm lauren simonetti. cheryl: good morning, i'm cheryl casone. lauren: hurricane lane burying down on hawaii on what would be the biggest storm the state has seen in two decades. cheryl: ray in honolulu with the latest, ray, good morning. >> hey, cheryl, lauren, calm thursday in honolulu, we saw one of the most gorgeous sunsets people have ever seen but in an hour and hour and a half the wind start today pick up. many people in hawaii are feeling the storm's effects, for instance, right now a flash flood warning is in effect for parts of hawaii's big island after more than 20-inches of rain fell there in less than 24 hours, streets were flooded and

the president actually complained that powell has been a chief money fed chair -- tell us exactly whate said. >> we have heard complaints by twitter and his own economic advisers including larry kudlow, that he does not like the rate hike path jerome powell has put the u.s.o n. on. but now these remarks to a group

powell said the gradual rate hikes were made appropriate. so no change outlook for the market he says there does not seem to be any risk of overheat wrg which kind of led to market to say you know what, i know what the fed is going to do and powell said the economy has strengthened substantially, and maybe more importantly said he expects that strong economic performance to continue. the fed will do whatever it takes on inflation, both if it under performs or overperforms that's a new use from the phrase of the cries era, doing whatever it takes now, it was taken dovishly but there was some sense people who saw it more hawkishly, and that was the statements on excesses in the run up to the past two recessions, destabilizing excesses appears in markets rather than inflation. where would you look beyond it well, you would look into financial markets for that what he does about that, unclear. take a look how it reacted at one point during the day in the wake of his speech, it's still below 20 it had popped up a bit, but now it's back down and 1

jerome powell is in charge. demo trump has n not kept quiet about hihis disdain for interest rarate rises. powewell isn't taking it lying down. that is the annual gathering in jackson hole, wyoming. the fed chief sayays he expectso contntinue to raisee interesests if t the american economy remais robust. powell also said the fed needs to balance maximizing employment with keeping prices stable. so, let's bring in our financial correspondent at the new york stock exchange. jose, it seems that powell is resisting pressure at the moment. can we take it more hikes are coming? jose: absolutely. and investors think two more will happen before the year ends. the next one will come -- after powell's speech on friday but 68% of the market also sees an additional 25 basis point increase by december, contrary to president trump's desires. the chairman of the fed said in jackson hole, hikes in germany to the current stability. bu-- hikes contributed to the current stability. there are no signs of inflation. monetary policy

what have we learned from chairman powell today?e are going to seek the fed raise rates in september. and probably december. he made the case their people arguing the fed should move faster because the economy is picking up speed. their people that make the case that with no inflation, affected move at a slower pace. he picked the middle route and says gradual rate increases is justified at this time. no indication he would change. theret of problems out that might influence the moves. it was this is what we are doing. jonathan: a beautiful jackson hole with michael mckee. think you for joining us. joining me in new york city is h,at horn back -- matt hornba subadra rajappa and!. .-and james rogers subadra: the message was one of caution and gradualism. they have been hiking one. there is no rush to squeeze in the a lot of hikes over the coming year. i think they will be very cautious. if more hikes are warranted, and proceed as required. jonathan: matt, they are trying to link it back to jackson hole, wyoming. there is nothing that

we are waiting for jay powell to speak at jackson hole. there is an added political dimension and flavor to what is going on in wyoming. to flag what is going on in the price of a barrel of crude because we are up by .8% this morning. , first weekly gain in two weeks. a host of factors suggesting slightly tighter supply, whether it is u.s. sanctions on iran that are pending. all of that adding up to a fairly positive week for the oil price. we are putting in the australian dollar of ours because based on our headlines, we have been vertical shift within the liberal party in australia. the continuity candidate beating off the right-wing challenge. by .5llar bounces up percent or so. it was up by .6% earlier and down by 1.4% in yesterday's session. we are ready for jackson hole. nejra: we are already waiting for that speech from jerome powell. with that in mind, i wanted to show the curve, dead simple. we continue to the relentless flattening. 20 basis points, hitting that for the first time since 2007. those. it in fresh cycle i wanted to b

he said he expected jerome powell to be a cheap money fed chairman.ioned these wealthy republican donors that his nominee raised interest rates. romaine, i'm going to bring you in. you expect some grumbling from the president. romaine: he does that. it does not mean the fed is going to be listening. romaine: let's hope not. there is a difference between him grumbling and taking some action to influence what powell does. toell has done a good job maintain that the near of independence. of independence. as long as he does that, the markets remain confident. if there is any indication powell is getting into his demands, that could raise concerns. we know how important central bank independence is to markets. it is a bedrock of our economy and that is intact. let's not worry about central bank independence. the fed has raised twice under powell, a raised three times under the former fed chair. they were keeping the trajectory of ben bernanke's idea. that was taken through by three fed chairs, all of them were appointed by republicans. romaine: there is co

mark: how does powell address the trump comments? , thatcommented on powell he is a hiking fed chairman. marcus: i would be very surprised if he reacts. mark: do you worry at all about the fed's independence? there is no doubt credibility, and just ignore the president. marcus: correct. mark: what if trump continues down this path? marcus: he probably will. februarys nominated in and the dollar is 10% stronger than it was then. you can perhaps understand why trump is coming out. for surprised he is gone this, but clearly the comments got leaked and he decided to back it up. maybe powell has some pressures on him he can do without, but mostly just ignores him. mark: one of the great stories this week was gundlach, the short squeeze. yes or no? marcus: a little bit more on the squeeze front. mark: in that range? marcus: i think we may be go a little bit lower in yield and that seems to be the trend. mark: bloomberg's marcus ashworth. vonnie: let's check in on the bloomberg first court news -- first word news. courtney: trade talks betw

we're up 139, that ticked in in after powell's comments this morning.lmost he said at one point that mission accomplished. >> the market may be reacting to fed chair jerome powell inflation stays around 2% mark, with no elevated risk going above that the chairman saying he sees no reason or does not believe in the date that he is seeing now. that the economy is overheating. but he says we need to keep looking at data. chairman powell did not directly talk about the trade dispute going on. fed presidents are at this conference. i talked with several fed presidents like rafael bostic, the atlanta fed president, companies in the third quarter are starting to hold back, wait and see with investments going forward to see what is going to happen. but they're not yet passing extra costs on customers. listen to this. >> you talk about the unemployment rate at 3.9% last july. the average hourly wages going up to 2.7% over the past 12 months. is there a point though that this trade hiccup so to speak, the trade dispute, could cause a pause in the monetary policy

>> do you think the president is happy with jay powell?'s happy or sad with him. i think he made an excellent choice and i don't know if he's complaining but saying that rates are going higher to strengthen the dollar above and yongd what he would like to see and i don't know this administration is either for strong dollar or weak collar more so a stable dollar because so much of their economic agenda is producing things in america et selling them to close the trade and balances that we have all over the place. so as the dollar gets stronger it is harder to sell things abroad. and the fact that our economy is booming means rates need to go higher and mac it hard to slow down pace of the dollar. >> the dollar is coming down this morning on those comments to reuters by president trump. but you know, we choir that higher interest rates could slam the economic growth that we've seen. particularly because of low interest rates and the tax cuts do you think that higher rates can cool off this economy? and i ask is because -- could this be defens

he apparently behind closed doors so told some people that powell is not the fed chair he had thought he wanted powell to be a provider of cheap money but now this guy is raising rates twice actually already and he is finding more apt to rate from something like two and a half percent so two more rate hikes this year one rate hike at least and then on on the record in an interview with a white house term said that in other countries and economies the federal reserve banks would do more to have their leaders and the economy trump one one thing to look good to be perceived as a president who's helping the economy grow even if it's at the cost of rising inflation the fats in the meantime once a stable economy that is not overheating so i guess these two sides are going to have a hard time coming together and right we've certainly been hearing about what troll wants and has to say on the matter but we do know of course that jackson hole is coming up we'll hear more from powell what can we expect him to focus on sophie. oh powell was going to talk about monetary policy in a changing econom

ben's here with the business and a power struggle is unfolding between powell and the president yeah it's pretty amazing stuff i mean it's obvious who's job who's got which job and what their job entails but in this case it's murky borders it seems like they're both fighting for control of the u.s. federal reserve drawing powell is in charge but don't trump hasn't kept quiet as most presidents would about his distain for interest rate rises but balance and taking it lying down at an annual gathering of central bankers in jackson hole wyoming the fed chief signaled that he expects to continue raising interest rates if the american economy remains robust that is powell also said that the fed needs to balance maximizing employment with keeping prices stable. let's bring in dana corp our financial correspondent in frankfurt it is very interesting watching these two having these indirect a very public squabble about how to run an economy especially when trump was the one who hadn't picked pal was an e. yeah exactly i mean when he decided to nominate powell and legend yet in the previous h

chairman powell made it clear it is not going to alter the plan overall, and powell is smart enough tome calling. >> you hit on something that i think is excellent what you are saying is that you don't think jay powell feels threatened by comments much further from that. you think he is taking it in stride but the president is doing himself in many ways a disservice because it sounds to me like jay powell is not going to speed through any damage caused by normalizing rates to the up side. your final thought to that comment? >> no, i think that's absolutely correct. i think chairman powell is in a steady as she goes mode now. he's ignoring the president, he's doing what he needs to do president trump has the right to have an opinion but he is not helpful, it is not strategically the right way to go about it i would just end it with that. >> one other thought while i have you, marc, a lot is put on what the kind of normal rate should be. what is the neutral rate am i too presumptuous to think with many of my peers on this trading floor that that rate will be the rate that makes the yield

to raise its keep rates two more times this year and another two times next year chairman jerome powell says he's concerned about inflation rate pressures in an interview trump said he was not thrilled with the hikes he also refused to say if he believed in the fed's independence powell said the committee will not bow to political pressure. kind of cool because in frankfurt to give us the european angle on this story now presidents normally don't criticize the fed but breaking rules it's nothing new for trump is it. well here thought some rules when you are the united states president you should not criticize the fact you should also not doubt what your intelligence people from the f.b.i. tell you also should not insult people on twitter but donald trump does not seem to know that i guess what he took over or he simply doesn't care well i guess he probably didn't really care we have heard him saying that many times that he accepts loyalty and he has been clear also throughout his campaign that he is in favor of a very weak dollar investors mostly in the united states called this latest

powell's comments, as being dovish.ndence and the latest on trade with the u.s. and china. not so much happening out of last week. we are t-10 days in regards to the $200 billion of tariffs between the u.s. and china. that is set to start september 6. -- despite the lower level talks taking place last week. more pain before we get resolution. lynn,l be joined by max talking all things emerging markets. is the pain over? we had a wrist bite of weakness last week. down 6/10 of 1%. that created more of a breathing space for these asian emerging markets currencies. is that a temporary pause? we will take a look at the impact of the trade war because the assumption is as long as it trade tensions continue, as long as the fed continues its trajectory, that they would be coming from jay powell's comments, then the dollar strength is going to be the way to go from here. lots more to come on daybreak asia. that is about it for "daybreak: australia." we have trading with a new government today. this is bloomberg. ♪ xfinity mobile

. >> passing powell. the federal reserve chairman gave his first keynote and use the chance to applaud one of his predecessors, alan greenspan. throughout the retreat bloomberg asked what they thought the ideal rate path would be. be moving toward neutral, three or four increases over the next 9-12 months. moving in september and december is consistent with that. >> i would rather not be calling rates accommodated right now. i think the structure of rate is lower. i think we are at neutral or close to neutral. >> the economy is doing well. i think two more rate hikes could be appropriate. >> the case for raising interest rates is compelling. we have low unemployment and inflation at our goal of 2%. >> there is no reason to challenge the yield curve. objective not our metoo manage the yield curve. we use it as a signal. by matt forned now more insight. the dollar deepens the selloff. bonds rising. what are you interpreting? >> two things. short-term interest rates are up , not just from the speech but the