stan fischer said the fed can be too predictable.oo predictable if it does not respond to incoming data and response to the policy forecast when data is changing. yvonne: what about geopolitical tensions? is that going to have any factor in the fed delaying them? reporter: that is a very interesting question. we know the high anxiety is having a big impact on the stocks, bonds, and the dollar. there's so much geopolitical uncertainty. what is going to be the response to north korea? what is going to be the response from north korea? we had the french election coming up on april 23. it is a close horse race. if you look further, if we can't get a budget deal, there is a threat of a government shutdown. let's look at another chart. 7828, a financial market stress anxiety index. it is volatile, but we are back out to the highest for the year. remember in early 2016, the fed was on course for four interest rate increases. market volatility stop the fed. fed, theowed down the vote on june 23 in the middle of the summer. it is one more thi

it is worth noting that stan fischer's views are not just speaking for himself. ey are very influential to the fed and central bankers around the world. stan is well known as a former academic who taught a generation of central bankers, including a former fed chairman. he was for a while, the bank of israel's governor. his views are well followed around the world. betty: not just one person's view, but representative and influential. reconcile stanley fischer's view with what we saw in the latest beige book survey. steve: the beige book was muted, not as optimistic. thehows a snapshot of where economy is over a six week per iod. fomc will be meeting, before that they surveyed businesses around the country and ask them what they see. they saw moderate to modest growth, depending what district you were looking at. and they found of the labor markets were stronger. notas a mixed report, particularly strong. but it was consistent with an overall expansion, consistent with the fed continuing to at least consider raising rates in june. if you look at the hard data, we w

the key is, janet yellen and stan fischer may or may not be back next year is there an -- chair and vice of the fed. it is possible that you move towards a more rules-based system. you prly won't get it instituted as law because it is not popular in the senate as it is in the house. but it could be in practice, something they do. --id: a federal result reserve building in washington has his wife's name on it. what we know about the role of the federal reserve will play when it comes regulatory reform? pringle -- if he becomes the vice-chairman, it will probably be a later handed fed. , the fed hasnk installed legions of bank executives at all the large banks and oversight. randall quarrels said in our he doesn't believe that governments should be an actor and financial markets. it should instead be a referee. -- we knownt by that about the things he would like involve allowing banks to operate anymore unscented fashion for the fed to byrcise its oversight role regulating things like capital levels and liquidity and leverage the things that are also part of the dodd-frank regime, which we

stan fischer, always a pleasure. thank you. >> thank you. >> vice chairman of the federal reserve. we'll send it back to you guys at post nine. >> we've been listening carefully to that as the market as as well. interesting. covered a lot of ground. a lot of focus on why q1 data coming in soft. looks at one-time impact like wireless surface deflation saying we're not tied to three hikes this year just like we were not tied to four hikes last year. it became one. one was appropriate. >> so obviously leaving options open. definitely not trying to extrapolate first quarter softness to say it changes the feds overall posture on things. a slight bump in the 2-year yield. also acknowledging, of course, that any reduction of the fed's balance sheet would be equivalent to a tightening increase in supply of debt raising rates on the margin and could affect the economy. i also liked there was weaker u.s. dollar recently has helpful to the u.s. economy but not essential. in other words, the outlook that it do okay. strong words on bank regulation. >> bank regulation, dodd/frank and on stock p

quote stan fischer, he said there is something going on with the data we do not quite understand andnk that is true. it is a negative surprise, i am not worried. >> here is the good news. going into the second quarter, the headwinds of consumption and also inventory is supposed to reverse. you are supposed to have business investing, particularly in gas and oil, and you put it with a backdrop of decent global growth, you could get a second quarter gdp at 3.8% and that is what morgan stanley is forecasting. david: still ahead as we review the week on "bloomberg best" investment insight from howard marks, and exclusive conversations with two leading entrepreneurs in china. earnings from amazon and alphabet and europe's biggest banks. up next more of the top , headlines, wells fargo shareholders make themselves heard at a raucous annual meeting. >> standing up and saying, i am not going to sit down and i want -- would like to hear from these board members. david: this is bloomberg. ♪ ♪ david: this is "bloomberg best." i am david gura. let's continue our global tour of the top business s

we'll talk more about this issue with another bank regulator, stan fischer, that interview coming upimf on "squawk alley." this is one of the topics of the day. >> carry cohn yesterday saying the biggest thing that will help deregulation is changing personnel at the agencies, taking a shot at the fed. he says if a bank passes a stress test in europe it should be able to pass the stress test in the u.s. taking a shot at dan tarullo who rezi left recently. let's go back to wilfred in paris. >> hi, sara. i wanted to step away this time from those tragic developments in paris yesterday and just ask more broadly the question of how people are planning to vote in this election. yesterday i hit the streets of paris and asked people exactly that. how they plan to vote. >> i'm going to vote for melenchon. i think it's the best candidate in order to make france great again. >> macron is not from the left, neither from the right, just in between. i think it's what we need in france. >> fillon. he has experience. looks like a president. >> do you think donald trump and marine le pen, there's sim

this is at the end internet of all of these discussions, and i think stan fischer has to think about it as well talking about improvement in china and europe. year to date, central bankers, remember, our central bank is tightening. year to date, central bankers purchased $1 trillion of financial assets, annualized, that's $3.6 trillion. that's the biggest pace in terms of central banker purchases. now, no matter how you slice it, i believe the ax yum that all stimulus is fundable. why are markets where they are at? >> kevin, respond to that, because i take -- i take rick's point to a certain extent, but on the other hand, as point r pointed out, this market seems to be able -- it's a tough lawn market. if terrorism is not going to do it, and, yes, the u.s. bank has been tightening, but we've been waiting for the u.s. bank to start to do this for so long. >> yes, i mean, look at valuations, and, remember, he was talking about relative -- the market relative to gdp. well, we also took a look at gross domestic income, and if you think about -- if you stop and think about it, gross domes

he's not going to be able to get through stuff that people like janet yellen, richard -- story, stan fischer i think that's absolutely right, steve. but cumulatively over the next, you know, three, four years, quite a lot can be done as the composition of the board of governors changes. as you know well, steve, trump gets three fed appointments this year, quite possibly two next year. the shape of the fed board is going to change. and over time, the guy who's in the seat, if it is quarles, is going to have significant ability to steer the way, to shape the way, the fed implements the law of the land. >> and if you're not asleep by this discussion of banking regulations just yet, i should point out that it's even more complicated -- >> can i wake up? >> wake up now. a bunch of these things require four or five different agencies to agree with them. so it's not just getting the fed on board. now, the other thing you may want to -- here's the point. >> we're already so deep -- >> the question -- >> makes a big difference. >> let me make one point. >> too early in the morning for nap time. >> ho

. >> yeah, just after 1:00 this morning that rocket took off from kozic stan carrying american astronaut jack fischer. he's joined by a russian cosmonaut. their mission on the space station will last four and a half months. >>> time is now 5:18. more young adults are living with their parents. coming up, how census information reflects the high housing cost and the changing attitude towards getting married. >>> also no kevin durant but no problem for the warriors last night. we'll break everything down. a big win in game two for the warriors in the opening round of the nba playoffs. >>> welcome back to mornings on 2:00. it's 5:21. last night the warriors beat the portland trail blazers. >> beautiful steal on bonnlea. he'll get to the lob. and he's got another one. >> mcgee came off the bench. had 15 points. steph curry oh, yeah steph curry 19 points. even without kevin durant who's still being treated for that strained left calf. game three is saturday. >>> well the oakland a's beat the texas rangers yesterday afternoon 9-1. and the game was never in doubt. the a's jumped out to a 4-0 lead in the fir