powell. i would like to ask a follow-up about the libra project and the fed's working group tracking the project. when you mentioned the burden of proof that falls on the project, can you speak at all how the association has been meeting this burden of proof? what further input you have received in the past months? and how should it fall within the regulatory scheme? to yourlly, speaking coordination efforts with other central banks, is this something that you and mr. jordan have been discussing on this visit? chairman powell: on her libra, not a lot i can add. we have a working group among the financial agencies in washington. i assume there are lots of things going on around the edges where we are discussing, but honestly, i would not speculate on that. in terms of coordination, i would just echo, we come to bank tot is central central bank, it is not about the political issues. sometimes it's about monetary policy. in basel toair question each other's approach to monetary policy, so it is

powell: i don't. i'm not going to change my practice here today of not responding to addressing comments made by elected officials. i will just say i continue to believe that the independence of the federal reserve has served the public real over time and my colleagues will conduct monetary policy without regard to political considerations. we will base it on facts and objective analysis in pursuing our goals and that's all i have o say on it. reports reporter: falling yields up until the beginning of this month and the liquidity crunch that we saw. doe the fed have concerns over the impact of u.s. debt in is that a conversation you have with secretary treasury mnuchin to address the challenges down the road with that type of heavy interest globally? >> that is treasury's job and congress' job. how much to spend and how to finance it and none of that calls for advice from the fed. we take fiscal policy to our work. that doesn't stop from saying that we think it's important that the u.s. fiscal picture

chairman powell: yes.ughter] there was that, too. >> you started your career as a lawyer in that investment banking. what prompted you to join the federal reserve board and become an expert in monetary theory? chairman powell: i have had a varied career. i was briefly an attorney, after that an investment banker, then mccain a private equity banker for a large part of my career, but i have also periodically left to do public service. that is something more typical of the american system. i think there's a great benefit to it. really sector work can inform your work as a public servant, and vice versa. i feel fortunate to have had that. the story of how i joined the federal reserve board, i got involved in the debt ceiling confrontation of 2011, worked hard to achieve a resolution from the private sector. as a consequence of that, i was appointed by then president obama to the federal reserve board, and then president trump appointed me as chair. the you ever regret making steps to the public sector? [laugh

get ready, fed chair jay powell set to talk again. >>> jay powell getting ready to speak this hour about the economy and fed policy his last speech before the next fed meetinging what happens if investors don't like what they hear? >>> the big week for the bulls technique up 2%. transports up more than that the semis, soaring the stocks to snap up right now. >>> time to take on. why investors are checking into delta and american airlines. it's our "call of the day. >>> the investment committee is ready to go, "the halftime report" starts right now >>> and it certainly is good to have you with us on this friday. our investment comphoot is steven rice, jon neg jarron, jim lebenthal and megan. >> thank you >> we begin with the markets, all 11 sectors, 100% there in the green for the week four of them including technology up about 2% transports and some of the chip names, guys, soaring and doing very, very well. joe terranova, we talked about it yesterday are you surprised by how strong the market has been this week? where did this market scum after an august to forget? >> i wouldn't charact

and back to mr powell is prognosis on the u.s. economy he may not see a recession in the near future but as you alluded to many people do and apparently that includes a majority of 225 corporate c.f.o. 53 percent of them polled by duke university said they expect a recession in the u.s. within a year 67 percent see it starting before the end of 2020 so in sioux. enough to interfere with the election is mr powell in danger of developing a crisis of personal credibility and systemic business confidence based on his prognostication on the economy and also his reasoning for why the fed is doing what it's doing when it seems to be clearly not credible. yeah i do want to save and though i find myself ironic about this mr powell is under extraordinary pressure he knows that there's a recession coming he knows on some level that he has to deal with it on the other hand he doesn't want to be seen as the patsy doing what mr trump is doing helping him to get reelected since he like mr dudley who said it publicly knows that mr trump is a big

for powell, it was fairly mixed commentary. he talked about a lot of things that could change direction. there is no plan to cut rates immediately but they are looking at data, how the global economy is reacting and what the dollar o going forward. i think they will look to cut rates again looking at trends are for the love -- lower growth. they will need to, i think so. matt: we've heard from big names, from stephen schwarzman, jeff gundlach, negative rates are bad for the system and they all talk about the reason being, it dissuades banks from lending. jerome powell said he doesn't think we should go to negative ates, but is is a positive, least for financials that the fed doesn't necessarily look like it is on the path to continue these cuts deep into 2020? lead to at was to steeper yield curve or something banks can use to maintain healthy growth in their balance sheet, it is a positive thing but the market has priced in a lot of rate cuts going forward. fairly flat yield curve, which is difficult for banks. it is certainly

today for doing it only a quarter of bowling the reason mr powell. paul said recently that we're not facing a recession is that's as much as he's willing to do for mr trump to join mr trump in saying something that is patently untrue namely that we have no recession to fear we do not only is it the normal pattern of our economy the type we have been has been for 200 years but we have the added problem economic war with china and drone attack in saudi arabia that revs up the risk of war between the united states and the iran the collapse of the negotiations between britain and europe around the brags that question and a decline in economic growth in both china and europe those are more than enough complicating factors to make any reasonable economist very worried about recession mr powell statements are to mollify a president squeezing forward much greater costs than mr powell is ready to do and so we sit there with this contradiction as you rightly describe it seems like he mr powell is performing for an audience of one and that one audience member i

you won't get something more from jay powell. but bore something good at fed chief. janet yellen was real boring and incredibly powell may just be even more boring than she was. scott in florida scott. >> caller: boo-yah, jim. how are you doing? >> i'm doing figurines pumping in honor of the fed chief. >> caller: i'm dodging some hurricanes >> well, yeah, i think you dodged one what's going on, my friend >> caller: i've held about a 12% to 15% portfolio position with schlumberger over the past two years, 51 years young and i'm down about 45% to 50% in the house of pain. i'm curious in your opinion should i just hold on to it? >> well, no, here's what i did the other day, my travel trust owns it, i've known the company since 1982 and we just decided to take a little bit of a loss it does have a good yield. new management is good but i think these stocks are dead in the water and nothing is going to change my mind anymore so i told you at actionalertplus.com members, i told them that we sold some. phyllis in new york, phyllis. >> caller: oh, jim it is such an honor to

also what powell must do to help us really understand his new policy the powell doctrine. stay with us. ♪ lps airtech automotive streamline payroll and hr, so welby torres can achieve what he's working for. dimitri's on it. eating right and getting those steps in? on it! dimitri thinks he's doing all he can to manage his type 2 diabetes and heart disease, but is his treatment doing enough to lower his heart risk? [sfx: glasses clanking.] sorry. maybe not. jardiance can reduce the risk of cardiovascular death for adults who also have known heart disease. so it could help save your life from a heart attack or stroke. and it lowers a1c! jardiance can cause serious side effects including dehydration, genital yeast or urinary tract infections, and sudden kidney problems. ketoacidosis is a serious side effect that may be fatal. a rare, but life-threatening bacterial infection in the skin of the perineum could occur. stop taking jardiance and call your doctor right away if you have symptoms of this bacterial infection, ketoacidosis, or an allergic reaction. do not take jardiance

. >> thank you, chairman powell. there's a sense of people that the economy is actually starting to slow now. so is the economy over the next year between now and next year, do you think gdp growth will hold steady? how do you see the economy evolving over the next year? i think that's widely shared among forecasters. it's that dploebl growth will have an affect less so than any other economy. still there's a sector of the economy. apparently it has an affect the job of monetary policy is to adjust to ensure downside risks but also to support the economy in light of the existing weakness that we do see. we don't see a recession or forecasting a recession. >> we're hearing the bond market signaling recession. so that signal is not pertinent to you >> it's not -- there's no one thing that is dispositive among all financial yield curve is something we follow carefully. just to talk about current situation, long-term rates move down a whole lot and retrace generally material changes that are sustained for a period of tim

part of it is chair powell is a number of a committee, and it surprised me when powell was first nominated by president trump because he wasn't a dove. he's a mainstream kind of thinker when it comes to monetary policy. i was expecting someone who is a known dove to be appointed. it shouldn't be surprising that powell is being a middle-of-the-road person and not dovish like donald trump seems to want. vonnie: i just want to fact check what larry kudlow said about 4% on wages. i did look it up, and the last three months has been three point 2% year-over-year, 3.3%, 3.2%. what did he mean by 4% plus? alix: he's talking about --ira: he's talking about the momentum, so basically if you took the last three months in isolation and annualized that. that was my point earlier in our discussion, was that the momentum on the wage site has been ok, even though job great.n hasn't been great. the some of that -- the sum of that is ok for the economy, and shows that things might be stabilizing somewhat. the consumer has really been the big heartbeat of the economy so far, with the manufacturing sector co

powell.eil: you're right about that. [laughter] neil: all kidding aside, the money shot will be when jarome powell gets to the microphone and start filling questions, i'm not sure where the exact structure of the event, they get a lot of quick things out of the way and then it's time for the star of the moment, the chairman of the federal reserve to be peppered with questions, so that is what we are waiting for, but daniel, i'm sure the question will come up how low do you go, right, and no fed chairman or chairwoman will ever answer that, at least black and white but i'm going to ask you, how dlow you think rates have to go in this country? >> trade war is taking great toll, serious ratcheting back in manufacturing hires, good chunk of july were revisions in manufacturing, so if the economy is turning the corner, we've had 5 back to back months of downward revisions to these job numbers, if we are slowing down and job growth at the slowest pace of the entire last decade of expansion, then th

we have a fatal crash westbound 80 at powell.re was a pedestrian walking around in the center divide who apparently may have jumped into the lanes of traffic and was struck and hit by a car. westbound 80 completely shut down this morning right at powell. so they are taking traffic off, and you can see that the powell on-ramp to the bay bridge is open. so that's only one lane getting by. also, traffic is quickly backed up, westbound 80 a complete parking lot through emeryville backing up into berkeley causing over hour-long delays. westbound 80 the spot to avoid this morning. you may want to consider alternate routes. you may want to head to 680, 24 or get onto the bay bridge via 880. we'll keep you posted and check out some drive times as well. >> that's a huge problem. thank you so much. >>> sheriff's deputies say rescuing bears is becoming a regular duty around lake tahoe. one bear needed to be freed after getting trapped inside a dumpster at north star california resort. a deputy used a step ladder to climb on top of the dumps

reporter: hi, chairman powell. paul keernan from dow jones news wires. you mentioned an ongoing complicated discussion. what is your rule for stopping, as far as interest rate cuts go? you referred to this as a midcycle adjustment, the median dot suggests no more rate cuts but you know, if we get continued kind of -and-forth between the u.s. and china trade policy uncertainty is going to remain heightened so you know, under what circumstances would you say i think we've cut enough, we stop now? secondly, as leader of this institution, have you felt the need to take any steps to boost like employee morale at a time when the president is constantly criticizing the fed? thanks. >> you know, i would love to be able to articulate a simple straightforward stopping rule but it's really just going to be when we think we have done enough. our eyes are open, we are watching the situation. we have cut rates twice. we have moved really through the course of this year as i discussed, and you know, we see ourselves as taking actions to sustain the expansion and thereb

powell will start to loosen up, so will the traffic connecting ashby and powell o frontage road.estbound 80 starting to move better now but we have a l of backup to make up. the bay bridge toll plaza which was completely vacant in the last two minutes has shown all the traffic flow so here is the big burst we'll see. they may have to turn the metering lights on at the bay bridge toll plaza because of the traffic unleashed down the east shore freeway. we have from central avenue jammed but another crash involving a motorcycle in the backup at university westbound 80 at university may be a problem. we're tracking that. all lanes approaching the berkeley curve have cleared from the deadly crash investigation and the rest of the bay as you see is showing what we like to call friday light. or friday late. >> sleep in. oh cooler temperature this is we'll kick off the weekend tonight in campbell with our live music on first fridays. >> that's always a fun one. >> it is. temperatures in the mid-70s. it's going to be so comfortable and some breezy winds, reag into the low 70s at 7:00 and

what are you hearing from fed chair powell thus far? the implications as you see them for future rate cuts >> well, i think powell was pretty much middle of the road we did see some confusion earlier in the week hearing from different fed officials talking about the strength of the economy versus calling for a larger maybe 50 basis point cut. there was a lot of attention on powell's commented today, whether or not he was going to indicate one side or the other instead he continues to say the economy is performing okay but we want to continue to support the expansion which really supports the notion that the fed will follow through with a second round rate reduction in september, but it's not going to be a 50 or 75 basis point cut. likely just a quarter rate reduction. >> what's the justification going to be? while the payroll report slowed a little, the trend overall has still been fairly strong the unemployment rate numbers look very good the wage numbers look good the african-american unemployment down to 5 1/2%. there's a lot of stre

chair powell could have chosen to be a little bit more dovish. he didn't, he said the economy is doing just fine. that sends the signal that they may not be ready for a 50 basis point cut. they will just to 25 basis points in september, and we will see what happens next. vonnie: let me bring in another mark scott to answer the same question. >> hard to disagree. the fed will certainly respond if they have to. and they would prefer fiscal policy to be more cooperative, but they will deal with whatever the reality is. they will cut if they have to. i agree the case for 50 basis points is difficult to make at this point. having said that, 25 is baked in. you may see fewer dissents today. today's employment data will probably soft and the resistance from the hawks. beyond that, it is depending on the data. i think the data has to get worse if you want to get more from the fed. that could well be the case. digestjust starting to the effect of the latest round of tariffs. headwind toill be a consumption. i think that will lead to another cut, but not u

powell talks about being in line with the data.told them not to go past yesterday if he's going yesterday. the idea of being data dependent is some what wrong >> steve, what do you make of the, quote, divided fed? is it a situation where you say they all can't agree and maybe trump's pressure is getting ahead or maybe, hey, they are all smart people and have a different view and that's okay >> i think this is an interesting time, brian. i usual liam pretty sure what the fed is going to do and why once it has decided on a case, i kind of get the case they make i think you could make a good case in either way right now when i look at some of the major indicators, they've become a surprise to the upside that includes inflation, that includes wages and production. consumer confidence snap back. the one thing down is business confidence and capital spending. year over year, it is down it is a little strange for the fed to be making a case based on a small part of the economy. given that, i see how you make the case i think the divided f

it's right at powell for folks heading to the bay bridge. you can see all lanes shut down from this fatal accident that happened at 4:25 this morning. only that one lane of traffic getting by. that's the powell on-ramp to the bay bridge. i want to show you another live caltrans camera. you can see the traffic there is messed up. that's powell on the right-hand side of your screen and the frontage road. that's where traffic is getting by. this is already causing well over hour-long delays on westbound 80 through berkeley and emeryville. consider alternate routes this morning. >>> this morning ghost ship master tenant derick almena is in jail following a split decision in the involuntarily manslaughter trial. >> 29-year-old max harris was found not guilty yesterday. the jury was hung, unable to reach a verdict for almena. he faces a possible retrial. he already has a hearing set for october 4th. a civil suit is definitely moving forward. that trial was set for may, but that could change if there is another criminal trial. families of the victi

jay powell doesn't speak again until early october.ere's plenty of room for traders to make their own decision about whether they think this is hawkish or not and listen to the next few speakers. that could have the market jumping all over the place. we could have the treasury market: big around -- clipping around. there was a difference between the highs on the lows. that will filter into the equity market as well. it will be tough for the s&p 500 to make serious up the moves while the treasury market is jumping around so much trying to interpret where the lower bound is for the interest rate side. we have the fed funds futures looking for as much as 50 basis points over the next year. the fed is saying through the dot plot, they should be unchanged. some but -- something has got to give. the feedback will come through to volatility and equities. see soll not want to much choppiness in the short-term. it will make it tougher the s&p 500 to make a lot of progress on the upside unless we get something surprisingly good come out between

fedi chairjerome powell a trip is that wea kness to chairjerome powell a trip is that weakness to trade since our last meeting with seen additional signs of weakness abroad and a resurgence of trade policy tensions, including the position of additional tariffs. the fed has no role in the formulation of trade policy, but we do take into account anything that could materially affect the economy. trade policy is determined by the white house. a white house that is a very vocal critic of the federal reserve. although we decided to cut interest rates, did very little appease us president donald trump, who believes interest rates should be cut further, even to zero. mr trump has been a very vocal critic of you and your colleagues, recently calling you bonehead is adjuster has called you a terrible communicator. how do you respond to these criticisms? i don't. i'm not going to change my practice here today of not responding to comments or addressing comments made by elected officials. i will just addressing comments made by elected officials. i willjust say addressing comments made by elected

chairman powell says the u.s. outlook is solid saying moderate moves should be enough to sustain the expansion. joining a now is james mccormack , director / global head of sovereign & supranational ratings, fitch ratings. what do you think of the cut yesterday? we think the fed is done thenow and agree with assessment that the u.s. economy is fundamentally strong. the only thing that has really changed is the global outlook, and that is driven by trade and the trade conflict. hawkish cut, i guess you could say that because there is not an obvious path for another rate reduction which is the way we are looking at it. we think the fed stays on hold until the end of next year as well. is that because you think the data is better than the market is factoring in? even when the fed looks divided. james: we are talking about two things, the market and the real economy in the u.s. if you read the statement the fed put out, it sees economic strength as we do, labor market strong, household sector strong, consumption growt

will powell signal more are coming and what happens if investors don't like what they hear? the bond king making a big call. jeffrey gundl arach weighs in. roku soaring 350% this year, but the stock getting hit today despite a big upgrade. should you buy on this drop? it's our call of the day halftime report starts right now. >> welcome, good to have you with us on this wednesday. what a big day it is our investment committee is here joe, steve, carrie, we begin with the latest in the markets where stocks are clearly waiting on the fed i was going to go to you first, weiss, but -- >> you should. go to weiss. >> penalty box sometimes it's best not to lean in, steve. what has to happen today in that's what i want to know first. what has to happen today >> powell has to come out and not be overly hawk in what he is p projecting for the economy >> so you have to have a cut and you have to have a dovish cut. >> you have to have a dovish cut. i think that we have a market that could be disappointed after today. i think a lot has been priced in in terms of the construct of the mark

jay powell said that in so many words today. it will really depend on how the global economy unfolds and particularly how the u.s. economy unfolds. paul: thank you for joining us. in the next hour, we will discuss the latest fed moves with the former atlanta fed president. still ahead, facebook announces it will resume transcribing user audio clips on his video device, portal. -- shery: saudi arabia claims it has evidence that iran was behind the oil strike. president trump wants tougher sanctions in response. this is bloomberg. ♪ paul: you're watching "daybreak australia." let's quickly check in on wti. it started trading amid rising tensions in the gulf. .2%,ntly at 5823, up about but overall, the trend is for crude to be coming down as saudi arabia makes more assurances on the supply. of course, the fallout on the attack on that aramco plant does continue to unfold. saudi arabia accuses iran of sponsoring last weekend's strike and president trump says the u.s. will be adding very significant sanctions on tehran in the next 48

chairman powell was asked about the u.s. economy and whether or not the data we're getting would be enough to push the fed to cut rates or to pause. he also have a question about the differential between what is going on in the u.s. and overseas. we got good housing data out of the u.s. this morning. had he reconcile that? >> you have to look at the global economy. sector is being hurt by the strike. housing starts are extremely strong. you have the dichotomy where on the one hand, the consumer seems to be doing well but to my earlier, you see some cracks. powellht chairman ballasted that very well. also indicated it has to look at the global economy. clearly, that is slowing down. there is no question that will have an impact on the u.s.. chair powell was speaking, you are pointing to the reports and comments from analysts and economists. was there any consensus or was it very? >> it was a different tone before and after the press conference. there didn't seem to be a sense of unity. before the press conference, everyone wa

chairman powell: we are not on a preset course.ns meeting by meeting and we will try to be as transparent as we can as we go. if the economy turns down, a more extensive sequence of rate cuts could be appropriate. we don't see that. it's not what we expect but we would certainly follow that path if it became appropriate. i do not think we will be looking at using negative rates. if we experience another episode of pressures in money markets, we have the tools to address those pleasures -- pressures. we not hesitate to use them. it is quite possible we will need to resume the organic growth of the balance sheet earlier than we thought. we are watching carefully. there will come a time, i suspect, when we think we have done enough. there will also be a time when the economy worsens and we would then have to cut more aggressively. we do not know. we will have to watch things more carefully. francine: joining us now is michael bell and david riley from bluebay asset management. thank you for joining us. how much insurance does the u.s.

i think powell handled it very well he didn't say a thing, which he shouldn't. think there's any indication whatsoever as to which way they're likely to go of course we all assume they're likely to do a quarter i think the idea of a 50 base point cut has been thrown out the window, but it's not clear remember, they have a limited number of pennies in their purse. they only have so many cuts to offer before going back to the 0 balance which nobody wants to do and they don't want to think about going negative nothing was said today i wouldn't expect anything given my experience. i think he handled it very well. very importantly, sara, he punted away and put to bed the insecre indiscreet comments that bill dudley had made. so i thought it was a good speech it was good because it didn't say a damn thing how's that >> richard, i want to come to the dudley comments in a moment. but sticking on the content of the speech for a second, clearly he was quite relaxed or struck an unconcerned tone about the u.s. economy also kdid so for the international economy saying he di

did powell give any hints? what do you think, steve >> we're going to let you and viewers be the judge he was in switzerland, asked directly, asked directly by a member of the audience whether he would be cutting rates in the months ahead you tell me what this tells us >> we're watching all of these developments the geo political risks, breck it, incoming data. and really looking at financial conditions and we'll be assessing those in future meetings and we've said that we're going to act as appropriate to sustain the expansion. >> so that act as appropriate has kind of been the code word for we're going to cut rates given the market thinks we are powell's comments came after the jobs report which he said showed a healthy jobs market and scored an upbeat view of the economy from the chairman. let's take a look. i've divided it up rising wages a really strong house for se several months headline payrolls. downward revisions of 20,000 and really under 100,000, a lot of the growth was from census workers. so modes

chairman powell is learning on the job. he's figuring out better ways to communicate to the markets. in 2018, there was this inflation talk, worries about inflation running wild. that didn't pan out. all rates did is drop. so he's trying to figure things out and the market is liking that. >> neil: what is interesting too, fed ex was out today saying that, you know, it blame as lot of their disappointing earnings and rather sour outlook on the ongoing trade war. they can make a good case for that. they're directly affected. others, general mills, susan li was saying similar things. more and more companies are going to do that. that is what presumably the federal reserve was addressing. >> yes. we heard from the business roundtable. half of the executives say sales will be impacted because of this ongoing trade war and the strong dollar as well. in the previous quarter, all of these companies said the strong dollar has impacted their earnings when they bring it back on shore. same thing with apple. part of this monetary polic

rates if he wants to powell is a traditionalest fed chief, for more than janet yellen that's why powell wants to be measured even though he was anything but measured with his rate hikes asemimet triric l and wrong. this is starting to hurt the economy. i lived through the '70s and understand the fear and if you don't stamp it out, it will wreck your economy this isn't the 1970s, jay, jay, you're an old economy guy, come on powell doesn't realize the new economy is deflation narcot we're creating jobs and thanks to labor saving technology wages are going up for an old economy guy, that's puzzling if you watch the tech companies i have on this show, you know they are about letting companies do more with fewer workers in short, the fed doesn't need to worry about inflation they should cut rates to offset any damage from trade war, a trade war i favor. not so hot jobs number makes it more likely that powell will do the right thing. so the bulls got their number, the president was able to crawl 3.7%, one of the lowest figures in 50 years and left unlikely to fight the fed. that is great news

at cnbc here is your five at 5 show time for powell the central bank prepares to release the latest decision. >> also today, saudi arabia set to hold a news conference following those devastating attacks on two of the largest oil processing facilities in the world. and return to sender shares of fedex sinking. warning on everything. and the ceo of wework laying it all out to his company hours after delaying its ipo and new details on facebook's newest project to develop augmented reality smart glasses. "worldwide exchange" starts right now. ♪ >> good morning, i'm courtney reagan in for brian sullivan this morning shares of fedex crumbling. the company missing on earnings and lowering guidance. much more on that stock coming up you can see shares down more than 11% in the early going. here is how your money and global markets are setting up their day. stock futures are indicating a slightly lower average dow jones lower by 34 points s&p by 4 and nasdaq by 10.5. it is fed day. that is really the focus not just in the u.s. but around the world. looking at the bond market we continue to watch cl

no attention no the overly aggressive rate hikes behind the curtain powell is human.top trading it's got to be tempting to refuse to cut rates purely out of spite but at the end of the day powell takes his job seriously. and i don't think he would do that no matter how miserably the president treats him that doesn't mean he'll give us what we want but decide on a more measured pace he thinks it's a good idea which brings me to speaker pelosi. i know the trade war is front and center for many of you given the jarring nature of the tariffs and struggle to make chinese government change their unfair practices but to me the more sal cent trade initiative is the prospect of the new trade pact among the u.s., mexico and canada, the usmca that so many are worried about because they think it might not be able to pay us, congress imagine that the prevailing wisdom things are so rancorous and ugly that the chances of it passing seem to be diminishing by the day i think a failure would be disastrous for many international businesses based here however that's not the impression i

he's obviously disappointed with powell. powell isn't going anywhere. is this going to play out? >> it's very interesting. first off, if jerome powell wanted to appease the president, he would have cut 50 basis points. that's how you appease him. i don't agree with what the president is doing. he's right that jerome powell missed the boat. he didn't see the storm clouds when they formed in december. he was raising the fed fund rate and emoting the balance sheet on the long end that caused the economy to slow. that said, these sort of battles between fed chairs and presidents happen all the time. they don't happen the way this is happening. usually done through surrogates. >> neil: like when i trash you. never to your face. >> you do it to my face. that's what i love about you. if you think about it, something honest about this. the president doesn't like it. he's saying so. usually it's done by the guys behind the scenes. this is playing out for everybody to see. >> neil: good point. no doubting where the president is coming from. aaron, let me get your

moments ago we did hear from the man himself, jay powell, the fed chair commenting on the state of our economy and also world outlook, this perhaps public comments before that nextgaterring after report that saw giant surge in labor force, in the labor force and also wages continue to be stronger than anticipated. plus attorney generals are launching separate antitrust probes in facebook and google. hurricane dorian continues to battle the east coast, we have update in north carolina after storm made landfall only a few hours ago, all that and so much more on making money. ♪ ♪ charles: federal reserve chairman jarome powell speaking ongoing tensions with china, last time we will hear from fed officials before that september policy meeting, right now the betting is that they will cut at least 25 basis points. i want to go to fox business edward lawrence who joins us now with complete recap from the entire speech, not entire speech but recap. >> he also mentioned the job's report that came out, the job's report showing stable economic foundation, the job's creation 130,000 in august, bel

. >> all lanes shut down on i-80 at powell street. this is a fatal crash where a vehicle hit a pedestrian. the investigate will take some time this morning. no word yet as to when the lane will reopen. they are did i haveing traffic off the freeway. so nip who is stuck in there, they are troying to get them off the surface treats to get around the area. you can see traffic is is being taken off through there. shutdown there. we'll let you know when it reopens. jackie word is headed out to the scene to get us more information. you are back to well beyond university at this point. a slowen go ride this. stick with surface streets. nine train running on bart so that might be your best bet if you are commuting early into san francisco this morning. all lanes remain blocked westbound 80 at powell street. some traffic is being held offer on the east shore freeway. no delays there. your do you have time, 27 minutes. the rest of the because area pretty quiet with the exception of some construction along the nbc4i.com its freeway. that is a lo

powell might be asked about that repo rate.th the bank for international settlements general manager. we asked him about the challenges to monetary policy today. conundrum that monetary policy faces right now is that monetary policy has been tremendously competitive. we are at low rates of interest. we are still not fully there in terms of economic recovery. >> that's it. that's what i want to get at. can monetary policy perhaps engendering recovery? have they run out of options? the toolkit seems to be barren for a lot of these heads of banks. >> yeah. a little bit more can be done. many advanced a company -- economy central banks see inflation below objectives. growth is not where it should be. the effectiveness of monetary policy is not absolutely guaranteed. therefore, it needs to be complemented with other policy instruments. policies youother have referred to would be the fiscal side of things. >> absolutely. ittell us about how -- varies country by country, of course. what type of fiscal measures wouldbe you9 would you -

jay powell likes consensus thinking.e want federal reserve to take over. >> i want consensus, as military guy, so are you. charles: military guy, when the highest ranking officer stepped in the room he or she was in charge! >> it says, sarge, what should i do? i like that. other sergeants have input. that is how you come to a better decision. >> during the next week you will see a parade of fed heads walk out on shows like this, walking out whatever comes tomorrow. they will be talking their own book. charles: with respect to what happened overnight, i don't want to get wonky about this, there was a mini-crisis, a lot of people say it could impact the federal reserve. maybe their balance sheet could be larger. help us with this, zach. >> you saw repo rates take off. two big things we saw driving this, corporate tax payments at september 15th tax deadline, while at the same time net treasury issuance in the form of coupons was above 50 billion on monday of this week. those two factors, particular timing of the two, caused

he said jay powell at the federal reserv refail again, no, no sense, no vision.here were three descents. two fed members did not want a rate cut while a third wanted a bigger rate cut of 50 basis points. president trump discussed his opinion of jay powell during an interview with ed henry at the southern border. >> i don't think he knows how to play the game very well. they've raised too fast. and i've been saying this openly. and they've lowered too slow. and he took 25. some people were hoping for 50. he did 25. the fact is, when germany gets paid to loan money, i mean, they're borrowing money so they're borrowing -- think of it, they borrow money and when it comes time to pay back, people pay them and we can't participate in that and it's because of the fed. so i'm not thrilled with the fed but despite that we have an incredible economy and we don't have inflation. >> is chairman powell's job safe? >> it's safe. sure, why not. >> you paused. >> i don't pause. evidences got a job. i'm disappointed in him. lauren: you can watch the full interview on fox and frie

i'm showing you the bay bridge toll plaza because our camera sees the area around powell. we can't make out any problems. we're swinging our camera around the emeryville side east shore freeway, see what we can see. i'm told all lanes of westbound 80 at powell are blocked, the same direction as yesterday's problem way up here in san pablo. san pablo is clear but powell coming through berkeley and emeryville, word is they just closed the lanes for a deadly crash on the east shore freeway approaching the bay bridge. we'll track that. traffic is light but a closure of that freeway will be a major problem again today. we'll bring you more detail coming up. backewsight now in the south bay where one woman has died in a mobile home fire. it started a little before midnight at a mobile home park in san jose on el bosk drive south of highway 237 close to the al viso salt pond. firefighters confirm one death. neighbors say the person who lived there is a disabled elderly woman and say anotherer. inside made it out in time. bob redell is following the story and will join us with a l

it is westbound 80 right at powell. all lanes completely block.jackie ward is head the out the saskatoon and she -- and s you more information. no delays coming off of 880 or 580. gunpoint being they are again, they are holding traffic at powell street. a very slow ride for this time of the morning he is especially on a friday. 25 minute to go from 205 to 680. if you are headed for the dublin interchange, you should be good to go this morning. a little fog at golden gate bridge. traffic light as you work your way out of hayward and into foster city. >>> immediate yap eddie murphy is ready to make you laugh out loud again and sell broughting 25 years of of the hit tv sitcom, friend. >>> some of the iconic moments from the popular sit com friend are being recreated at a store in new york. fans can check out props an costume worn by the act ours. mage wheeler playedian is on the show. she says the store make her feel at home. >> this pop-up is uncredible. all of the sets an all of the mara bill i can't, it is fantastic and quite hon of thely, it is r

however, i think powell did a masterful job in the press conference. think that midcycle adjustment was all about highlighting that dissension. dodging the issue altogether, keeping the fed's optionality, shows the maturation that he is going through. now he is talking interns as well. fantastic. we need a fed like that rather than putting everything out on the table. because things are uncertain. having that flexibility is important. jonathan: there is an argument among many people that this was not enough. 25 basis points was not enough. they should have gone harder. they should have been emphasizing through the future that more rate cuts are coming. when you look at the yield curve, 2/10, it didn't steepen. it flattened. what is the argument? that they are not doing enough quickly enough, or is it just people questioning monetary policy? every rate cut they deliver, you push that through the curve and drag the whole curve lower. priya: i think it is the latter. we realize this is not an interest rate problem. chair powell said that in the july press

>>we had all lanes close to 80 west after powell street in emeryville.was struck and killed by a car. they cleared the scene about 20 minutes ago and so the traffic looks much better in emeryville keep in mind we had a crew ash in the backup involving a motorcyclist between university and gilman that was blocking the 2 left lanes so both incidents out of the way traffic is still slow looks a whole lot better now that they're no longer diverting you or have it close down. so expect to see some crowding here 80 west from albany through berkeley down to emeryville we're holding at 20 minutes and that

fed chair jerome powell attributes that wea kness to jerome powell attributes that weakness to trade since our la st weakness to trade policy. since our last meeting we have seen additional signs of weakness abroad and a resurgence of trade policy tensions including the imposition of additional tariffs. the fed has no role in the formulation of trade policy, but we do take into account anything that could materially affect the economy. trade policy is determined by the white house, a white house that is a very vocal critic of the federal reserve. although it decided to cut interest rates, it did very little to appease us president donald trump, who believes interest rates should be cut further, even to zero. believes interest rates should be out further, even to zero. samira hussain in washington, dc, and the fed hasn't just been hussain in washington, dc, and the fed hasn'tjust been cutting interest rates. it has also injected more than $125 billion into the us banking system to help keep credit flowing. meanwhile, brazil's central bank has lower the cost of borrowing toa bank has l

how is chairman powell doing? are there elements that he is not a phd so there is a different cadence to what this chairman says? >> i said repeatedly you don't have to have a phd in economics to be a successful policymaker the fed. i think chairman powell is proving that. whatnk he understands monetary policy needs to do. i think he is thoughtful. it is all about judgment. >> right. >> confidence in someone's judgment is what is critical. i have confidence in chairman powell. >> if we assume the assumption of any given chairman, i can a president tweeting in early 2008. this chairman is being buffeted from all sides. fromdoes he need to hear vice-chairman clara and the other phd economists at the fed right now to drive forward to a better policy? >> the core group of leaders that the fed, clara, williams, and powell are all on the same page. >> are they? >> i think so. >> what about the dots? >> i think a lot of people hate these dots, and the fed is starting to go that way as well. why do we still have them? >>

we are so strong despite jay powell. jay powell is not helping us. other countries have low interest rates. it is very simple. he lifted the rates to quickly and he lowered them to slowly. it is a shame. not too many. not too many boneheads. i tell you what, we really have a great administration. we have a great cabinet. our cabinet has done a great job. >> [inaudible] >> he is a great gentleman. he is doing a fantastic job. he is only going to do what is right. he is only going to do what is right. just so you understand, the conversation i had the president of ukraine was absolutely perfect. people better find out who these people are who are trying to subvert our country. these are bad people. the conversation i had with the president of ukraine was perfect. what you have to do is look at the corruption on the democrat side. take a look at how the whole witchhunt started. now they want to try to find another witchhunt. this one is reverting now to joe biden. he has done some very bad things. i'm am not even looking to hurt him. he needs all the he

is that powell? think powell, evans, and florida are in that camp -- and clarida are in that camp. it is really a split committee as to whether they should continue easing or not, but as the conditions evolve, we've been on a little bit of a path of strong data of late. some strong retail sales, rebounded industrial production. that gives them a little bit of confidence in the hawkish camp that could easily start to move later in the quarter. friday we see consumer spending, which has been so strong, really just driven by a drawdown and savings. that would be a concerning develop and. it is really the health of consumers that is going to determine how things look in the back half of the year. when we look at the input into that, wage and salary generation, things have been to several rating for about a year and a ash have been decelerating for about a year and a half. that is like -- have been decelerating for about a year and a half. that is like wiley coyote falling off a cliff. you buy into you bu

now comes jerome powell.not an economist, he doesn't have a strong vision. trump says he's a poor communicator, i don't disagree with that. he's also a poor leader, or at least he's abdicating. he doesn't have a vision as a strong ceo who's supposed to bring people along with a vision. i think that's what ceos do, that's what every fed chair since the '80s has done. so the market is having to get used to the idea of a fed chair who just simply counts votes. so we have no idea what the fed's going to do because the fomc is just 12 votes where out of 12 people drawn from all across the country you're going to have some hawks, some doves, you never know. so there is no vision. there's no vision to communicate. charles: great point, and that was also underscored in the so-called dot plot, you had a couple that wanted to do nothing, one voter who wanted a 50 basis point cut. jay powell says, he seems to take pride that he is more of a consensus builder rather than someone who likes to dictate his own opinion or au

and is the market ready for what we get from powell when he talks?i think the market is ready for some, it's not ready for all right now. i think we'll definitely get an interest rate cut, 25 basis points i think we'll probably see a cut to the reserves rate by perhaps a little more and i wouldn't be surprised if we saw a restarting of some quantitative easing at least in the form of open market operations it wouldn't surprise me a whole lot if jay powell comes out there and takes a hard stance on this being the last cut of this mid-cycle adjustment markets are pricing in more than that and i don't think they're going to get more than one more cut. >> burns, do you agree with that it's been not as bad as feared but better than expected. >> it certainly doesn't justify a 50 basis point cut really the economic data probably doesn't in the near term justify a 25 basis point cut. because the fed has said they're going to make the cut, we do expect a 25 basis point cut almost absolutely going to happen this is one of those instances where they say actions