tom: stan fisher says he has real concerns as mark carney does about a lack of inflation.service sector inflation they can give him cover to raise rates? >> i do not agree with this deflationary bogeyman even if my good friend stan fisher is the one bringing it up. nominal gdp growth has been strong and significantly positive. what you think the big spike in inflation is coming from. >> inflation is very noisy and if you look at the longer term expectations, 1.5 to 2% has been the constant and that is not changing. vonnie: so white raise rates? >> with respect to where we are from a per's a taylor rule or other perspective where behind the curve. that is not to say that you want to stop being accommodative but we are currently four percentage points accommodative it tom: thisis critical because sam fisher invented this phrase altra accommodative will be the ramifications to our listeners and viewers daily lives? i cannot figure out what changes? >> all rates will start to move up when the fed increases rates but if they do it slowly it will not have a big immediate effect.

david: what stan fisher said yesterday is vis-À-vis the dual mandate we are getting closer.concerned about inflation. you leaving the door open saying if china devalues and this brings on deflationary forces around the world, the u.s. is not going to be able to escape the implication and that is something we need to take into account. there's no question in my mind that the chinese move today is going to cut short the fed tightening, even if they were to hike the rates in september. we see that. want to go back to the point you're making about the impossible trinity. you are framing it in terms other than what most people are using this warning. most people are evaluating the chinese devaluation as a short-term effort to boost exports. ,ou are talking about it phrasing it is a structural capitulation. qe,d: when the u.s. did rates went down, the dollar collapsed, and the u.s. stock market went up. when the ecb did qe just now, interest rates collapse of the european stock market soared. i think china is going to be an exception. really sense, they are approaching the chinese

stan fisher put it well. >> i think stan fisher put it well, the strong dollar, what's happening in chinae other way over the next several months. i guess your point you didn't answer sprefl joe's question, which is where would your formula? i believe it's around 1% smr it's the 1% or a little better at this point. you know, the economy is not as good as we'd like. it's moving ahead. so you plug in the numbers. that's why i say, a 1.2 inflation, it might mean it should be one rather than a 2% interest rate, 1.5 rather than 2.5. it doesn't mean 0. that's the confusion people have when they come to these numbers. >> go ahead. >> it comes down to making a judgment calm. >> i know, right. >> despite the rule, you say you know what, all the things you talked about, the market moves, i got to look through those things, john, go ahead. >> if your doctor told you, it's art too as well, don't you wish there were some things would absolutely do it? because you might be subjectively in error or affected by something, you know, that affects only you. it's not good for the greater good. it's not just

stan fisher in an interview with tom: said we thought the lower bound was zero.ow we realize the lower bound is actually negative. so this looks like a major mistake. you should always err on the side of caution, and not raising rates and leaving them for longer. the danger would be you raise them to deal with the recession that you caused by raising rates. betty: that was dan yes, professor at dartmouth, college. coming up, the f.c.c.'s new pay zhrure rule may not paint an zphrore -- new bay betty: welcome back to the bloomberg market dalte. i am betty liu. time for a look at the markets. just about 20 minutes ahead of the closing bell. i am going to head over to julie. it is the dollar you are starting on. >> yes. i am looking at the week. let's take a look at the week that was in the dollar. the deadlines we have seen, down almost 1%, its worst week in about two months, spurred initially by the china did he the tion and then -- china devaluation. people assumeing that with that devaluation that would then potentially have an effect on the fed, maybe push back

all eyes on stan fisher, the fed's number 2 at jackson hole and what tone he would strike. if he does strike a dovish tone that could give a respite for assets out here in asia. >> thank you. cleveland fed president says the recent market turmoil has not changed her view on the u.s. economy and it's ability to support a rate hike. she tells the wall street journal there's probably more down side risk to her economic forecast due to volatility and uncertainty about china. now a wide range of policy makers from across the globe descended on the annual economics imposium. one thing is for sure, they won't be short of conversation. steve filed this report, a preview of what to expect. >> reporter: this grizzly bear stands at the entrance to the fed's deliberations in jackson hole. a threatening reminder that they may not be out of the woods when it comes to the dangers of raising interest rates. >> but one fed official is ready to stair down the bear. >> this week's events complicate the picture but it's too soon to say it fundamentally changes that picture. in my own view the

just yesterday the vice chairman of the federal reserve stan fisher said the federal reserve will not wait for a 2% interest rate. so what does it mean for your investments and the week ahead? we have the chief economic adviser for alliance and former c of pimco. muhammad, good to have you on the program. welcome. >> thank you, maria. >> so much to talk about after the huge route in stocks last week. ahead of the jobs numbers ahead this week and ahead of the important september meeting for the federal reserve. first, talk about the global markets that we just saw. what was behind all the volatility, muhammad? >> it was crazy, maria. the dow traveled a total of 10,000 points during the week. two things were behind it. one is the markets repricing the prospects for global growth because of evidence that china and other emerging economies are slowing down, and those countries have gone from being a locomotive for the global economy to actually detracting from global growth. then the second was a lack of confidence that the centralback in china could respond quickly enough and effectively

in the near form we have stan fisher this weekend talking about inflation. so we have september 17 fomc. whether or not they hike we think that will bring certainty, some amount of certainty to the markets. as to the direction of fed policymaking. then you have china. china was obviously a big weight "on the markets" these past comes months. in the pipeline if we see chinese growth decelerate further is a big fiscal stimulus. i think that is something that chinese authorities will bring to the table. as i said on bloomberg and previously, i think there is a floor for the chinese under both economic growth and equity. i think they are moving in the direction of a more market based economy. but in that adjustment process, and as growth decelerates, they will step in to prop up growth. olivia: the recent stock drop was fear driven not event driven. what will it take to soothe the markets, to stabilize global equities? kathryn: clarity. volatility is still here. we need certainty on some fronts. how hawkish or dubbish the fed. september 17 will be critical. if y

ourselves over the next couple of days, the big headliner is the vice chairman of the board of the fed, stan fishery closely aligned with janet yellen, and we'll wait to hear if he sounds like he agrees in any way with bill dudley's comments today. deirdre: okay and, of course to remind everybody, bill dudley saying it looks like a rate hike, and i'm extrapolating, is less likely in september. we will be listening indeed. peter, we're so glad you there are to cover it for us. peter barnes joining us on the phone from jackson hole, wyoming. big symposium, you heard peter talking about it in the next few days. you'll have the best economists in the country and investors talking about what happens next? we thank you so much for joining us here on "risk & reward." thanks for being with us. "making money" is next. it starts in just two minutes. . >> good evening, everybody, i'm liz mcdonald in for charles payne. thank you for joining us tonight. stocks roaring back today with the dow snapping a six-day losing streak. it posted third biggest gain in history, climbing up 619 points at the close. the nasda

one of the reasons is because stan fisher, the vice chairman of the federal reserve board he was one of the speakers. he was careful to be balanced. his line from prepared remarks got everyone's attention and fast. quote, because monetary policy influences real activity with a substantial lag, we should not wait until inflation is back to 2% to begin tightening. that is important because as you know the fed has a 2% inflation target. headline inflation is basically been zero year over year due to falling prices and imports by higher dollar. fed officials called them temporary factors. all you have to do is look at trading in oil prices last few days to see how they could be right. just today prices were up 9% or so, $49 a barrel for west texas crude. so-called core inflation rate stripping out energy and food prices which can be volatile is running one-to-one 1/2% depending on measure you look at, closing in on the 2% target. fed officials look at the numbers for trends, deirdre, as they consider whether or not to raise interest rates. deidre: one thing is clear, peter barnes, volati

i would look at what stan fisher has, very good, the vice chairman, spells his name wrong, but a great they say fisher from the fed. >> he's the one that counts. and dennis lockhart and then john williams and jay powell. it's very important for a governor to speak out as he spoke out several months ago. clearly they want to move in the direction of beginning to lift off. it doesn't mean they have sequenceal quarter point movements. i think it's an awkward spot now. >> fisher's last comments, i thought, wow, they are going to raise in september. but that was hours before the chinese government. >> becky, don't count on a single event. and keep this in perspective. the two biggest trading partners we have, canada and mexico, their currencies are off between 18 and 20% against the dollar. this is a 4% move. >> i agree. >> i think this is much ado about nothing. >> i think we're there, but i do worry that the counter argument i've heard, the one that makes sense to me. is that, look, you don't want to raise rates ask then have the global economy tank and feel like you have to go back to ze

the next clue about the fed comes from stan fisher. >> he said we're raising rates.ood thing that yellen isn't there this week? >> we haven't seen much of yellen lately. if the fed is doing anything, she needs to be making a case for it, one of the arguments why-- >> oh, interesting element there that you bring up. wall street braces for a brutal opening with futures sinking down 650 points right here on the fox business network. more coverage. these two oil rigs look the same. can you tell what makes them so different? did you hear that sound? of course you didn't. you're not using ge software like the rig on the right. it's listening and learning how to prevent equipment failures, predict maintenance needs, and avoid problems before they happen. you don't even need a cerebral cortex to understand which is better. now, two things that are exactly the same have never been more different. ge software. get connected. get insights. get optimized. thankshow may i help you?s list. i heard i could call angie's list if i needed work done around my house at a fair price. you

: we will know this afternoon when you interviews stan fisher.laughter] erik nielsen: my view is the u.s. numbers are across the board. if you look at some of the 10, 12 indicators for labor market, all of the things dancing around, the balance. it is screaming for rate hikes. number one, will it go september? he will not tell you. the question, is it a risk behind the curve? t would have to move faster. hey remember, in economy that does not matter if they go in july or december whatever. is at the speed thereafter. manus: you will stay with us. erik nielsen chief globe economist at unicredit. he stays with us. what else is on our radar. francine: let's start with turkey. turkish forces have exchanged fire with militants at istanbul. seven people including five policemen were wounded. that is according to the state-run agency. turk television said two men opened fire. greek government is aiming to conclude talks on a third bailout program by tomorrow. tot will lead enough time have the deal families -- have the deal and release for an august pay

stan fisher saying it's temporary. warren buffett's berkshire hathaway acquiring precision. >> we knew this. nfl deal kind of interesting. >> yes. ahead of earning, reports for tomorrow. al boib. first up berkshire hathaway saying it has agreed to acquire precision cast parts. they say the deal has an enterprise value of 37.02. they say it takes berkshire out of the market when it comes to m&a. >> we'll probably be buying a few small things in the next six months. i mean, we're in negotiations on a couple but in terms of a deal of similar size, it pretty much takes us out. what we'll probably do on this one is we'll probably borrow about 10 billion and use about 23 billion of our cash. >> asked about a lot of different things. ibm, hinted he's been buying more. said kraft unlikely to do a big deal in the next couple of years. >> i thought there was a lot here. i know the three reasons the market is up. china should have been down a lot. the stock market has disassociated it from the data which is terrible this weekend.

guy: dan fisher. -- stan fischer. he was brought in. a great interview.he rate of inflation. [indiscernible] how about implications for the fx market yesterday? all the better off now. moves and the dollar because of china. guy: the stories you need to know about. by theevaluing the yuan most in 2 decades. triggering the currency's biggest one-day loss system identity four. caroline: google is reorganizing under a new company called alphabet. it gives maynard webb operations more independence while offering investors more visibility. check --hnson -- shares jumped. guy: a finance minister from greece said very small details remain. caroline: the devil in the details. welcome. elliott, what do we know? elliott: they have reached a deal. and the finance minister it need to be sorted out. $86 billion and they reached agreement on the surplus. -.25%. a deficit for this year. rising. great parliament, due to vote on this today. as part of this deal, 35 previous measures. more degrees had agreed to but had not implemented which still needs to be implemented bef

speak a week after i interviewed him saying september that is what he is looking at fed officials stan fisherle bit waiving a little bit on that, i think there is a real chance, that it happens in september, but the fed has a upon on the one hand, the job market is looking healthy i should not say very healthy, but healthy. >> improving continuing to improve the unemployment rate is coming down, so they like what they are seeing on jobs front i mean inflation front, they missed their target 2% target object the under side, for more than three years, and they are about about uncomfortable with that they want to be comfortable before raising rates china slowing hard to see much inflation in an environment where all you those factors are at play, so that is why i think one point where mr. buffett was wrong there, they am i do a first step but they intend to move very, very slowly. and what the market is saying right now, is that they are going to move more solely than their forecasting said. >> market -- keep changing what do you think is priced in for this market when we get data like we got la

obviously, bill dudley, stan fisher, very close dialogue with janet.with at the san francisco fed. perhaps from the dovish camp and people paying some attention to, i think. she will be -- she is not out on the dovish extreme of this committee at the moment. she is more in the center. >> you know, you heard the word transitory used and a fed president's favorite words to suggest it's temporary. when's the shelf life on transito transitory? because we haven't seen inflation back to the target. so forget the markets for a moment. they have an excuse in the fact that core inflation is 1.3%. way below their 2% target. >> so i think that's really absolutely on the nail. right? because if we were seeing wages accelerating, if we were seeing core pce accelerating or say core services inflation which is pretty insulated from oil or the dollar, accelerating, then there could be quite a strong case for these effects but it's awol. there's no sign of the domestic inflationary pressures arriving on schedule. will they arrive some day if unemployment continues to d

stan fisher saying it's

stan fisher is giving a speech on inflation. >> what does janet yellen do while everyone else is there? >> i imagine she'll figure out -- not everyone is going but yeah. >> we do have every angle of this story. todd gordon of trading analysis.com hitting the equity markets for us this morning. >> we're going to talk broader markets in a moment and tell us about what happened because it seems like this came almost out of nowhere. it's been building after china devalued the yuan. is it over now? >> what has happened really? has any real damage been done? i'm not sure. there's a lot of talk about whether the trend has been broken and i really don't think there's been any technical significant damage done. there's a lot of talks about the 200 day moving average. have we broken that? have we not? if you look at the dynamic in the technical picture of the market, the stock market has done nothing but flatten out which allowed the longer term moving averages to play catch up. >> although if you look at what's happening in the emerging markets and china it's hard to imagine if you add up all o

stan fischer. we will get a reaction from the former president of the dallas fed, richard fisher, in just a moment.>> stan fischer obviously moving the markets. traders will break down what they think of what he said as this wild week comes to an end and they will also give you their game plan for next week. plus, stop worrying. we will tell you three reasons why you should embrace higher interest rates. and the halftime portfolio challenge heats up. the top two traders both making moves today as the battle for the top spot continues. that and more ahead on "the halftime report." >> the markets after federal reserve vice chairman stanley fischer giving his thoughts on a potential rate hike. >> i think it's early to tell. the change of the circumstances which began with the chinese devaluation is relatively new and we're still watching how it unfolds so i wouldn't want to go ahead and decide right now what the change -- what the case is more compelling, less compelling, et cetera. >> joining us now to discuss more is richard fisher, former president and ceo of the federal reserve bank of dallas. fis