chair powell: good afternoon everyone. to begin, i would like to say a few words about paul volcker, who as you know passed away earlier this week. paul volcker served as federal reserve chair from 1979 to 1987. he accomplished many things during his long and distinguished career at the fed and elsewhere. of course, he is best known for leading the fight to tame the double-digit inflation that he inherited as chair, thus laying the foundation for the prosperity and price stability we enjoy today. but what is perhaps most admirable about him -- more than his many accomplishments-was his character. he believed that there is no higher calling than public service, and he dedicated the lion's share of his life to it. with courage, integrity, and tenacity, he always pursued the policies that he believed would ultimately benefit all americans. my colleagues and i continue to draw inspiration from his example. turning to today's meeting, my colleagues and i decided to leave our policy rate unchanged, after lowering it a total of 3

powell said a lot of foolish things today. it was ironic that he began the press conference by praising paul volcker and now he's going to resurrect the high inflation that paul volcker buried. inflation was never created by economic growth or employment or wages. the fed creates inflation. what's different now is there's been a lag between the inflation that the fed creates and the impact that it has on consumer prices, which year over year is still up better than 2%. but a lot of that inflation is in the stock market, in the real estate market, in the bond market. the lag is what's longer. but that's what's going to change. we are going to be hit with a tsunami of inflation in this country. we are going to have an inflationary depression. you know what powell just said is really rewriting the playbook for central bankers. he said we are going to wait until inflation gets really bad before we do anything about it. in the past, you know, you wouldn't want to let the inflation genie get out of the bottle. powell is saying we wi

so you know, powell he could be last hurra. >> stay there i want going to the for mr. new york stock exchange see how traders react to this gerri willis there for us. >> jackie that is right traders obviously, fan of this, as you can see, we have seen dow from where 27 to 30 points down, down 6 points briefly positive territory, this is what traders expected, no change in rates. what they wanted to hear but they are going to be listening closely to that presser, as a matter of fact one trader telling me he hopes the federal reserve chairman has a red bull to spice up that there is a long boring presser, here is what else they told me that -- the forecast seems low 2.2% 4q, 2% next year they think not high enough going growth will be significantly higher than that, and they like the fact that the fed turned in a unanimous decision. that to them signals some kind of con siftency. >> everybody thinking is this what will happen once before i came to air telling me almost too quiet as we wait for this remember strong jobs numbers on friday, and just today we had -- core cpi

powell saying it's time for a peace dividend paid to labor. he really wants labor to get its fair share of the economic pie and he's ecstatic that there's more slack than he thought in the economy, say, two years ago. from the standpoint of making mistakes, sure, i thought there was less slack than there is that's a wonderful mistake i found more slack he is a principled pocketist. >> it is pretty amazing we're still finding workers in this labor force and sitting at these 50-year lows for unemployment. paul mccauley, michelle meyer, steve zervos and steve liesman. >>> 22 minutes left at the session at the moment, 13 points up on the dow. pretty close to the highs of the session, about 0.3% for s&p 500. last chance trade. josh looking at one name down 40% year to date. >>> former fed president and former fed governor sarah bloom raskin will join us with their take on today's fed decision here is a check on the bonds following the fed decision ten-year sitting right around 1.7% here. closing bell will be back right after this that's what happen

powell addressed that.tainly you look at it from the perspective of how rich the market got from then until now. there is a very similar psyche in this market, which is that there does not seem to be a a lot of interest in fundamentals. by the way, i don't think that is just a stockmarket thing. i think that is fueling a lot places. it really did not seem to care a lot about asset prices. nir, always great to have you. our thanks to nir kaissar. joe: time for smart charts with abigail doolittle. this week, your guest stocks may be nearing the top. abigail: you are right. making this possible call, not entirely certain, david keller of stockcharts.com. there are lots of risk events but you are taking a little bit of a contrarian view? david: i think we are entering into the seasonally strongest part of the year. people as at of result get very excited thinking we will keep going up forever. as a reality, just up a little bit, we might not be as something.as i have seen some rings that they lead you to a litt

plus, chairman powell's news conference coming up don't want to miss that.here is the countdown clock we're about two minutes ay om return with the bond team at leaf blowers. you should be mad your neighbor always wants to hang out. and you should be mad your smart fridge is unnecessarily complicated. make ice. making ice. but you're not mad because you have e*trade which isn't complicated. their tools make trading quicker and simpler so you can take on the markets with confidence. don't get mad get e*trade and start trading commission free today. trading floor in downtown los angeles back with jeffrey gunlock today. joe, i'm going to open the floor to you you have a question for jeffrey. >> thank you, scott. fantastic content so far, jeffrey and scott. i'm ready to go out and buy my tips, jeffrey, after listening to you but i want to ask you about the mortgage market. >> i like tips. >> yeah. certainly, the -- certainly, the way you sound today, we -- we both like tips but the mortgage market. the lion share of allocation for taxable fixed income, portfolio

obviously if the economy changes, jay powell will have to react. indications from asia are people see this as an asymmetrical policy. the fed has sent a very high bar for raising interest rates. they are willing to let inflation run a little hot if necessary. on the downside, should the economy deteriorate, they certainly should be ready for lower interest rates again. people are interpreting this as a goldilocks scenario. the fed is telling you rates are certainly on hold through the end of next year, and that's not surprising considering it is an election year, but should the need arise, we will be ready to put our foot on the pedal and lower rates a bit as well. but in terms of hiking interest rates, the bar is very high, almost uneventful for 2020. this is a good scenario. asian equities are off to a good start today. that may be true for the rest of the world once the ecb meeting is out-of-the-way. for now, people like what they are hearing from jerome powell and the fed. nejra: i want to know whether a lot of the reaction from asia, particula

powell votes aye. ms. escobar votes aye. mr. collins votes no. mr. sensenbrenner votes no. mr. shabbot votes no. mr. gomer votes no. mr. jordan votes no. mr. buck votes no. mr. radcliff votes no. ms. robe votes no. mr. gaetz votes no. mr. johnson of louisiana votes no. mr. biggs votes no. mr. mcclintock votes no. ms. lesco votes no. mr. cline mr. no. mr. armstrong votes no. mr. stubie votes no. >> every member voted who wishes to vote? >> chairman, may i ask how i'm recorded? >> how is the gentleman recorded? >> mr. gomer, you're reported as no. >> i wanted to make sure. >> clerk will report. >> mr. chairman, there are 23 ayes and 17 noes. >> the articles are agreed to. impeaching president donald j. president trump for obstructing congress. the clerk will call the roll. >> mr. nadler votes aye. ms. jackson lee votes aye. mr. cohen votes aye. mr. johnson of georgia votes aye. mr. deutsche votes aye. ms. bass votes aye. mr. richmond votes yes. mr. jeffries votes aye. m mr. swalwell votes aye. mr. lu. mr. craskin votes aye. ms. jaipol votes aye. ms. demings votes aye. mr. carrera

miss my personal powell votes aye. ms. escobar votes aye. -- mr. collins votes no. mr. sensenbrenner votes no. mr. showbiz -- mr. shaaban is votes no. votes no. mr. jordan votes no. mr. buck votes no. mr. riegler's -- mr. reckless votes no. ms. robie votes no. mr. gates votes no. mr. johnson of louisiana votes no. mr. biggs votes no. mr. mcclintock votes no. miss lesko votes no. mr. rest and dollar -- russians all are votes no. r votes no.hale mr. armstrong votes no. mr. steube votes no. >> has every member who has wished to vote voted? how is the gentleman recorded? >> mr. gomer to his -- gohmert is recorded as no. mr. chairman, there are 23 ayes and 17 knows. -- no's. >> impeaching president trump for obstruction of congress. the clerk will call the roll. >> mr. nablus votes -- mr. nadler votes aye. ms. jackson lee votes aye. mr. cohen votes aye. mr. johnson of georgia votes aye . .r. deutsch votes aye ms. bass votes i -- votes aye. mr. richmond votes yes. mr. jeffries votes aye. mr. cicilline votes aye. mr. swalwell votes aye. .r. raskin votes aye ms. jayapal votes a

does what jay powell said yesterday change in any way how you see today? >> no.y boring yesterday. we've been waiting for a boring jay powell for the better part of a year and a half the fed has been remarkable. the market thought we were headed to a recession and we needed rate cuts to zero the fed was able to pivot and state that it doesn't need anymore. the market may be stabilizing. >> how are you positioning then for a fed in a wait and watch mode for 2020? >> we've taken them off the table. that is the key thing. rather than worrying about the fed being overly aggressive, we are focused on the fact that earnings growth looks like it is going to re5:0 seaccelerate >> instead, you are worried about trade? >> i don't know if we are worried. we are hopeful on trade that it doesn't get worse. >> what would worse look like to you? >> if we wake up on monday and it turns out we've gone forward with these tariffs and the rhetoric has heated up, that represents a risk to next year's earnings numbers if it works out, we may get a temporary delay in december. >> some

powell and crew. so what should you expect for the fed and company for the next year we're going to dive in the barrels, they are just piling up. chevron taking a massive ride down ceo effectively saying, well, prices, they're not going anywhere higher from here. this follows a build up in inventories that took the market by surprise. we will dig into that as well. and here is a riddle for you what do area 51, disney plus, the avengers, and sri lanka have in common? there is an answer and we've got it ahead but right now, to the man who probably knows the answer because he looked at inews dominic chu with a look at the markets. >> i do know the answer to that but i'm going to save that that's a great tease but anyway, this is a very calm market, brian. you would expect this going into the last fed decision of the year of the decade, as you put it the dow industrial's down about 41 points right now. so fairly even at this stage but remember, at the highs, we were only up about 23 points very still mark

jay powell indicates little chance of a move in the coming year.terling will be in the spotlight is the u.k. heads to the polls. source -- sores -- soars. australian markets have just open for trade. let's turn to sophie for what to watch. sophie: it's hitting the snooze button with markets little changed to the downside. aussie dollar just retreating a touch. we are also keeping an eye on what is happening with the u.k. election taking place thursday and india very much focused as we get health checks on the economy. we are also waiting on japanese machine orders. we have singapore on the docket as well. paul: thanks very much. let's check in on first word news with ritika gupta. ritika: the u.k. vote later thursday in an election that will define its relationship with the eu for years to come. brexit has been the central issue in the campaign with prime minister boris johnson insisting the contingency board will only happen quickly if the conservatives turn a strong victory. uncertainty surrounding brexit has led to eu leaders hoping for a johnso

jay powell indicating there is no policy change. robust. economy remains we have our guest in hong kong and local head of east asia. we also welcome the principal global investor of chief global economist. with you.start off we did not see a great delivery action in u.s. equity markets as the fed chair was speaking. do you expect to see much of an impact in asian markets? >> not really. as he said, it has been well priced. -- as you said, it has been well priced. policy will give time and space for asian central banks to reengage and recalibrate their policies. i expect a number of them will want to ease. but into 2020, it will mean weaker asian currencies. bob, i want to bring you into this point. -- in at this point. to what degree is the fed's decision going to ease pressure on some of asia's central banks to take action? bob: i think that is exactly what has happened. cutsu look at the three the fed has had so far this year , it certainly allowed in india and some other countries, it allowed them to be much more accommodating. and i thi

that is what we heard from powell yesterday.are doing, i think what it means is in the next recession or through the next cycle, they are not going to feel that urgency to ort off the zero lower bound normalized policy the way they did in 2015, 2016. so i think that sense of inflation pressures and the risks to inflation, that skew has shifted from upside to downside. alix: how do you then think of 2020 in relation to a health care call? tony: i think there will be political noise, but i don't think that will have a real impact on earnings. if you look at the sector this year, it is up about 17%. good, not as good as the s&p 500. a lot of that is partially because they are less economically sensitive. it is bad in a massive bull market, but good in a slower market. and then the political pressures, but i think that has impacted evaluations, so you are now a really good starting point. it is one of the lower valued sectors in the market, particularly when youth about stability sectors. most of the stability sectors have been pric

mr powell has stressed that uncertainty is bad for the us economy.ould go a long way in making business feel more confident about the future. as samira was saying there — the us—china trade war is an ongoing worry for the fed and us business. and it could be about to escalate. president trump is expected to meet with top trade advisers later to discuss whether to go ahead with a fresh round of tariffs on some $160 billion in chinese goods — due to come in on sunday. rico hizon is following the story in singapore. nice to see you. this is the real concern, that at the moment these chinese are slapped on imports if there is no change. absolutely. this meeting of donald trump with his trade advisors will indeed be very critical and sources say that donald trump ‘s advisors are divided about whether to proceed with the tariffs and what impacts such a move would have on us financial markets. as for china, it could cripple their slowing economy to last export numbers to the us showed an over 20% client to sally, negotiations have failed to produce deals on

mucarsel-powell: -- ms. mucarsel-powell: exactly. i think the constitution demands that the president follow the rule of law and fight to keep our elections fair, free of corruption and free of russian interference. excuse me, foreign interference. now, i know that i was elected by the people of florida. and i work only for the people of this country. i'm not going to let -- while i'm in office -- sbin interfere in our elections or threaten our democracy. the continuing pattern of behavior we've seen this from -- from this president should be a warning to the american people that it is a beginning of a dictatorship which i have seen in latin america. i've witnessed men in office abuse the power, inviting foreign interference, and also obstructing any checks on their power. the constitution, the constitution has no partisan allegiance. we cannot allow this behavior from this president or any future president. our democracy depends on it. mr. nadler: the gentlelady yields back the balance of her time. i recognize mr. jordan for the pur

president trump has attacked powell for not lowering rates. stocks closed slightly higher after powell's comments. >>> police officers in jersey city, new jersey, lining the streets for joseph sales, who died going after gunmen that attacking a kosher market. he was in charge of trying to get guns off of the street. investigators are trying to determine a motive for the attack. but "the new york times" is reporting that one of the two shooters is linked to the black hebrew movement. the movement has many splinter groups but they say they are all united with the belief that african-americans are the true descendants of the jews in the bible. cnn's miguel marquez has more on the victims and the investigation. >> reporter: this is the jewish market where this horrific incident took place. you can see it's boarded up, still surrounded by police tape. the mayor of jersey city saying there's no ifs, ands or buts about it, this is a hate crime. >> we have to be aggressive and call it out for what it is. people say we should review things and take our

>> powell: i don't.e how you give a little insight of, like, what's going on in our community. i know that much about your art. so, that much i really like. >> cooper: bradford's latest work continues to focus on difficult and controversial issues. this painting, which is prominently displayed in the los angeles county museum of art, is called "150 portrait tone," and was made in response to the 2016 fatal police shooting of philando castile during a traffic stop in minnesota. >> diamond reynolds: he was trying to get out his i.d. in his wallet, out his pocket, and he let the officer know. >> cooper: castile's girlfriend, diamond reynolds, live-streamed the incident. bradford was so haunted by her words, he made them into this painting. >> diamond reynolds: "please don't tell me this, lord. please, jesus, don't tell me that he's gone." >> cooper: it's really the conversation that his girlfriend is having. >> bradford: with multiple people, which i was fascinated by. >> cooper: why were you fascinated by

she, like jay powell, is not a phd economist.he told us in the beginning of the press conference she was going to speak plainly and communicate with more people than just the hyper financially minded journalists in the room, but even with regular people. she said, don't try to over interpret what i say. if i change my wording slightly, she doesn't want that to move the markets the way it would or bend mario draghi bernanke change their words slightly. that is one thing i thought was interesting. also, she talked a lot about the review that they are going to do, this strategic review. she said it is about time. they've had 16 years since the last one. she knows they were very busy previously, but now is about time to do it. she says it is not going to take that long. she wants to start in january at some point and be done by the end of 2020. hopefully we will be getting more news on that at each press conference that we go to. then, as you say, she was optimistic. she said there is still risk to the downside, but they have lessene

let's start with edward, investors seem to like what chair powell had to say. reporter: yeah, just somewhat, right? 29 or so points, somewhat like it lauren. the federal reserve chairman's touted this very strong economy that we're in right now. even at one point, signaled taking credit for keeping the expansion going through the rate cuts they made, powell said it was a difficult year where the fed reversed course. >> we've cut rates three times since july. that's 75 basis points worth of cuts and we do believe that monetary policy operates with long and variable lags and that it'll take some time before the full effects of those actions are seen in the economy. so that'll take some time, so that's one reason to hold back and wait. reporter: and powell is watching inflation very closely, core pce inflation at 1.3% over the past 12 months below their 2% target, powell does signal as you heard no more rate cuts or hikes, for next year. he says consumer spending remains strong and is moving at a strong pace, but in business investment, it is a little bit weaker,

i expect powell will say that as well.f recession or the pub ability of recession in the market's mind, if things go bad, the fed doesn't have much ammo and they will go to zero pretty quickly. if you are pricing in rates stay stable or go to zero, what is the kind of weight you want to put on that? the market is assigning about 25 basis points, 15% to 20% odds, for recession over the next year. . i don't think that is materially wrong. what we are's adjusting is that you probably want to trade it technically because, good news will come and go. the bar for the fed to move becomes relatively high. you probably want to trade that between 35 to 15 basis point of cuts priced in the market until you are to see signs that defensively, something had changed. if there is a trade deal and inflation materially accelerates , if the unemployment stays where it was on friday for six months or so, then you could probably see rates rise in the fed consider a hike potentially at the end of 2020 or 2021, and if things go the other way, if

muesar sell powell. the chair: the gentlewoman from florida and a member opposed each will control five minutes. the gentlewoman is recognized. ms. mucarsel-powell: this amendment would provide that corals are covered by section 102 of the underlying bill, the living shoreline grant program. living shorelines are essential for protecting our coastlines from rising sea levels and stronger wave a ks from intensifying storms my district in south florida benefits greatly from many elements of living shoreline. mangroves protect the shoreline from strong waves and store carbon. our beautiful everglades provide tremendous flood protection, clean our water and provide habitats for so many types of wildlife. another crucial tool in our natural toolbox is coral reefs and we must ensure that projects to protect and restore our reefs are eligible for grants. my district is home to the third largest barrier reef in the world and the only barrier reef in the continental united states. healthy corals dissipate the for

chair powell: good afternoon everyone. to begin, i would like to say a few words about paul volcker, who as you know passed away earlier this week. paul volcker served as federal reserve chair from 1979 to 1987. he accomplished many things during his long and distinguished career at the fed and elsewhere. of course, he is best known for

especially after powell came out and said what he said about tightening, that is not happening.all it whatever you want, protest as much as you like, it is qe. markets are not fooled. they will assume it as such and act accordingly. jonathan: priya, there will be people screaming at the tv saying i agree with chairman powell, it is not qe. what is it, and does it matter what we call it? priya: this is a communication challenge for the fed. they are trying to put reserves in the system. they should not have let the portfolio run off as long as they did. they are trying to unwind that. if the equity market is here because of this so-called qe, then it's a mistake. run for the hills. if the equity market is here because the consumer is resilient, then there is some merit to it. we are in this inflection point. is the consumer going to stay resilient? that should be the call for equity, not this qe balance sheet. krishna: that's an interesting point, but from an investor perspective, what matters? what matters is, are rates going to be relatively low for the foreseeable future? that

that i shouldn't be here fed chair jay powell set to speak later today. we'll tell you what that means

before the police - jillian: several texas democrats including joe moody and beverly powell are calling for stricter gun control including background checks on sales at gun shows. the left calling for more action from donald trump after the hanukkah terror attack in new york earlier this week as the accused stabber is hit with several federal hate crime charges. eric's wallwell says anti-semitism is on the rise and stoked by donald trump won't condemn it. steve cohen tweeting his conduct is made unacceptable conduct acceptable. donald trump condemning the hanukkah attack hours after it happened. earlier he signed an executive order to curb anti-semitism on college campuses. todd: thank you. a police officer is killed by a car chasing after a suspect in tennessee. spencer bristol was running after a man near nashville when he was struck by an oncoming

scarlet: what is the message jay powell wants to deliver?s he want this to be the most boring press conference as possible? david: i hope so. for his sake and for all the tweets that will come blistering out no matter what he says. i think there will be a little message in the dot plot if it suggests interest rates goes up in the future. you will have a former feddy on soon. romaine: things for promoting that. david: that is a good question, do you expect the dot plots to reveal anything we would not expect? otherwise, there is no reason for them to have a meeting. romaine: a lot of the action we see in the market comes when jay powell starts to speak. i year ago, there was criticism about how he was communicating -- commuteriticism getting the fed's strategy toward the market. david: i think he is doing a good job. byis hammered all the time the white house, by trump. andwhile, he lets it roll he does not get into contact. the repoconcern about rate spike. gsib is concern about the scoring of the big banks. there are issues. whether those i

powell will combine the role alongside his coaching position with england.in the dutch league. they're currently on a winter break, pardew‘s first game will be against the bottom side in the division onjanuary 19th. let's have a quick look at some of the day's other headlines. macclesfield have been given the go—ahead to play grimsby on boxing day — their last home match was called off because their ground didn't have a safety certificate. they've also been docked 6 points for not paying wages and failing to fulfil another fixture. the juventus striker mario mandzukic has signed for qatari side al—duhail until 2023. he's been linked with a number of prmier league sides. alexandra bell is considering legal action against uk athletics after being overlooked for funding for the tokyo olympics. she was the top british woman over 800 metres at the world championships but wasn't selected for the world—class programme. australian open organisers have increased the prize money to more than £38m with the biggest gains in the early rounds. first round losers will rece

one other thing jay powell is going to get asked about, and this is going to be important, i went to show this chart here.

mirroring the trump add ming station's hardline on trade. >> we await the fed chairman jerome powell. >> today we got more certainty about fed policy >> yes, we did they're clearly saying they don't want to change rates and their statement makes that point. also this weekend, we could have a clear path toward brexit here. and then also if we have a deal to not go ahead with the december 15th tariffs, it's more uncertainty. we always talk about uncertainty rising this is a week in which uncertainty might fall >> there are major protests going on for hong kong fighting for democracy, the chinese may come in with a heavier hand the currency is sliding, their economy is getting shakier, they're not talking about -- >> it's a great point. they have every incentive to come to the table to have some sort of win. yes, we have a political election in 2020, where president trump needs that as well >> think about where we're waiting from we're waiting for a point where bonds and cash aren't matching inflation. therefore, i think you think about equities look beyond 2020 if you do that, i do thin

>> despite that pray several texas democrats including congressman joe moody and beverly powell are calling for stricter gun control including background checks on sales at gun shows. the left calling for more action from donald trump after the hanukkah terror attack in new york earlier this week as the accused stab her is with several federal hate crime charges. eric smallwell says anti-semitism is on the rise being stoked by donald trump who won't condemn it. and steve cohen tweeting in part this contract has made an accessible conduct acceptable. donald trump condemning the attack hours after it happened, earlier this month signed an executive order to curb anti-semitism on college campuses. >> thank you, we will talk about this with guests. right now new overnight a police officer hit by a car and killed

the pressure is on with jay powell in the limelight. $1.8 trillion and beyond the world's largest ipo surging past expectations on the first day of trading we have a live report from saudi arabia coming up >> delay to a deal investors hopeful. the u.s. will kick the canon the tariff hike in december on china. >> facebook falling. a new report says the social media giant is no longer one of the best places to work. >> and a strike again. yankees inking the largest contract again for a major league pitcher all of this as "worldwide exchange" begins right now ♪ good morning and welcome to the show i'm dominic chu in for brian sullivan trying to snap a two-day losing streak all remain negative so far the dow would open up just about four points, the s&p about one point and the nasdaq about seven points pointing to the big fed decision later today. we are seeing some signs here, movement there to the down side 1.86%. 10-year note deals, two-year note deals ahead there you can see the major board says hang seng up, shanghai compositity up and the kospi about flat for japan in european trade

mr powell has stressed that uncertainty is bad for the us economy and getting a trade deal with chinafeel more confident about the future. time now for our daily look at some of the newspaper and website stories which have caught our eye. joining me is james innes, author and entrepeneur. one person in the media has been focused on for the past couple of days was part of our programme yesterday, greta thunberg. time person of the year which is an honour she shares with lots of people including donald trump with him she gets on very notoriously. what is interesting is the irony. she said the climate movement does not need any more awards and then of course we gave her one. there is a hint of irony. last night she gave a major speech at a conference and she said almost nothing is being done. this award is not going to stop the climate crisis. how much difference do you think she is making?” climate crisis. how much difference do you think she is making? i do think she is making a difference. i worry about how it is an individual and the impact this might have on the rest of her life. sh

i metet with chairman powell multiple times as recent as thit morning. weekly imes.ed in our meeting making sure that the fem is prepared for year-end ac activities so that there are ample reserves.es tha it think it was a result of may different issues that came together in one day.cess o one of them being, as you've t l outlined certain regulatory issues and banks required to have excess overdrafts for intraday. so this is not liquidity -- normal liquidity and this is soc intraday liquidity.nto the there is also the impact of thee federal reserve hold it, and we had a large payment of taxes and you had money coming out of banks going into the treasury k. counts and this is something imt that in my role as treasury secretary chairman powell and i are wokking together on. >> along those line, the impacte of regulation can impact monetary policy, and when you have regulation demanding banks hold assets and they believe th they shouldis not use those tray because of a regulation that becomes problematic, and so i think a systemic review of this to ensure t

eastern, and of course, the powell news conference at 2:30. let's get straight to our first guest for more on all these issues, tom lee, fundstrat global advisors managing partner and head of research, from our boston office. clearly, we are all but certain we are not going to get a rate move today, but there may be some significant changes in language or some shifting in position. what are you anticipating out of the fed? tom: i think the most important to reallyor the fed not surprising market. i think that was one of the negative issues. finally the fed has caught up with where the market expects not only rates to be, but foreign policy. questions,s do have it really has to do with the balance sheet because there have been quite a lot of changes, and as you know, into year end we have the short-term issue around repo markets, so how they are prepared to deal with that. vonnie: this is a question at the last news conference as well. it seemed like the fed had every thing under control, but we had some new information. what would you ask fed

stronger euro off the powell press conference.ased with curve dynamics. a flatter curve earlier and we move onto a slightly steeper curve this morning. sterling, 1.3161. francine: i looked at sterling amid the voting. smbs franc rising after the released a staunch defense of negative rates while leaving them unchanged. european stocks unchanged. minutes ago, we heard from china but they are ready to act if necessary in monetary policy. tom: we have lots of things to talk about and one is the european central bank. talking to jean-claude trichet a few days ago, talking about the ecb, a younger institution. us, chiefemer joins economic advisor. what will you listen for today? moritz: good morning. it is good to be back. today is a pivotal meeting for the ecb and lagarde specifically. no one would expect policy decisions to be taken today. i think there is broad consensus , but there will be scrutiny and the press conference at half past two local time about the strategic review that has been so much discussed. i would expect she wou

jay powell has been instrumental, i would say jay powell has been more instrumental in driving the stock market rally, that trump likes to call his own than any other of his three predecessors. there is certain irony there i'm not so sure that you find somebody that the senate confirms that's going to stand up and willingly say as an american i'm willing to take rates into negative territory to satisfy my president. so you know, there is always, there is always a better candidate in the minds of politicians but again, jay powell has done a great, a great favor to president trump. neil: we'll see what happens, danielle. getting a little ahead of ourselves there. i am the one who forced that on you. appreciate your insight. >> not a problem. neil: steve moore looking for a job on the federal reserve. ultimately took himself out of the running but a lot of people still want to see him there, maybe who knows in chairman role. former trump senior economic advisor joins us now. good to see you, steve. >> neil, good to see you. mary -- merry christmas. i saw the president yesterday at the oval

the issue came up in november with jerome powell, the fed chair. you will hear from ohio republican bill. here is what happened. [video clip] >> i would define sustainable as the debt is not growing faster than the economy. our debt is growing faster than our economy by a margin. so i think, by definition, that makes it unsustainable. continue toebt indefinitely grow as a percentage of gdp? at what point do we reach that tipping point where we are unrecoverable? >> it is not a question to which the really is an answer, the specific tipping point. there are examples of countries that have much higher levels. what you do know is that over time as the debt builds up, you will be spending more -- more accurately, our children and grandchildren will be spending more their tax dollars. they have grown interest on the borrowing we have done. as opposed to things we need like education, health care, social security. host: what are you hearing from the fed chair? guest: good point. after the defense, the next thing was interest on the debt. currently some o

the pressure is on with jay powell in the limelight. $1.8 trillion and beyond the world's largest ipo surging past expectations on the first day of trading we have a live report from saudi arabia coming up >> delay to a deal investors hopeful. the u.s. will kick the canon the tariff hike in december on

this is what jerome powell's focuses. vonnie: great story.is, thank you as always for all of your fixed income related stories. let's check in on bloomberg first word news with mark crumpton. mark: president trump says turkey is trying to curb the violence in northwest syria but its efforts are being undermined. on twitter, mr. trump accused russia, iran, and the syrian government of killing thousands of civilians. he says turkey is "working hard to stop the carnage." backed and the russian breakaway regions are planning to conduct a prisoner swap on december 29. a russian newspaper says president vladimir putin and ukrainian president zelensky agreed on a new exchange of prisoners at peace talks held in paris earlier this month. it remains unclear how much these people will be included in the swap. japanese officials are urging business leaders to pay their employees more. shinzo abe and the bank of japan governor spoke at an annual business gathering in tokyo today. they told companies boosting wages would help strengthen the country's econ

and we haven't -- the odds of powell cutting rates in december are zero, right?ctoring that in, but if we start to see the market slide, that has to be factored in yet again. and that's what sends the market even higher than people would have thought >> does anybody in the world of trading and traders care about impeachment? >> you know, it's funny you say that, tyler. this market, it's not as if they don't care about it. it's, they care about things that affect the market and i know that's your point of the question so we've seen powell get brushed off to the side. we've seen china trade brushed off to the side. impeachment, from everyone i talk to, no one mentions a concern about it in the least. so to answer your question, all we care about is china and powell and the market has shrugged off both recently so i would say that knee-jerk reaction, the market could move lower, but when everyone thinks about this, we've seen this act before and it usually winds up in all-time highs for the marketplace. i think you still wind up setting up for about 3,200 year end.

jon: there will be people screaming at the tbi agree with chairman powell this is not qe.oes it matter what we call it if markets ultimately treat it like qe? priya: i completely agree with you. they should not have let the portfolio runoff as long as they should. itthe equity market is here, is a big mistake, run for the hills. the consumer is resilient. -- is the consumer going to stay resilient? it should not be this qe expansion. jon: -- krishna: from and investors expect -- and investors matters is areat the rates going to be low for the foreseeable future? jon: coming up on the program, the auction block. that conversation coming up. this is bloomberg real yield. ♪ ♪ jon: i am jonathan ferro. this is bloomberg real yield. i want to go to asia. the market chalking up a new for your record. investment grade sales remain subdued, but this week wrecked up almost 4 billion. in high yield, twitter is offering front and center upsizing its -- sticking with high yield, here is michael collins on whether it is time to stop a buying triple c debt. it isple c spreads are -- a w