thank you chairwoman powell -- chairman powell. the fed has prioritize public disclosure of fed activities and members of the public have benefited from that outreach and that of with-facing interaction. i am hopeful the chairman will continue to pursue this approach, as it is important for the long-term integrity of the institution and highlights the open book approach to fed policy that is necessary for long-term market stability and understanding of fed policy making. the economy over the last two and a half years has witnessed remarkable growth, and unemployment has reached lows that many once believed were impossible. republican-led efforts for tax relief and regulatory reform have supported these trends, with millions of americans policies, from those as a result of those policies, and millions more seeing their wages grow as a result of that regulatory right-sizing and tax relief. interest in rulemaking to provide regulatory right-sizing will help continue that trend. it is important to economic growth and stability for the

>> powell: "cannot" is a strong statement.w, i would say that our system is vastly more resilient. >> pelley: how concerned are you about either criminals, or more importantly, hostile nations, attacking our banking system through the computer system? >> powell: we devote very large amounts of time and resources to protect the fed, but also to protect financial institutions and the financial markets. the banks we supervise are required to have plans in place and state of the art, you , i just hit on the thing that keeps you up at night. >> powell: i would say, of the risks that we face, that certainly is the largest one. >> pelley: it's become your top priority. >> powell: the kinds of risks that we faced in the financial crisis are very real, but we know, i think, generally what to do there. cyber is a relatively new kind of a risk with nation state actors, and it's one where-- the playbook is still being developed in real time. >> pelley: powell told us about another risk, hidden in our economy. it includes an estimated half

chairman powell: i would say so. it's clear that the tax and spending policies that were adopted supported demand in a significant way last year. case that they should have some supply side effects. it is hard to identify those with any precision. we hope they are very large. the hope would be lowering corporate taxes would spur more in lowering taxes -- and lowering taxes would spur workforce participation. participation over the last three years has been a beenise upside and it has very welcome. dot plotth a new today, you've gone from two rate in 2019 to019 20 -- zero. you still show one for next year. a rate cut a possibility ? chairman powell: as i mentioned, the data we are seeing are not currently sending a signal that suggest moving in either direction, which is why we are being patient. the economy is growing about trend, inflation is close to target, unemployment is below 3%. we should watch how things evolve. on stress testing, i wanted to ask, how do you respond to criticism that the makes it lessove tran

chairman powell: good question. in our system we normally rely on tools like high capital and stress tests. our financial stability system is built on those tools, high liquidity,gh resolution planning and stress testing. we also have some tools like the capital buffer which we can employ at times when vulnerabilities are above normal , but we do rely on those tools. i would say that our banks are well capitalized, they are far better capitalized and better aware of the risks and more liquid than they were before the financial crisis, so they would be more resilient in difficult stages of the economy. >> donna, from cnn. included in the president's 2020 budget is a designation that -- is an estimate that the nations that will balloon to over $30 trillion in the next decade, by 2029. you have previously said that the country is on an unsustainable fiscal path. how alarming is that to you? and when do you begin to worry about a possible credit crisis? chairman powell: i do think deficits matter. i think it is not real

chairman powell: yes, we're. it's hard because of course the big banks are attacked, too, but they have the resources to deal with it. return to our body of regulators for guidance. we supervise the guidance. with the smaller banks it's very important. that is a way that we see that as a real vulnerability for the payment system. we have also got to be mindful of the burden on smaller banks. but it is something that we are very focused on. senator reed: are you focused on the extent of conducting red on blue exercises, i.e. seeing what's working out there, seeing where all the connectivity exists, or doesn't exist? exist, or doesn't exist. are you doing that or getting any access to organizations that are doing that? senator reed: we do table top exercises. these are led by the treasury department. this has been major focus for treasury. and appropriately so. we take part in them. there is always the feeling with the issue that you are just not doing enough. senator reed: that feeling is justified. unfortunately.

like that. >>> coming up next, jay powell on the record.iving a rare interview overnight. what he had to say about the economy and president trump. that's coming up straight ahead. >>> and later, your protection play book. what should you be doing with your money if you think that this decade-long bull run is coming to an end stick with us. ou'll tell y "worldwide exchange" will be right back ♪ >>> breaking news. boeing stock under intense pressure in the premarket following this weekend's deadly plane crash in yooet yoep ya we'll have the full late-breaking details straight ahead. >>> j. powell talking everything from the economy to president trump in a rare interview overnight. we'll break down the big headlines. >>> and betting on retail. some names to consider if you're looking for opportunity. it's monday, march 11th, 2019. you're watching "worldwide exchange" right here on cnbc ♪ >>> good morning, and welcome to "worldwide exchange. i'm courtney reagan, brian sullivan is on assignment today. i want to call your attention to what's hap

soon she'll see reminders of powell everywhere she looks.t home growing up, did you have masks around the house? >> oh, yes. there were masks everywhere. >> sounds scary. >> it was. >> do you feel like they might come alive as a child? >> oh, yeah. i would wake up in the night and thing i heard them talking, you know? and these were some pretty scary characters. and then there were others i felt were my friends, you know? some of the old movie-star marks. >> how did your dad feel about having all these masks around the house? >> he was a theatrical person, too, because he did a magic act, and he was a wonderful magician, and he would do stage illusions and things wearing the masks. and i used to be the assistant sometimes, too. i would walk out with a little tray of props and things. >> you grew up in a really fun house. >> very fun. >> sadly, in 1951, just 3 years after her mother began her mask-making apprenticeship, doane powell dies at age 69. he bequeaths more than 200 of his masks to his most dedicated student. >> i think he wanted her

will chief powell make a move to push the rally forward or pull it back? >>> plus, several big name companies sound off with specific fears about a global slowdown >>> the chips are in focus the group is leading the market up 23% in three months today micron reports the halftime report with scott w wapner starts right now. >> good to have you with us we gip with markets under pressure there is the trade issue concerns about whether a deal with china is closer or not. pete, it was all good until we got some headlines yesterday, mid day. the fed has been enough. this fed has your back >> we'll find out a lot more they talked about reducing the balance sheet and some of the changes there. what was going to be a multi-race year looks like something that will not have a single raise i think the market s have responded to well. the fedex story is bigger. you're starting to hear from a couple of ceos where they are talking about we are feeling the strains now. not just of the trade war but the slowing economy of the united states. i think that's something we got

powell, as at jay someone who "likes raising rates." the u.s.ll despite the actions of powell and his colleagues, and he wanted a currency that is good for business. the u.s. dollar was quoted lower against the euro and the yen in early asia-pacific trading on monday after the president's comments. pres. trump: we have a gentleman that likes raising interest rates in the fed. lovese a gentleman that quantitative tightening in the fed. a gentleman that likes a very strong dollar in the fed. weekhina's big policy began with senior leaders pledging to ensure stability and keep what they say is the big picture in mind. as policymakers continue with reform. the chinese people's political theultative conference set major task of the year as building a "moderately prosperous society and upholding president xi's core position on the communist party central committee." cfo facing extradition from canada as the united states has launched a countersuit. to the supremes court of british columbia against the canadian government and police, alleging false imp

we'll be listening to powell's comments. right now seems that the fed is pretty comfortable with the twoish percent pace expected for 2019 but the big question mark is where do we go from here? what does he see or what does the fed see as the downside risk? we have her several fed officials talking about the global risks but how does that translate into domestic conditions? we started to see housing lose footing. we have seen business investment moderating. consumer spending trending to the downside. there is a number of red flags bubbling underneath the surface here at home. so i do think it is a little optimistic to think the fed can be on hold, go back to raising rates a year from now. more likely the conversation is going to shift from an additional rate hike to when does the first rate cut come into play? charles: want to go down to gerri willis on the floor of the new york stock exchange for reaction down there. gerri? reporter: i was sitting with a trader has news came out and ed lawrence made his report. you had them

jay powell said interest rates could be on hold for some time.this year to zero. some are even betting the fomc's next move could be cuts. officials decided to slow the bond holdings, starting in may, before ending them in september. they also changed their growth forecast for this year and next citing trade, slowing china as its growth weight. taylor: jay powell also sounded the alarm "calling week global price pressures one of the major challenges -- calling week global -- weak global pressures "one of the major challenges of our time." the fed chairman says it may be time for the outlook for jobs in clearion called for change in policy. there is no signal suggesting either direction for me, which is why we are patient. the policy is neutral, the economy is growing trend, inflation is close to target. it's a great time for us to be patient and wait and see how things evolve. taylor: it is like we planned it, because joining me in new chiefs the bloomberg interest-rate strategist. was the big move, heading down to a 251 in the 10 year, maybe was

speaking to bloomberg, moore discussed the nomination and his view on powell and the central bank. >>lled and asked me to do it. you can't say no to the president, but i was really so -- i feel very privileged, frankly, to have this opportunity to do it. i'll have to go through the senate to be confirmed. it's a long road ahead, but he said i have full confidence in you and i worked with him in the campaign. a longtimeed, you're supporter of the president. as you say, you've got to be put through to be put into the role and accepted. do you worry that you might not be deemed independent? had an: no, i've always independent voice. people can look at my record and i consider myself a growth talk. so i think what i will really try to pursue and persuade the chairman of and work with the chairman to china to make sure america grows as fast as it can and wages rise and we have a long period of prosperity through sound monetary policy. trump has done a great job on tax reduction, deregulation. looks like we're going to get the trade deal done with china. if we have a sound monetary prices o

powell is now on the market side again.turned into somewhat of a globalist no matter what their market strategy. china's economy cratering. exports fell 30% and import fell 5%. and there is a one-day reaction and now everything is fine and people are talking about the president three to four weeks before we know what's going on with china. >> china invested non-money into their markets. when they import 6 per, i call it 2. japan is contracting. we are the best by far. i was worried we would be taken down by them, but now i'm starting to see europe is starting to stabilize. i think we go back to 3% to 4% gdp. lou: the president is confident at 3%. i'm going to follow his forecast because he has been right and the professionals have been wrong. and the fed disastrously wrong. if he had not interceded, had the 90-day nightmare inaugurated by jerome powell, do you think that would have continued? >> i complained about trump complain being powell. i am no longer complaining about trump complaining powell. i was wrong. powell was

trump said jay powell likes raising interest rates.ignaled that the fed can be -- also that he likes quantitative tightening. in other words, reducing the fed's balance sheet. now it is seen more of a tightening. what is actually going on? jay powell just said last week that they are going to announce their new balance sheet runoff. their plan to stop this run off fairly soon. randy quarles said second half of the year. jay powell said that's a big deal. he said the fed can be patient on rate hikes. when it comes to the strong dollar, trump doesn't want a dollar so strong that it is prohibited to the u.s. when it comes to the federal reserve, they don't talk about the dollar as a policy tool. it's the result of what the fed does on rates. that's another when you have to put a little bit of thought around as to whether or not it's true. it's also interesting, jay powell having said the fed can be patient, has changed the outlook in market. world infrastructure projection -- interest-rate projections, you are not sitting -- there is no c

with powell and lake mead so tell us what the last ten year. the results were that there is a shortage in the lower basin and the compromising of lake powell. those are the issues that are very apparent to us. so we went ahead to start the discussions on the lower basin what they could do with lake mead that is stable and more resilient. it is less about trying to control something we know we can and more about maintaining those reservoirs to operate them that gets the most out of it. >> thank you because as we move forward i appreciate this hearing giving us the opportunity to engage on this issue before legislation comes before us for our consideration and as you have conversations and discussions and years to come engage the conservationist and stakeholders in the broader sense because the delta is very large and is something that is incredibly important obviously to the future of the united states and my state of colorado so that would be an important part of your work so i yelled back. >> thanks to all witnesses and anyone else who has joi

they reduce the probability that both lakes powell and lake mead will drop

jay powell is saying the economy is pretty strong for the rest of the year, no recession. >> jerome powell has become the ultimate cheerleader for the economy. what he said yesterday, he came out, he's very, very optimistic in my opinion, but here's what i think. we have investors who are very very tied to low interest rates. what i saw yesterday is he did think that the economy was good but in a world where sometimes good -- bad is good, meaning he will keep interest rates lower for longer, that might have been, he might have been too optimistic yesterday. it might have given -- i'm not saying -- he might have given, he might have given some investors the thought that maybe he will raise interest rates sooner than later. stuart: i think i followed that. tortured logic. your interpretation is fine with me. okay. i'm going to give you the latest numbers on retail sales but i've got to tell you, big tech is doing very well this morning. put it up. i see microsoft up over a buck. i see, what have i got? liz: netflix up over 25% this year. stuart: that's huge. liz: in a world of negative inter

powell talked about this i know two things. first is that the fed does not know the extent to which global weakness will hurt the united states the other thing we don't know and this is something you picked up on, the extent to which the tariffs have caused companies to re-direct their supply chains and created deadweight losses in the economy as a result. i saw a study that suggest 165 billion worth of trade is looking for a new root in order to avoid the existing tariffs in place. i think those are two wild cards out there plus morgan stanley had another note today, which, by the way, this was pretty uniform across the board when it came to the jobs report on friday ignoring the top line number and looking at the wage number and pointing out the margin pressure on companies saying the only way that this ends up -- you either end up with an inflation problem which is companies passing long wages or you end up with margin problem because the money is coming >> until you get the margin pressures to ease, you can't get out of the

i agree with chairman powell.y: i see you are thinking there could be one hike in the second half of 2019. an earlier guest had a bias towards a rate cut in the third quarter. help me square the circle. mike: you have to focus on what the fed considers neutral. on the fed's perspective is as neutral funds is to 75. today fed funds is to 40. inflations picking up -- if you believe the phillips curve is not dead, the hourly earnings is good. fed seems poised to have inflation rising. one side of the mandate is looking really good and that should mean at least neutral policy which implies one more hike. haidi: are we at that inflection point when it comes to yields this week? mike: i would say we are pretty close. when you talk to people in the market, what stumps them is how little rates have moved into thousand 19. was 278, nowury 263. very little volatility. message from the ecb was very negative this past week. i suspect that makes people think we are at an inflection point. haidi: in terms of expectations it has

i don't think jay powell is.ut the more information you can get out there,the better that chances are the market discounts things more realistically than just being baseded on rumor and false expectations >> this sounds what used to be b called the full hangout route. right? >> that's a pretty radical statement and i'm not sure that was a wise thing to do, but i agree with again with our friend from jpmorgan that this is a time for them to just study carefully. they're responsible people, good people, earnest people and they're just trying to get this right. i may have disagreed with making that statement, but i don't disagree with the nonaction taken here >> when steve was going through what has changed, there were so many headlines there i was of the cynical mind set about the fed was coming down to what the markets had been expecting, to what has been on the equity sifd tside of the markets for the fed. do you think this shows they are being i don't want to say held hostage, but using the markets, being guided

despite the changes, chairman jerome powell maintained a positive outlook. >> the da are not currently sending a signal that we need to move in one direction or another. participants usually see a growth of 2%, unemployment belo, hey see inflation remaining close to target and they see growth, as i said, around 2%. so that's a positive outlook, it's a favorableoutlook. >> still the fed downgraded from 2.2% to t2.1%s year and powell highlighted risks to the economy from global developments. >> you see slowing global . grow there's no resolution of brexit, there's no resolution really of the trade talks. these are ongoing risks. we're also carefully monitoring what's happening with u.s. growth. we called that out in our statement, that the litedata that we have do show a slowdown. on the other hand, as i w mentione see the underlying economic fundamentals for growth this year astill very positive. >> finally, powell noted that downward pressure on inflation is a p majorssure on the fed and central banks around the world but no hint from powell about what the next move is up or down. he g

powell was called into court and a young assigned the home to a receiver. now powell sleeps on the floor in his son's basement. >> i want to be home with my books and my tv dinners. at home in my room. >> the receiver group said the repair costs a gofundme page and raised 75000 to help powell. he has a court date on monday but there's no guarantee he will be able to return to his home. >>> on the site they spread measles. >> a measles outbreak in the bay area. health officials say it was spread on a plane. >> a special surprise from steph curry. the shows -- shoes he presented to a girl. dearest britain. we love you. maybe it's your big hearts. your sense of style. welcome to ba100. (ba100, you're clear for take-off). how you follow your own path. you've led revolutions... of all kinds. yet you won't shout about it. it's just not in your nature. instead, you'll quietly make history. cake. beds. poetry. trouble. love! hope! and rather a lot of tea. the best of britain, from the moment you step on board. . >>> the 9-year-old girl from napa who asked steph cur

i think powell got it right. sometimes everybody wants somebody to do something and said no, we're going to stop and not do anything right now because the data does not suggest that the fed needs to do anything. they're getting a slower economic growth, inflation remains under control, the unemployment rate looks very good, i think the fed got it right. ashley: michael, what stood out to you? i guess this is as bad as close as possible to neutral, the fed can get, right? >> right. yeah, i think the fed got it right and i commend him for that and overall they're doing a good job but i'd like to hear more discussion about these amazing changes in the economy. now there's very fundamental changes going on in the economy. everywhere i look around me i see what you might call marginal cost production being replaced with a big infrastructure. if i go to mcdonald's now i can order my hamburger for a kiosk and go to amazon go, i don't have a checker and everywhere i look, the structure of production is changing from kind

is not russia it's jerome powell is janet yellin it's james cramer it's c m b. it's j.p. morgan it's jamie diamond ok then that would be a problem because then the social contract to be so obviously broken at that point they do not have the number of police cops and military to contain the outrage at that point yeah i think ultimately if you look at all of those people an institution you mentioned that's real that's day to day stuff going on going back to december jeroen powell talking with jamie dimon that not being in the news why wasn't that and why didn't the news the sort of mainstream media talk about how we changed in january changed how all of a sudden we're going to take money away from the banking system from the markets and now we're going to give it back we're going to make it more expensive to them now we're going to make it cheaper why didn't that story get covered it's a very good question and if it did get covered you would have much more economic frustration which ultimately is what's behind a lot of sort of the nationalistic movements and everything that

powell had to say yesterday. the data we are seeing are not currently sending a signal which suggests moving either direction, which is why we are being patient. we feel our policy rate is in the range of neutral. the economy is a growing at about trend. inflation is close to target. it is a great time for us to be patient and watch and wait and see how things evolve. david: patient we have heard before. he went further and said how long he will be patient for. ble at the idea they are still neutral. they got assigned the fed has moved to an accommodation stage. a lot of people are questioning why they needed to do this so soon. a lot of people thought we would get here eventually, but why now? i think that's why you are seeing a little bit of reticence to buy into this just yet. people really don't know what is really behind this change. alix: but there are some indicators you can look at that says maybe things are worse and we thought. the atlanta fed gdp now forecast pointed to growth at about .4%. new york fe

obviously, the powell hedge fund is in full force buying asset prices that's what this is. this has been the story the last ten years. we talked about the defligsry impact of technology look at all the asset classes today. you're seeing money going into high yield, into investment grade, to mlps, into reits, into munis. all asset classes. basically once again we're in an environment where the federal reserve understood that we saw slowing growth, domestically here in the united states. we could have the argument why that occurred, was it a result of trade tensions or not the reality was it was present they made a dramatic pivot for one reason the wealth effect. the wealth effect has been the tool the last ten years, make people feel better by supporting and lifting asset prices >> the feds not only your friend, they're moving in. this was about as dovish as you cos possibly get at this point. >> yes, and this was supposed to be yesterday's move except for comments on tariffs. look, i took off a little bit of exposure over the last week and companies i wasn't so sure of. i a

jay powell turning even more dovish than we expected. reporter: absolutely.ecently as december, the federal reserve was signaling gradual rate hikes this year. people said the consensus was, people thought three could easily be done, and here we are three months later, the fed looking at its economic projections again and changing their mind are medically -- dramatically. when jay powell went to the press conference, he gave his prepared remarks, strong economic fundamentals, the labor market is strong, a positive view. he acknowledged the data that they have to see if it plays out. also talking about the slowdown china.pe and he says it's a good time for the fed to watch and wait. he also talked about inflation. core inflation he said would be 2% at the fed target, but because of cheaper oriole, the headline will be below. this is important to what the fed decided today. let's listen. inflation a little bit below our target, particularly headline inflation will be meaningfully below the target for this year because of lower oil prices, and that gives us the

donald trump renews his attacks on fed chair jay powell. exclusiveom our interview with the standard lights aberdeen boss. >> we have to ask ourselves why he is commenting on the dollar. he clearly wants it weaker. are 30 minutes away from the start of trading. let's take a look at what is going on in terms of treasuries. this will give you a clue as to whether or not we are looking at a risk on market today. you can see that on thursday we were down 2.66%. now we are up to 2.76%. investors are willing to let go of the perceived safety of u.s. government debt and wade into equities. take a look at futures. we have positive trade across european equity indexes. futures i should say. we are looking at gains of a 0.4% on dax futures right now. ftse futures are up about 0.4% as well. a little bit less than that. what do you see on the gmm? we see appetite for stocks, not so much for fixed income. that seems to be the risk-on nature. we see appetite for equities in hong kong and china. .ll this talk about trade what can we expect from the growth

we're going to get stuck holding the bag again so they go back to the fed and they say to jerome powell who raised rates four times last year like this isn't really going to be good for us we need our money to continue to be cheap we need our money through the yield curve to continue to be cheap so powell says in january ok fine i'm not going to raise rates he also said basically last week i'm not going to raise rates i'm not going to continue to buy assets or not to continue to tighten assets sell assets throughout the rest of the year come september everything is going to be cool therefore will ultimately an inverse and that's only because there's going to be more money supply coming into the beginning of it because rates are going to stay low and to the end of it because ultimately there's going to be quantitative easing or the ending of quantitative tightening which is going to bring you down in the long and so the whole thing is basically going to be more and more flat as opposed to inverted. they radically goal but that's alternately how speculation is done right so that the so th

this advice is known as the powell doctrine.l has said after the united states invests a military force in a war, both political and diplomatic efforts are considered. colin powell has said the objective of war needs a political base. finally, he says that once there is a sound military objective, there has to be decisive force to support it. the last military person, david petraeus, was a major in the army when he received his phd from princeton university. his thesis was entitled "the lessons of history, and the lessons of vietnam." david petraeus worked his way up the army latter to become a four-star general and rector of director of the cia. he said that senior generals have drawn three lessons from the vietnam war. one, there are finite limits of american public support from u.s. involvement in a protracted conflict. two, civilian officials are responsive to influences other than objective conditions on the battlefield. finally, the military recognized there are limits of military power when attempting to solve certain typ

powell also said concerns about the unsustainable u.s.ibility congress might not raise the debt ceiling. now, in an unaired portion of the interview which cnbc did see full transcript, they were closer to normal levels over long periods of time. >> what was the surprise for you? i know you're going to say you couldn't be surprised because you're steve leashman. >> less of a surprise than a question, response to presidential criticism or is this part of an effort by powell, which i'm pretty sure he had in his mind when he became chairman to be more transparent and more public. and i think it might be a combination of it. >> definitely reaching a larger audience. >> he went to press conferences after every meeting. there's two reports that we don't talk a lot about, we report on them, that he put out that have peeled back some of the layers of secrecy on bank supervision that didn't exist ahead of time. those efforts he generally has, he thinks the fed needs to get out front maybe and one of the problems it doesn't explain itself enough to

and who better to do that than powell?ary action to disarm iraq. in the end, president bush says he does not need the authorization, but he would like to have it. >> in the vice president's office, they had already written a speech for powell. it was every rumor, every bit of unverified intelligence they had ever gotten and he got it and looked at it and said, i'm not going to give this speech. are you kidding? >> colin powell spent a few days at the cia going over all their intelligence, and the majority of it was discarded. >> our conservative estimate is that iraq today has a stockpile between 100 and 500 tons of chemical weapons agent. an iraqi major who defected confirmed that iraq has mobile biological research laboratories. saddam hussein already possesses two out of the three key components needed to build a nuclear bomb. >> powell had some doubts, but i think those doubts were pretty much dispelled by the director of central intelligence, george tenet. >> he insists that george tenet sit behind him, be right there

i think chairman powell responded to that. i also think that chairman powell believes if we don't get bab back to a more normalized industry, we won't if we don't the next challenge comes, we're ten years on. keep in mind we spent $2 trillion on tax and spending we have kind of wiped out the fiscal response that we can have and we're still not where we need to be to have monetary tools. the question we have to ask ourselves is how repaired are we for the next chance? >> you see every time powell or somebody talks about the high rate and pre-pivot, the market gets motion sickness any time there's a thought of raising rates. now you have the pivot you think the fed is too beholden to the stock market >> i think the fed is independent. i think the actions in the fourth quarter, i'm comfortable with >> would you say like german factory orders were down, expected to be up a little this was a huge wipe out for the german sector. perhaps one of the reasons they got put in days ago is because maybe they knew a bit about this data ahea

i don't think jay powell feels the latter.erest rates -- low interest rates have been the outstanding characteristic for the last 10 years, dominated behavior over that period. they have been unnaturally low, made unnaturally low in order to bring the economy back from the global financial crisis. there are reasons why rates should be higher. number one, rates should be at their naturally occurring levels, the free market will allocate resources prudently. to date, it has been subsidizing borrowers and penalizing savers and lenders. number two, the fed wants rates to the high enough so that if the economy slows down they can drop rates and stimulate the economy and so forth. you there is a belief that there is an inverse correlation between unemployment and inflation, when unemployment gets really low, that triggers inflation. that's called the phillips curve. everybody, since we are now at a 50-year low in unemployment, everyone has been waiting for inflation to get going, which is what the fed's main concern is. that is why

think russia will just let the slide they are mistaken sergey script files nice victoria's secret powell has also been talking at a press conference in moscow and she says that she still can't get a hold of her relatives and she's been denied any information about how they're doing or their whereabouts take a listen. with the british embassy have been telling me since day one that it cannot help me that i have to call the russian embassy in the u.k. under pressure from the media did agree to let me make of this implication but i was refused her visa twice on for more reasons and they even didn't return my passport to me personally they sent it fire me i'm going to even stay here the border of britain so diplomatic relations between london and moscow are still pretty much at rock bottom and this candle is the cause of much of the animosity between london and moscow with the decontamination head declared complete one year on the town of souls barry is at least attempting to turn over a new leaf. and this to say explains how the year and the scandal that put souls bre on the map unfolded. t

colin powell well joining me now are encrypted link from falls church virginia is someone who is colin powell's chief of staff and sam adams award winner laurie wilkinson retired colonel thanks for coming on the show i just going to watch because we played a sound bite there would you recognize that israel has nuclear weapons because obviously there is a continued denial of that fact from the u.s. government now of course they do at least part of the technology they stole from us with the acquiescence i think a limited base johnson then present the united states in the sixty's they have nuclear weapons let's just quickly go to the situation in kashmir because while the most of the media are interested in the talks in hanoi and and the lawyer giving evidence in your country what is your take on the kashmir situation and why it suddenly flared up given your background as a chief of staff this is an.

has recently come to light an exchange between jeffrey leads and former secretary of state colin powell in which he had knowledge is that israel has well as he says two hundred nuclear weapons and the nuclear nonproliferation treaty has not been signed by israel. under u.s. law the united states should cut off support to israel because it's a nuclear power that has not signed the nuclear nonproliferation treaty according to colin powell us well joining me now in our encrypted link from falls church virginia is someone who was colin powell's chief of staff and sam adams award winner laurie wilkinson retired colonel thanks for coming on the show i just going to watch because we play the sound bite there would you recognize that israel has nuclear weapons because obviously there is a continued denial of that fact from the u.s. government now of course they do at least part of the technology they stole from us with the acquiescence i think of when the baby. johnson then president united states in the sixty's they have nuclear weapons let's just quickly go to the situation in kashmir because

i think the issue with powell, you want to hear what he has to say?en more problematic been not in the past. the fact that he will talk that much more i think is an issue. what craig and jeff mentioned, i think the come down to one. and that will validate that they are behind the curve on where they should be. fromll see where that goes here, but i was powell would speak less. jonathan: two you agree with that? chairmanmonths ago, tell came into this job and everyone was excited about it, the straight talking animal reserve chairman, what wall street wanted, and then all of a sudden it wasn't. deafthink it has been tone at the very least. a mistakey expect from a new fed chair when they come in, in from communicating he said a couple of mistakes. i think with the dovish pivot in the comments he made after the first of the year, it signals he is listening. i think the tone deafness should go to the wayside. jonathan: do you find this public debate about how they achieve their inflation targets helpful at all? >> i think it is. i think the market is pay

hays is here.n however the risks jay powell felt the need -- how bad were the risks jay powell felt the need to do this? kathleen: were they say, why are we hiking rates when inflation is barely at target -- those are the questions absolutely. jay powell faced the room full of reporters, a lot of great questions coming in. they might see strong economic fundamentals for we have a positive view of the economy. weakve seen week data -- data, but now is the time for the fed to watch and wait. >> the data is not currently sending a signal which suggests moving in either direction, which is why we are being patient. we feel our policy rate is in the range of neutral, economy growing at trend, inflation close to target, unemployment under 3%. we must be patient and see how things involve. -- evolve. kathleen: the fed was supposed to cut the forecast from two hikes to one but instead, nothing. they also cut the gdp forecast. 2.1 from 2.3 is a big move. they talked about the slowdown in europe and china. jay powell did, and he sees a positive outcome even for china. he is worried about the past

jay powell is taking the work off of him, talking dovish and hoping to get a response.has had that in spades. i think we could easily get to the point later this year where rates go back up again. maybe we should be watching mortgage applications in the next few weeks to see if the rates do stimulate consumer activity. jonathan: let's talk about the the lumber the bond market confronts. depending on your objective, let's say i am looking at two, with the yield of 232, and looking all the way out to tenure for a similar yield of a longer maturity. why would anyone want to take that duration risk for the same yield? luke: you wouldn't, and what we have taken is more in the five-year space, you have a little bit of a pickup over the 10 year. you can slice and dice this up a little bit more and get a pickup in yields or go and chase yield and credit because that is much, much better trade than chasing i think credit is a way to.jos: look. i would also look at the belly of the curve. then two or three year duration and we are short because of what you mentioned, not getting

what we're waiting to hear is not so much in the statement but in the press conference for jerome powell to put a little detail around this new policy of patience that's out there. specifically, is the patience thick or the fed's patience thin what would move it back into either hiking or even cutting re rates? here's what we expect to happen. announce an end of the balance sheet on maybe q3 or q4. maybe downgrade gdp again, and then the question is, do we get one hike or zero hikes down from the two forecasted and the consensus for 2019 many think it's going to be one. and the fed may also discuss the risks out there. the global slowdown. the trade tensions brexit some of the other things out there on the minds of the fed. we'll wait until those things clear before we can tell you what's ahead next with policy. >> let me tell you about the commentary out there i like this one from nat west which says the fed will only move beyond their perceived level of neutrality if the data clearly require it the burden of proof has shifted from those who want to stop to those who wish to keep going

>> it was the ugliest house on the block. >> reporter: leonard powell admits it. after his wife died in 1997, maintaining his house on harmon street was the last thought on his mind. >> i did let the house go. >> reporter: it was a bustling house where the retired postal worker and army veteran raised six children and cellar grandkids. >> we lived there for 45 years. i never had friends to really do maintenance. >> reporter: powell says back in 2015, berkeley housing inspectors determined his house was unsafe and in desperate need of repairs. a judge ultimately assigned a receiver to take over the house and get it back to code on powell's behalf. >> we weren't expecting ceramic tile in the bathrooms, danish modern lighting. >> reporter: powell says the seve receiver made extravagant repairs to the house. in a letter to berkeley's mayor, the receiver says the costs racked up because the house had major structural and foundational issues. lead and asbestos had to be removed. financing, insurance, and legal fees added up as well. that's when a group of berkeley resid

. >>> is the powell fed measuring society's disenfranchisement and if you listen to jay powell, maybeetary policy will too. what does that mean for you and your money? i will let you know right after the break. ♪ i switched to liberty mutual because they let me customize my insurance, and as a fitness junkie, i customize everything. like my bike and my calves. liberty mutual customizes your car insurance so you only pay for what you need. ♪ liberty. liberty. liberty. liberty. ♪ i'm begging you... take gas-x.ed beneath the duvet your tossing and turning isn't restlessness, it's gas! gas-x relieves pressure, bloating and discomfort... fast! so we can all sleep easier tonight. >> given the positive outlook but also muted inflation pressures and the cross currents i mentioned the federal open market committee is going to be patient as we determine what future adjustments to the target rate for the federal funds rate may be appropriate to support our objectives. this common sense risk management approach has served the committee well often in the past. charles: fed chair jay powell speakin

has recently come to light an exchange between jeffrey leads and former secretary of state colin powell in which he had knowledge is that israel has as he says two hundred nuclear weapons and the nuclear nonproliferation treaty has not been signed by israel. under u.s. law and the united states should cut off support to israel because it's a nuclear power that has not signed the nuclear nonproliferation treaty according to colin powell direct u.s. colin powell well joining me now are encrypted link from falls church virginia is someone who is colin powell's chief of staff and sam adams who would win a lottery wilkinson retired colonel thanks for coming on the show i just going to watch because we played a sound bite there would you recognize that israel has nuclear weapons because obviously there is a continued denial of that fact from the u.s. government now of course they do at least part of the technology that stole from us with the acquiescence i think a limited base johnson then present the united states in the sixty's they have nuclear weapons let's just quickly go to the situatio