tom: that is president rosengren's style since 2007.would suggest is that everyone has to pay respect for the medical moment, but there is a real sequence here of how will washington and the different regional feds react. clearly it is just the now, that really we haven't heard from the many boards of directors of our federal reserve banks. jonathan: who do we need to hear from next? we don't want to complete the issue the president is having with his health with what has happened more recently over the last couple of weeks. it is up for the president of the boston fed. i do not want to get into the business of working out what people are thinking. i can only read the letter as it reads for these general reserve. -- for the chair of the federal reserve. what is going to be interesting is what robert kaplan has to say in the coming weeks as well. that would be a very interesting one to read, after the controversy that both of those individuals have been under. tom: with the depth of our economic reporting, the different cultures of the r

robert kaplan and eric rosengren quitting within hours of each other.his follows an embarrassing disclosure about their trading activities. kaplan sat down -- set to step down in october 8. rosengren, who cited health concerns, leaves at the end of this month. let's get more into these markets. thank you so much for joining us this morning. let's start with this changing of officials at the fed. do you foresee this really changing the shape and the pace of tightening to come from the central bank? >> absolutely, it is interesting, the context of who votes next year on the fomc. we had some concerns that they were leaning in a more hawkish direction next year. the resignation of these two officials could alleviate some of those concerns in terms of the growing hawkish nest of the voting members. that said, the fed officials yesterday and even in the recent meeting, they pretty much made it clear that the bar to commence tapering is all but met when you look at inflation, when you look at employment. so we are pretty sure to get that beginning soon, perha

robert kaplan has joined eric rosengren in early retirement.r scrutiny after trading last year. kaplan said the recent focus on his financial disclosures risks becoming a distraction. olaf scholz is calling on potential partners to join him in a new government as soon as possible. he appealed to the greens and pro business free democrats to back a three way coalition. armin laschet says he will try to forge a majority. allies say it cannot happen with a second-place finish. a trade meeting between the u.s. and eu will be narrower in scope. a joint statement said they are up in the air. france would not agree to the draft conclusion. facebook has halted plans for a special instagram platform for children under 13 after critics said it would be harmful. the social media giant said children were lying about their age to join instagram. facebook says it has not abandoned the idea but it is taking time to consult with experts. global news, 24 hours a day, on air and at bloomberg quicktake, powered by more than 2700 journalists and analysts in more t

boston fed president eric rosengren set to retire september 30th he's headed the bank for the past 13 years. he said he would step down for health reasons he announced as he candidate for a kidney transplant. he imagined to retire in june 2022 disclosure forms show he made 37 trades in recent weeks last year the fed was buying billions of dollars of mbs powell may well face questions about these conflicts tomorrow including his own ownership of individual bonds which he owned before the fed last year began buying munis in his testimony, powell will say that he sees upward pressure from supply bottle necks they've lased longer than expected and there's potential upside risk inflation from these bottle zmeks other supply constraints. the fed would respond to higher sustained inflation if it became a serious concern, powell said on the economy strong growth is expected in the second half of the year. in some industries, he said supply constraints may well restrain activity. labor market conditions, he says, have continued to improve. melissa? >> september 30 seems like a key date that wa

he did not mention what trades specifically and who is being looked at, but fed presidents rosengren kaplan resigned yesterday with questions surrounding trade practices last year >> we are also looking carefully at the trading that was done to make sure that it is in compliance with our rules and with the law >> reporter: both kaplan and rosengren said their trading were within the law and fed's code of conduct. powell said it may well be the case, showing the need for rules to change. >> even if as appears to be the case, i think appears to be the case, these trades were in compliance with the existing rules, that just tells you that the problem is that the rules and the practices and the disclosure needs to be improved. >> reporter: powell has promised a wide ranging review of the fed's code of conduct in the wake of the controversy. banking committee chair told ylan mui, you saw her in the previous report, he thinks fed officials should be barred from trading and owning individual stocks kelly. >> steve, perhaps the larger narrative here is whether fed chair powell is out of a jo

in the case of rosengren, they bought it throughout the year. there is a blacked out signature on his disclosure form, so he did not believe he was breaking the rules. kaplan and rosengren both said, we shouldn't be doing this, so perhaps they're acknowledging they shouldn't have done it. >> thank you good to have that report today >>> coming up, rising rates are having a big impact on the housing and mortgage market. the fallout from the eviction ban and the long term risks to the real estate market >>> plus vietnam is the world's third largest producer of textiles and garments. but with growing concerns about covid's impact on manufacturing there, where else could companies go if they're trying to go beyond vietnam we're back in a moment >> announcer: this is "the exchange" on cnbc. >>> welcome back to "the exchange." the housing market's been on a tear since the pandemic with people relocating and looking for bigger properties, and prices have soared as a result zillow saying prices are up nearly 18% year-on-year in line with other recent dat

. >> but, steve, how about the personnel move eric rosengren retiring. have the chair himself, one or two others whose seats have to be filled or announced in coming months, now all of a sudden a fourth? i think this could change the politics for the fed, right? >> yes well, part of it is that the fed, as you know, kelly, changes anyway, at least the voting members in the -- the president voting members will change rosengren was going to be a voter next year so we don't know who will fill that slot right now. there was a first vice president who will take over eric rosengren citing health issues saying he will resign cemen september 30th instead of planned june of 2022 when he would have to retire because of hitting the 65-age limit there he was also among those mentioned in the conflict of interest discussions we've been having regarding eric rosengren buying mortgage-backed securities while the fed was buying and making multiple trades in that he said as of september 30th he would sell but now he will be resigning. >> his replacement as boston fed, how

robert kaplan has joined eric rosengren with retirement.e recent focus on his financial disclosures risks becoming a distraction. it was confirmed that rosengren will retire due to an ongoing health condition. and one item is narrower in scope. results still up in the air, with disagreements among eu countries about changes. also, a lack of agreement with the technology meeting planned for wednesday in the u.s. the white house is refusing items with a huawei release and of two canadians accused of spying. they do not refer to the episode as a prisoner swap. there were no questions as to whether china would be encouraged to seize foreign hostages in the future. japan will reportedly list -- lift its virus state of emergency from friday as new infections received. one broadcaster says regional authorities make a -- keep some restrictions in place. more than 50% of the japanese population is fully immunized. and a prime minister's term in office, a replacement selected on wednesday. global news, 24 hours a day, on air and on bloomberg quicktak

stocks throughout the year, rosengren 37 trades.and holdings did not violate ethics rules but both rosengren and kaplan said they will stop trading. chair powell directed board staff to take a fresh and comprehensive look around the ethics rules around permissible financial holdings and activities by senior fed officials. meanwhile federal reserve officials late friday said powell actually owned individual municipal bonds in a joint account over which he did have control. officials had originally told cnbc that he owned them in a family trust over which he had no control they said the holdings were reviewed by ethics officers and not found to be in contradict. he held between $1.25 and $2.5 million in muni bonds while the fed bought $6 million in municipal bonds. they said the overall disclosure process and the code of conduct are, quote, grossly deficient. becky, how deficient are they? we read them and you couldn't tell where the ownership of those muni bonds was a federal reserve ethics officer looked at them and also could not t

in either case, it appeared really that kaplan or rosengren were benefiting themselves.y were making the arguments that were going against their book, as it were. but you don't want that perception. kailey: those on capitol hill have paid attention to this. elizabeth warren wrote a letter to the regional fed president saying you need to change your policies. there has also been criticism around the fed's response to capital change and it's become a large question over whether chairman pat will be reappointed for a second term. is there anything the fed can do about climate change? mike: there are things they can do, but should they? they could say that they will buy green bonds as a part of qe, and they would have to define what green bonds are. they are working on regulations for banks, putting into stress test climate change to make sure banks don't own property that will be underwater and then cause a systemic problem. the issue is the progressives would like them to do something like the ecb, which is following the guidance of european politicians, making it a center

taylor: of course, we are all focused on the breaking news about rosengren and kaplan. some of the supply chain issues in the bottlenecks. qe does not fix bottlenecks. it does not make people get vaccines. what does it do -- a little bit out of the purview? mike: the only thing the fed can do in reaction to this, if they were worried about inflation rates, interest rates? at this point, that would risk the economy. at this point, you can read into that that they have made the choice to let the economy -- it is a calculated risk. as far as supply chains, not much they can do is -- can do except hope production continues to ramp up. even if they raise rates, if they stop qe, it will change investment decisions. taylor: we continue to focus on some of those inflationary pressures, the supply chain conversation. we will do that with the port of los angeles's executive director. we will be discussing some of the real-world effects. what did you think, 55, 56 ships? romaine: i was thinking it was 62. taylor: the port of long beach, 55 ships. romaine: my sofa is on one of thos

two presidents, rosengren and kaplan resigning. following criticism over their investing activities last year when the fed was actively buying assets. today we are going to put a spotlight on insider trading of the corporate kind. new research showing this trend is growing everywhere. it is seeing regulators and the department of justice and companies not doing anything to stop it. a big take on an article today that really delve into this. taylor: it will be out on newsstands shortly for bloomberg businessweek. liam takes a lot of these big stories and digests it for us. what does your research show you when it comes to insider trading? >> it has to do with how well corporate insiders do, executives, board members. people with 10% or more shareholding. the research is becoming more clear that insiders outperform the stock market. . aggressively. over the last five years, -- the stock market massively. over the last five years, insiders are performed the s&p 500 by an average of 5%. in particular, for example, [indiscernible] and t

so both robert kaplan of the dallas fed and eric rosengren leaving the federal reserve.quickly thank you very much. we still see a slight gain for the dow up 66 points but as we break that news, we do have the s&p down 12, nasdaq lower by 78. that is going to do it. as we hear the closing bell for "the claman countdown." [closing bell rings] i will see you tomorrow. "kudlow" is next. thanks very much for joining us. we have a big show tomorrow. don't miss it. ♪. larry: hello, everyone, welcome to "kudlow." i'm larry kudlow. save america kill the bill but we still don't know exactly what's in this bill. for the latest let's go to hillary vaughn live from capitol hill in the swamp. good evening, hilly. reporter: larry, there is a lot stuffed into the social spending package but a lot leaves the price tag a mystery. the cbo has not offered their score how much these things will cost but they're pricey,

boston fed president eric rosengren announcing that he will sell all the individual stocks he owns by september 30th and reinvest the proceeds into diversified index funds or cash savings. he says he will not trade in accounts while serving as fed president of boston. he says the investment decisions he made last year were permissible, but he's addressing this issue to avoid any appearance of conflict obviously, this story comes after disclosure that robert kaplan, the dallas fed president, was involved in, pardon me, multiple trades in excess of a million dollars over the course of 2020 and boston fed president also involved in a series of trades involving a whole matter of stocks, dow, alibaba, at&t owns a bunch of residential and other mortgages. verizon. most of his trades, however, are much smaller than robert kaplan's all listed between 1,000 and 50,000, but they were at least, i'm looking at the form now. 50 purchases and sales for stocks during the year >> 50 transactions during one year steve, i'm just curious. you interview fed officials all the time and during the jackson h

rosengren of the boston fed owned shares as well as others.ed's ethics rules. both pledged to divest their holdings. a spokesperson for federal reserve chairman jerome powell said that in the statement the chairman ordered sweeping ethics review of the u.s. central bank, quote, because the trust of the american people is essential for the federal reserve to effectively carry out our important mission. chair powell late last week directed board staff to take a fresh and comprehensive look at the ethics rules around permissible financial holdings and activities by senior fed officials. now following these revelations of financial holdings democratic senator elizabeth warren sent a letter wednesday to all 12 regional fed banks urging that they ban the ownership of stocks by senior officials. the board of governors generally follows the same rules on investing and trading as other government agencies. federal reserve board members are prohibited from making trades before each fed meeting and are not supposed to hold a security for fewer than 30 da

>> i'm not cool with it and i think it's important to tell viewers that eric rosengren and kaplan astocks admitted to saying that is the potential optics of it. it could be bad, and optics matter if you are a fed official and you are trading, buying and selling stocks and other securities that are tied to interest rates correlated to interest-rate movements when you make the decision on interest rate movements and you know what the decision will be prior to the public. if that's not insider trading, i don't know what is. charles: then, you look at these career politicians and it's a shame, i mean, they have been there 20, 30, 40 years and somehow they come out millionaires and their spouses make millions. we see their trades, i mean, they are buying calls and options getting ahead of the spending bill. it's hard not to believe that you load up on a ev stock and you won't put a lot of ev spending in the spending bill or when you load up on nvidia you won't put something in the bill that pops up in nvidia. why can't we get that curved? >> retail investors are outrage and that's why peo

was the subject of a conflict of interest stories last week so eric rosengren, boston fed presidents years of his career he was praised by fed chair jay powell for his service. >> stepping down this week >> i guess that is this week, yes. yes, instead he had said -- he had said everlyier, becky, that he was going to sell all of his individual stocks as of september 30th, and not make any trades while he was fed president, but now september 30th, instead, is his resignation day. >> one quick question. we do have yellen and powell, who will be speaking before congress this week anything we should be looking out for? >> well, i think both of them will get pressed on this issue of the potential government shutdown on the one hand, how yellen -- yellen will be pressed on how long she can hold out before the treasury can't pay bills anymore, but i think powell will be pressed on how the fed responds there was an interesting story in "wall street journal," about potential actions the fed can take when the treasury can't pay its bills. there's a plan inside the fed, even though they don't li

now, eric rosengren. it's going to be a very busy couple of months for the biden administration to choose who is going to stay, who is going to go, and now the regional banks are starting to lose people in that will raise the issue of who votes on what next year and what they think. guy: yeah, it's another layer of complication on top of a fairly complicated picture for the fed. mike mckee, thank you very much indeed. we will see what happens with the chair, of course. politics, democrats heading for a short down -- showdown this week over the biden economic agenda with a planned vote on a 500 $50 billion infrastructure package. our bloomberg correspondent joins us now. does pelosi have the votes? >> she clearly didn't have them for the day, which is what the chair told cnn this weekend, saying there will be a vote on thursday and the measure will be brought to the house floor for debate starting today and the democrats will be meeting at 530 p.m. starting today, kicking off a very, very busy week. what i

initial disclosures of eric rosengren lists four real estate investment -- multiple purchases and salesboston fed says the trades were consistent with the systems strong ethics rules. new york has banned the sales of gas powered trucks starting in 2035, joining california in the most aggressive plan to cut greenhouse gas emissions. all new passenger vehicles sold or leased to the state will have to be zero omissions. the bill also culture medium in heaven the -- heavy duty vehicles to comply by 2025. the gaetz is taking control of the four season. the travel sector will rebound due to a pandemic induced swap could -- >> cascade will pay $2.2 billion in cash to boost its share to 71% from 48%. global news, 24 hours a day, on air and on bloomberg quicktake, powered by more than 2700 journalists and analysts in more than 120 countries. >> chinese adrs tumbled in the year accession after chinese video game makers were summoned by regulators. ne-yo unveils the biggest u.s. fundraising plan. for the stories, let's bring in stephen engle. let's start with online gaming. what happened? >> no on

i'd love to start off on this -- these resignations rosengren and caplan, particularly, who took yourghts about these questions? and many may be perception related, nonetheless, the decision caplan made to trade certain stocks and other financial instruments. >> well, neither of these bank presidents violated the existing rules. i think the rules are going to have to be changed it is a perception issue in the case of rob caplan, who's a very good policy maker and excellent successor to me, and did even better than me, i think, in managing the bank. the timing creates perception issues it's basically a risk mitigation strategy using calls and puts, which is almost incomprehensible to anybody who looks at the system and doesn't understand finance. it was timed very poorly so t was an area of judgment i think he made the right decision and i think erick did also, given his kidney problems. although, he was going to retire in a couple of months more and very importantly, for the federal reserve bank, the dallas board, to create some new boundaries, new baselines. but please don't miss und

the presidents of the fed branches in boston and dallas, rosengren and robert kaplan, have announcedring. that is after questions arose about their trading activities last year. female students will not be returning to kabul university. the militant group has said women will not be allowed to work and study within the bounds of

continue investigating to decide if anything should be done, but i think also the argument that rosengrenaplan were talking against their book in terms of what would have benefited them personally in terms of monetary policy is also a defense they are going to use. tom: michael mckee with a huge day in international economics. nothing more surprising than what we have seen from norway. they have their own pass, some of it based on oil prosperity. wasting olson joins us now, norges bank -- oystein olsen joins us now, norges bank of honor. you are raising interest rates. why? gov. olsen: the background is that we have been hit by the pandemic, but through the last year, we have seen this recovery of the economy, and we are now close to a normal level, and the environment which has come down significant leap. given the normalization of the economy, it is possible to start from a very low level. so we made the first today and will increase by 25 basis points. tom: you see the central banker to the world, as mr. powell is called, take a certain tack yesterday as well. discuss the independence

boston president, rosengren received mutual investment trust.de 37 separate trades in 20 twen the fed last year purchasing almost $700 billion. he announced he would stop trading while he's president and sell shares. robert caplan, actively traded individual stocks, those are actions that he would take a spokesman for rosengren, said quote, he made sure his personal saving and investment transactions complied to what was permissible under federal rules. and the fed received municipal bonds. they were a small part of his overall portfolio. they were held while the fed last year bought $21 billion in minies, includic in the state of illinois, where he held bonds. powell had no say over the fed's individual bond purchases and no say over theinvestments in his family's trust a fed ethics officer found the holdings did not violate the ethics fed rules and barkin held between 1.35 and $3 million in bonds in 2020, and last year the fed bought 46 billion of bonds overall none of the holdings or trades appear to be barred by fed's ethics rules but the qu

rosengren and kaplan. rosengren said he stepping down but qualified for a kidney transplant. he is under fire for the trades. he is 64 years old. stuart: they're allowed to make the trades. that is not a problem. kind of looks bad. lauren: powell was asked a lot of questions at the press conference about that. that is a very bad look. the timing is right. june mandatory retirement after 35 years in service. stuart: national guard troops have to fill in at bus drivers. now they could be called to work in hospitals in new york. we'll tell you why it is becoming so difficult to staff hospitals in new york. >>> john bolton warns that the taliban could get their hands on nuclear weapons. kt mcfarland is on the show. she will discuss that with us. >>> remember the 15,000 migrants camped out under the bridge in texas. secretary may i don't mayorkas d most were released into the united states. >> of the 17,400 not deported back or returned to mexico how many were released into the u.s. >> 10,000 or so, 12,000. it could be even high every. stuart: even higher. peter doocy at the white

prior to recent media reports, were you aware that presidents kaplan and rosengren were participating in the last year, and i wonder if you thought those were appropriate. chairman powell: i was not aware of the specifics of what they were doing. let me just say a couple of things about the subject, we understand very well that the trust of the american people is essential for us to effectively carry out our mission. that is why i directed the fed to begin a comprehensive review of ethics rules around permissible activity by fed officials. those rules are, in many respects, the same as those of government agencies, plus a number of things that suppress difficult apply to us. one of those is ownership of certain assets is not allowed -- banks, securities, and other things. secondly, there are times we are not allowed to trade at all, to buy and sell financial assets, and that is the period immediately before or during an fomc meeting. third, regular disclosure. ownership and activities are all disclosed on an annual basis. i would've had to go back and read people's financial disclosur

. >>> and robert kaplan and eric rosengren will sell the holdings over the concerns of trading last year. fed heads say the difficuvestits will be comel kcomplete by the f the year the two pledging not to trade stocks anymore while serving in the current rules. we're back after this. money ma) how do your clients know that? (naj) because as a fiduciary, it's our responsibility to always put clients first. (other money manager) so you do it because you have to? (naj) no, we do it because it's the right thing to do. we help clients enjoy a comfortable retirement. (other money manager) sounds like a big responsibility. (naj) one that we don't take lightly. it's why our fees are structured so we do better when our clients do better. fisher investments is clearly different. (vo) introducing 48 square centimeters of earning potential. flawlessly designed. undeniably versatile. unlimited 2% cash back. this is the card built for... ...real life. (dad) she's gonna be a drummer. (cashier) yeah she is. that's gonna get loud. (dad) right? (vo) the new wells fargo active cash visa credit card. unlimi

rosengren and kaplan are out. many wonder why powell and his muni bond portfolio why he isn't out. it do for the fed to take quick action? >> fed understood the credibility problem they have. they are the steward of the financial markets. anybody that looks like they're taking advantage of the stewardship for personal grain will really hurt the whole organization. on top of that, remember there is a lot going on at the fed when it comes to personnel. not only 2:00 fed president positions open, jay powell is trying to get reappointed. looks like the richard clarida vice chairman of the fed will be out in january. we'll have a new one there and an open fed seat. we could have in 4:00 months, five or six new faces in the federal reserve open market committee that could completely change the whole dynamic of that committee. charles: on that note, a couple weeks ago, there was a lot of scuttlebutt out of d.c. coming in on a monday, i remember, powell will be renominated today. that didn't happen. it hasn't happened. consequently we see the betting odds him being the next chair beginning

eric rest send rosengren is out apparently with health issues. jay powell was shocked schorked over stock invests. >> i think it is still a huge factor. they're going to continue to drag their feet. they're insisting on transitory inflation. maybe they believe transitory is measured in years, not months. i don't know what their definition of transitory is but i think that is by design. they want to have an exit velocity from this recovery that is just massive and that may mean you know, four, 5% inflation and zero to 1% overnight rates. charles: all right. we'll see. maybe they will start measuring it in leap years. we'll all be bullish. gary, phil, jack, thanks a lot, appreciate it. >>> i like to bring in energy and materials strategist, tracy shugart. tracy you've been bullish on oil stocks. you've been on week after week, stay the course, folks, they are going to take off. they're taking off. where do we go from here? >> i think this is it. this is our next leg up higher xlp, oih, held 200 day nicely and bouncing significantly. we have the nat

dallas fed president kaplan and rosengren will sell stock holdings before the taper.t might be a good time. following ethics concerns of the trading in 2020. they will sell all of the stock by the end of the month to avoid any potential -- >> i want to applaud this. >> okay. they will put net proceeds in passive investments. someone said he should not buy s&p 500. >> it was individual stocks. >> yeah. okay s&p 500. that's a case where you might think s&p is betting on -- you are right. you might as well so there is no question. >> no questions. >> when he left -- he didn't have that sweet deal that paulson got? >> keep it >> he left way before then didn't hank get a lot of capital gains when he became treasury secretary? >> if you go into government, directly after, there's a great deal to be had. >> a sweet deal. rosengren said the investment complied with the ethics rules, but he will take the steps to avoid the conflict of interest and kaplan's disclosure revealing the million dollar trades last year with apple and amazon and delta airlines. i guess it was during a

. >>> rosengren will rire on thursday, nine months earlier than previously announced.is also disclosing he qualified for a kidneys tr transplant. >>> and durable goods orders growing 1.8% in august, despite parts and labor shortages and july's drop was revised to a gain, with demand for durable goods has risen 16 of the last 18 months. julia, back to you. >> thanks, rahel. >>> netflix shares on the move falling more than 1% coming off of the first ever fan event on saturday giving users a look at over 70 new series and films to come the next guest says while the event was jam packed with clips and teasers to keep fans excited, there were notably very few new announcements. with us now is bank of america nat shindler, thanks for joining us, i guess my question to you is why do you think it is so important to netflix to do something like that, like that big of an event it hosted on saturday to connect with fans? >> thank you for having me i think that this event was important for netflix just to highlight the difference between it and other services that are out there. t

not sure how to spell it what were we talking about last week, that rosengren and kaplan, didn't they announce they were going to get out of their holdings it would be really interesting if that announcement, if it somehow delays and stay with me on this one, delays any taper talk because think about people like me in a week or two weeks from now when the fed announces a taper, what's the first thing i'm going to say see, they got out of their positions right before the announcement so they have to be very aware of that with all that said, they're way behind probably five years behind is he going to be the grinch there are many i don't think he'll be one of them >> our next guest says despite signs of strength, investors are still betting on a big break for the market mandy, great to see you. >> great to be on the show >> what are you seeing in the derivatives market that makes you believe this >> so, i would say you guys mentioned the wall of worry, that's exactly what we're seeing in the options market. so what stands out to us that even though we've had, what i would characterize a

prior to weekend media reports were you aware of security buying and selling presidents kaplan and rosengrene participating in last year? and i wonder if you thought those were appropriate? >> so no, i was not aware of the specifics of what they were doing. so let me just say a couple things about this subject. we understand very well that the trust of the american people is essential for to us effectively carry out our mission and that's why i directed the fed to begin a comprehensive review of the ethics rules around permissible financial holdings an activity by fed officials. so those rules are in many respects the same as those for government agencies plus a number of things that apply specifically to us because of our business. one of them is, sort of three things i would point to in terms of specific restrictions. one is ownership of certain assets is not allowed. bank, securities, other things. secondly there are times when we're not allowed to trade at all, or buy and sell financial assets. that is the period immediately before, during fomc meeting. third there is regular disclosure.

did you think that it's pbad those two guys cot cancelled >> >> kaplan and rosengren.celled themselves, but i do think the policy needed a relook and i think policy should be relooked there and relooked by, frankly, any elected official. >> can we rebuild? you know they're good guys and you nknow that they're done i know they made a mistake when i covered the federal reserve, he said you scant trade period i feel badly they have been on a lot, kaplan is a smart guy knew we think of them as an insider trader sorry. >> his views were counter to what his position on stocks would have been. he was talking about taking the bunch bowl away on a lot of these things the energy stocks, is that one area you might touch at this point? >> yeah, i still think you can buy them, because some of these aren't pumped in, they're too busy giving dividends to aramco. our big oil companies have gotten religion. there is an acceptance that this stock, these stocks are still under owned. you can buy pioneer, chevron i think you can literally buy almost anything in this group. it works it's t

robert kaplan and eric rosengren say they are selling all their stock holdings by the end of the monthd ethical concerns about their trading activity. the fed presidents released near identical statements after their financial disclosures showed investments in stocks and other financial instruments. u.k. wholesale electricity prices surged 2300 pounds as europe continues to face an energy crunch. the peak was more than 10 times the price seen the following morning. low winds are exacerbating a lack of natural gas supply across the continent with record prices in spain, germany, and france. global news, 24 hours a day, on air and at quicktake by bloomberg, powered by more than 2700 journalists and analysts in more than 120 countries. anna: coming up on this program, christine lagarde says the ecb is not tapering. ♪ >> the rebound phase and the recovery of the euro area economy is increasingly advanced. inflation increased to 3% in august. we expect inflation to rise further this quarter. but to decline next year. new stock protections force the underlying inflation at 2.2% in 2021. see

financial disclosure is so often -- rosengren four real investment multiple purchases and sales.he boston fed says the trades were consistent with the system 's strong ethics rules. lawyers for elizabeth holmes says she is not the villain prosecutors have made her out to be as her criminal trial begins in silicon valley. holmes faces 10 counts of wire fraud and two counts of conspiracy to commit fraud. citing claims of revolutionary blood testing technology at her failed startup. she and former executive run nashville ronnie were indicted. global news, 24 hours a day, on air and on bloomberg quicktake, powered by more than 2700 journalists and analysts in more than 120 countries. i am vonnie quinn figured -- quinn. >> reassessing valuations in light of economic risks with money managers from morgan stanley to citigroup turning cautious on u.s. equities. earlier guests say the recovery has not been railed yet. >> things are almost back to normal. >> real economic activity is getting weaker. >> companies are starting to push back the back to office. >> major corporations have pushe

robert kaplan and eric rosengren say they are selling all their stock holdings by the end of the monthd ethical concerns about their trading activity. the dallas and boston fed presidents released near identical statements thursday after their financial disclosures and showed investments in a variety of stocks and other financial instruments. both said they will invest the proceeds in diversified index funds for cash. the slowed the pace of its bond buying program slightly and what president christine lagarde insisted was recalibration that does not herald a wind down in melissa. the bank will conduct purchases at a moderately lower pace and roughly 80 billion euros a month , citing the economic rebound. officials left rates on hold and raised the ecb forecast for 2021 growth and inflation to 5% and 2.2% respectively. >> the lady is not tapering because what we are doing is recalibrating, which i will remind you is the pandemic emergency repurchase program. vonnie: oil backtracked as investors honed in on china's decision to reopen crude reserves. beijing says it released oil from its

>>> we mentioned, the ten-year yield did hit a three-month high >>> we should also mention that rosengren will retire september 30th he did mention in health issues in his letter. the interim will be the boston bank vp ken montgomery we're back in a minute [uplifting music playing] ♪ i had a dream that someday ♪ ♪ i would just fly, fly away ♪ new projects means new project managers. you need to hire. i need indeed. indeed you do. when you sponsor a job, you immediately get your shortlist of quality candidates, whose resumes on indeed match your job criteria. visit indeed.com/hire and get started today. we see smarter software delivering cleaner power. emerson's breakthrough technology enables the power industry to integrate renewable energy sources to modernize and improve the electric grid. emerson. consider it solved. >>> the dow gainers this morning will tell you all you need to know energy some industrials, definitely financials, and some travel names looking at the gains over the past five days, carnival up 14, delta up 8, live nation up 8. the reopening play appears to be in focus a

. >> randy, do you have any thoughts on the resignations of rosengren and kaplan and their trading?did nothing wrong, but obviously perception can erode confidence and i'm curious to get your thoughts. >> yeah. i think it's unfortunate that there is that -- that there could have been a perception as you said, they didn't violate any rules, weren't trading on insider information as far as we know and i don't see any evidence of that but just the optics were not what i think the fed would prefer it's one of the challenges of just the way the congress is set up the fed you have to remember the regional federal reserve banks are not part of the federal government they're.org not dot gov. i was a presidential employee so they're -- i think it's a challenge to get the standards right for everyone when you have dot org and dot gov together that will change going forward but that's one of the challenges of having this system that the congress has set up. >> speaking of all of that, whether it's the turmoil regarding the trading activity or the pressure from progressives, there were reports,

president mary daly becoming the first president to talk to reporters after those resignations of eric rosengrenert kaplan. she says that the fed wants to ensure that they are transparent in their processes and the fed is committed to getting this right. and she means the review process and the disclosure process at the fed. she says the federal reserve needs the trust of the american people to do our work. specifically addressing these issues, daly says in terms of the rules and whether they need to be changed, that is clearly the case she goes on to say we disclose our information on a regular basis, and people are saying this is not sufficient daly backed changes that may be coming for the review process initiated by fed chair powell. on policy she says she anticipates the federal reserve will meet the, quote substantial further progress test by the end of this year for tapering and that the fed -- does not envision the fed raising federal rates in 2022. i expect we'll hear more additional testimony from jay powell >>> still to come, our interview with the woman who rose to the top of one of