for "nightly bus report", i'm steve liesman. >> i am joined by mark zandi, the chief economist at mody'snalystics. ways good to see you, mark. >> thank you, bill. >> if there is a question about the jobs report lately it has been about wage growth. with full employment, and such ght labor market why aren't wages going up anymore, but you have a slightly different take on that, don't y? >> do. wage growth has pickedp d if you go back two years and now steadilyto 3 and accelerating and the good news is that wage growth for new entrance, fol coming into the workforce is rapidly accelerating and i think that's a leading indicator for wage growth more broadly because businesses, they haveay to their new workers more, they'll have to pay l their workers more, so i think it's coming. just hold tight, bill. it's coming. >> it seems to feast or famine for a long time. we were talking about a lack of wage growth and now we're getting wage growth and people i are t about it being inflationary, but it doesn'tse to be at that point yet, is it? >> no, it's not. >> wage growth 2.5 to 3 is consistent wi

comments of his own regarding cryptocurrency, taking questions from house financial services, steve liesmans monitoring the testimony and q&a today. hey, steve. >> how about a ball over here? jay powell ripped into cryptocurrencies saying he's concerned about the use of money laundering and terror financing, and adding, quote, they are not a currency they are not really a currency because they don't have intrinsic value. he hadded they are investor and consumer protection issues and not a lot of news when it comes to monetary policy in regards to this hearing. neither par to appears to have tremendous concerns about the fed's raising the interest rate. nothing powell has said so far has altered the outlook for two more hikes this year, but there are questions on what happens next year. one factor that could influence that is trade. and warn congress about the negative fallout >> we hear from our extensive network of business contacts a rising chorus of concern you pointed out, lots and lots of individual companies have been harmed by this. we don't see it in the aggregate numbers yet becaus

for nightly busess report, i'm steve liesman. >> and steve just mentioned today's government report on he was referring to the producer price index. the iex which measures the prices businesses receive for goods and services rose .3% in june from a month earlier, but it was the annual rate thatot all of the attention. it climbed 3.4%, a level not seen in six years. the reason w partlyue to a rise in transportation cost. >>> rising fuel costs a becoming an issue for airlines. today american airlines which is the world's largest carrier trimmed its outlook for second garter revenuewth. the ceo in the past has warned of the need for higher fares because of rising costs, and that stock tumbled 8% today and r airlines followed suit. in fact, thepo tras were one of the biggest decliners in today's trade. >> obviously, a nber of factors are driving up costs for u.s. companies. higher energy prices and tf threat tariffs and rising inflation could be seen as headwind, so howni will com contend with these pressures? joining us to talk about that is jason ware at albeon financialo good to have yo

for "nightly business report," i'm steve liesman. >> coming up, kids and money, why it's nevar too toaving for retirement. >>> here's a look at what to watch for tomorrow. the oil exgiants, annmobil and chevron are out with their earnings and we'll also hear from the blue chip company merck. 21st century fox and disney hped aal shareholders meeting to vote on the merger between disney and the fox assets, a as we just mentioned, we'll get the first readn second quarter onomic growth. that's what's to watch for on friday. >> that's good.we hould do that more often. >> some kids are getting a head start on saving for retirement by contributing to an account designed just f them. fidelity says the growth of its roth ira program is up ang whoppi 475% since the product was announced in 2016. laura cassidy is the vice president of retirement of fiddlity and joins us to talk about that. thank you for joining us tonight. >> thank you for having me. >> i am 21 and i am opening it for a person und the age of 18 and they have to provide their own earned incwhe. a roth ira? i'm curious. >> well, o

steve liesman back at headquarters >>> when we return, we dig deeper into twitter results.t discussed them a bit. intel beat the street, but some numbers within the report had shares down sharply this morning. interim ceo bob swan joins us. more to come on "squawk alley. [music playing] (vo) progress is in the pursuit. audi will cover your first month's lease payment on select models during summer of audi sales event. at fidelity, our online u.s. equity trades are just $4.95. so no matter what you trade, or where you trade, you'll only pay $4.95. fidelity. open an account today. you'll only pay $4.95. are you ready to take your then you need xfinity xfi.? a more powerful way to stay connected. it gives you super fast speeds for all your devices, provides the most wifi coverage for your home, and lets you control your network with the xfi app. it's the ultimate wifi experience. xfinity xfi, simple, easy, awesome. >>> twitter down over 18% after reported decline in monthly active users or planned decline perhaps. the conference call was this morning. jul julia boorstin has a

protests continue, some breaking news from the fed ahead of chairman powell's testimony next week steve liesman in washington. steve? >> the federal reserve will say to congress further rate hikes are consistent with sustained economic expansion and even with the rate hikes, the monetary policy remains accommodating on the economy, says activity is increasing at solid pace labor market continuing to strengthen, inflation running a little above 2% target seeing much lower effect from oil prices, saying the negative effect on consumers is offset by production and investment. wage growth sees it as moderate, likely held down by weak productivity in the overall economy. business investment remained robust foreign growth solid and consumer spending helped by tax cuts overall, seeing a shift in fiscal policy will provide moderate boost to gdp this year and help the next couple years one concern is shifts in trade policy which the fed is concerned could weigh on economic expansion, provide down side risk to growth. on markets, federal reserve says valuation pressures in various markets remain they're

. >> steve liesman watched it all unfold from washington, d.c. today. steve, it was a stay the course fed chair today. >> you know, i think so. maybe a bit towards the dovish side on a few things we have not heard him talk about his tolerance for higher wages he did say two things. one is that he thought higher wages were not causing inflation right now. we certainly think it would be fine for them to move up and quote on that. chair yellen had an idea that wages could rise equal to inflation plus productivity. that would be noninflationary wage gains i'm sure chairman powell pretty much has the same idea that means there's a lot of scope for wages to move without the federal reserve really accelerating its rate hikes. he said look we'll raise rates gradually. that's all good. the economy is solid so with all of that, there's no sense at all of any panic or acceleration in his talk >> i wonder what your perspective is as we watch the ten-year note yield turn lower it's a tick or two lower i mentioned how steph came into today expecting possibly a more ha

. >> all right for more on this let's bring in cnbc senior economics reporter steve liesman. steve, what do you think any influence at the fed. >> i don't think so. i wish i had a videotape that i can roll back and play what ryan kelly just said, and i think he may have hit the nail on the head here which is this idea that the trade war has now morphed into something of a fed war here and i think, melissa, i hadn't considered that, other than i do know that the thing the president mentioned here is that the chinese yuan is weakening apparently in response to these tariffs that are out there you have step number one that has the retaliatory tariffs and the yuan weakening and you have the dollar strengthening and now the president has to come back and has to kind of -- i don't know what the right word is, bully or otherwise cajole the federal reserve to say, you know what we need you to stop raising these rates so far because we're getting killed on the yuan so this, i think, what we have here is potentially, and i'm just speculating right now is another fallout from the trade w

jim, jon, our senior report e, steve liesman with us as well today. we begin with markets. stocks are reacting to the gdp numbers on pace for the fourth straight week of gains josh, kind of a muted reaction to what is undoubtedly a really good number. why? >> it's a, so probably a couple of reasons the biggest reason is that it was expected i think expectation for 4.2. the average revisions to a gdp number as i'm sure steve will tell you, i think they revised it seven times before they're finished with it it's anywhere from a quarter to a half of a percent. this number is preliminary and it was so weak or strong it would change anyone's mind or positioning. i don't think there's anyone that would say 4.1, this changes how i feel about rates, the dollar, economic growth, employment, et cetera. i think it's okay. >> doc, if i told you, the president says it's sustainable, maybe not at 4.1% or whatever. but if i told you that growth was going to be sustain bable at 3%, we'd be happy with that. >> as steve would tell you, that's pretty much home run. this is a one off. see if w

technology pairing earlier losses, including netflix coming back a bit dollar is stronger steve liesman has a recap of some headlines so far. steve? >> the first headline, fed rates, solid outlook for the economy. one interesting thing in q and a, said we think it will be fine for wages to move up more. i thought that was interesting we don't know how high a rate he would tolerate, but we know the former chairman was between 3 and 4% would have been fine. they're around 2.7, 2.8. he said it was early for the tax bill to help wages now, but said it is probably helping the economy. then got into the politics the eu is not a foe of the u.s. when asked that question, and said countries open to trade do better than countries that are closed >> good recap. thank you. dow up 14. trying for a fourth straight day of gains back to chairman powell. >> in your testimony you said good economic performance in other countries has supported exports in manufacturing what other country would that include, the eu, canada, mexico? other countries with good economic performance, would that include china? >>

steve liesman back at hq let's discuss this further gordon, i'll start with you. quite divergent performance in the markets this week. do you find it the likes of s&p are up as a whole or worried the nasdaq is down >> wn of tone of the things we'n are -- i guess we're impressed with everything that's happening here today the trend, the risk is still to the upside and as far as we see it on the floor, you've just got to be mindful of quick announcements, quick turn around and individual equities >> individual equities like facebook down 17% for the week, twitter down for the week. >> what we're really seeing this earning season is a big change in leadership. the biggest change in leadership we're seeing so far is those companies that have earnings versus those that have a lot of fluff and expectations the only exception to that is amazon which continues to get a pass in terms of delivering profitability. >> do you double down on alphabet >> so i'm a value guy, which finds me in an unusual situation in recommending google's parent alphabet i do think alphabet is wor

steve liesman >> 4.1% for the second quarter, the best number in four years, barely an hour after it was released preside trump took a victory lap on the south lawn. >> these numbers are very, very sustainable. this isn't a on.time sh i happen to think we're going to do extraordinarilyell in our next report next quarter. i think it's going to be outstanding. >> some observers concur these strong numbers can keep growing. gdp shows strong growth in consum spending and business investment along with government especially byn defense outlays. there's also a bump from trade that som economists come from foreign buyers purchasing products before tariffs drove up their price. >> what i was looking for, how that of this number w going to be so yybeans of the trade stuf how much sugary stuff we saw that in trade numbers. >> fewer economists think the economy caneep doi laps at 4% rate. for "nightly business report" i'mteveliesman. >> let's turn to joe for more on the economy, chief enomist with rsm. good to see you, joe. welcome back. >> good to see you. >> i guess this is the question, is t

comments before the senate banking committee as part of his misenual report to congress and our steve liesman was there. >> fed chairman jerome powell lling congress that the best way to keep the u.s. economy growing is to continue raising interest rates. in his semiannual testimony before the senate powell gave a solid outlook for the u.s. economy saying the job market is strong,unemployment will fall further in the months ahead and inflati flation has more or less hit the fed's 2% target. >> i think gradually raisings ratese way for us to extend this expansion. nothing hur working families than people at the margin of the abor markets more than a recession. >> powell said wages were not rising fast enough yet to cause an inflation concern. that wassi something of a dovis omment and they had without sparking inflation and it was too soon to be helping wages right now and the ultimate effects of all of the fiscal policy and the tax cuts and additional spending wild be to gauge. overall, the tuts have had a positive impact on the economy. though powell tried toteer clear of direct comments on

. >>> ecb holds rates steady steve liesman is monitoring that from hq. morning, steve. >> good morning, carl. the euro taking a hit after the press conference i think the problem is that there wasn't much news joggy continued with the outlook for plotting change. he said no rate change until summer of 2019 end of qe on track through december growth was solid and broad based. called the u.s., eu talks a good sign 116 right now. just very quickly, the differential in interest rates is what people are focused on. you look at the u.s. and say, for example, german two year, that differential now is 328 basis points and showing no sign of change, guys. if you're not going to change the interest rate, then the u.s. looks like a much better bet for investors, carl. >> steve, we'll watch that ecb getting buried by earnings and trade today but an important story. >>> qualcomm terminating the bid for nxp. steve mollenkopf blamed global trade tensions during an exclusive interview last hour. >> i think we got caught up in a trade war and larger issues above the paid

scott, i go to you first, who's more important to you today, steve liesman's report or eunice's reportre you more focused on this morning >> i'm more focused on the jobs. trade war is probably a lower priority than the rhetoric and the things that happen today for me the thing that's going to drive the market over the next 12 months, is going to be things like employment, global growth, what's the fed going to do will we see a lot of wage pressure so for me, i pay a lot offen attention to what's going on in the trade report. >> if that's what we should be focused on, why such a market reaction to what was a good report >> i think both things are actually important in the short run, i agree i think we should have a more positive market reaction because what this is really showing is that american business is capable of luring people back into the labor market but i do think this trade war issue is a problem because we're making -- it seems like we're making the assumption that at some stage the other side will blink, and what if they don't? tariffs are a terrible thing both for us and f

steve liesman is here now. he will join us with the rapid update on the economy. >> from the retail sales and business inventories first quarter coming in on track. the second -- first month coming on the prior month revised upward you know michelle, to get a median, you have to be solid in that it's not even an average it's a median. 4.3. i think it's the highest we've seen with a range of 3.7 to 5.2. the q3 forecast, which is interesting to me remaining strong it's at 3.1% the idea is not that we pop this quarter and give it back the in exquarter. still looking to the current quarter. here are some of the estimates out there. second quarter barclay's, 5-2 you know, they're not a chop shop out there they have serious folks. steven stanley, says 4.9 he will be upset because he was the high on the street to barclay's. got quite the wind under their sales, and their forecast, atlanta fed 4.5. hfe, that's the bottom 3.7. what's happening jim o'sullivan, what's happening? the tax cuts seem to be having the affect o

steve liesman is here with what you need to watch over theex nt 24 hours ♪ that's confident.nfident. kayak searches hundreds of travel and airline sites to find the best flight for me. so i'm more than confident. how's your family? kayak. search one and done. >>> this is a market day where there are two different stories. number one is facebook that stock is down 16% last night. nasdaq futures indicating a drop of more than 109 facebook is a massive company. it's in a lot of etfs. it's the "f" in f.a.n.g. look at the dow, they've been gaining steam. you know why president trump and jean-claude juncker yesterday talking about trade deals, tariff-free zone. so the multinational corporations, the biggest of the dig in t big in the dow, they look like they will do well. what will win out? the facebook effect or the juncker effect >>> in the treasury market, we are seeing the effect of people selling bonds. the ten-year creeping, inching, clawing back to 3% >>> speaking of the fed and the ecb and rates, we're on big data watch today and tomorrow the ecb set to make an interest rat

. >> let's get analysis from cnbc senior economics reporter steve liesman. i guess i have to hold my hands up and say siding with you on this >> i had understand that attitude and there are many with you that if it was just one time it would be okay i was sort of the opinion that was a slippery slope actually when i used that phrase this morning at 8:35, the president tweeted out -- i don't know if we have that tweet but he went from being a generic critic of the federal reserve to urging them to a certain policy. and now we hear from a senior advisor there's more specificity to that criticism. specifically the two rate hikes the federal reserve plans to do this year. we're kind of on that slippery slope. the white house put out a statement yesterday affirming the president's support for an independent federal reserve except for the fact that commentary on the fed from the white house is specifically against that concept of independence independence means you don't really comment and try to sway them either way. look, we may be able to exist -- i look at the

. >> steve liesman has more on what to expect >>> it's the one economic number everyone is talking about, second quarter growth which could be as strong as 4%, 5% >> most people understand what president trump is doing, what we're doing is good for the economy. i think as you know, we're looking forward to a very strong gdp number we have real economic growth. >> reporter: earlier this week the president tweeted out we have the best financial numbers on the planet. the median of 12 economists surveyed by cnbc see gross domestic product coming in at 4.1%, the strongest quarterly number since 2014. for the administration the number is nothing less than proof that its tax cuts and deregulatory economic projects are working. but there could also be temporary factors in the numbers, including a surge in government spending. >> the quarterly numbers are volatile and we juiced the economy with fiscal policy and the underlying trend has been moderate and built in some fiscal oomph on top of that and you've got some real momentum here. >> there could be some additional trade and inventory buildin

powell also said that for now the fed remains committed to its gradual path of rate hikes steve liesman> jay powell telling congress that the best way to keep the u.s. economy growing is to continue raising interest rates. in his semi-annual testimony before the senate, powell said the job market is strong, unemployment will fall further in the months ahead, and inflation has more or less hit the 2% target. >> i think gradually raising rates is the way for us to extend this expansion. nothing hurts working families and people at the margin of the labor markets more than a recession. >> powell said wages were not rising fast enough yet to cause an inflation concern that was something of a dovish comment. he added there is room for wages to grow without sparking inflation. powell said it was too soon for the tax cuts from last year to be helping wages now the ultimate affects of the fiscal policy will be hard to gauge. overall he said the tax cuts have had a positive impact on the economy. powell tried to steer clear of direct comments on the trade controversy because he likes to stay awa

reaction and analysis from those comments jerry joins us and former fed vice president, and also steve liesman. steve, let's start with you. i heard your commentary on this on "power lunch. i think i disagree, that line, i'm letting them do what they feel is best kind of takes the sting out of it somewhat >> i have the opposite feel of that which is the president saying he's letting them implies he has the option of not letting them there are reasons why no president up until this time has made explicit comments like this about the federal reserve. and the problem you get into wilf, i think think of a couple. the first is let's say the fed were to pause the first time around wouldn't it appear that the feds were giving in to pressure and the second thing is what happens the next time around it if you get into a situation where they're tightening or going the other way. it could become a political issue in congress. i think there were reasons why things have happened the way they did in the past there's conservative reasons why central banks are independent all over the world, and it's served m

protests continue, some breaking news from the fed ahead of chairman powell's testimony next week steve liesmanon. steve? >> the federal reserve will say to congress further rate hikes are consistent with sustained economic expansion and even with the rate hikes, the monetary policy remains accommodating on the economy, says activity is increasing at solid pace labor market continuing to strengthen, inflation running a little above 2% target seeing much lower effect from oil

let's get to steve liesman he's got details on another strong jobs report >> you heard all that talk about trade wars at the top of the show the trade wars has taken a back seat to the jobs report. payrolls up 213,000, against a forecast of 195. so better than expected. and add back another 40,000 jobs from april to may. and average hourly wamgs were moderate at 0.2% a year. 2010 every time the unemployment has ticked up, it's come back down when people enter the work force initially without a job and they find one before too long put it all together and jp morgan says, coat, overall the report is good news insofar as it suggests the economy still has room to grow will it continue some economists think the negative from tariffs could show up in the jobs report in the months ahead diane writing quote, quiet before trade storm before employment in june so at current levels the tariffs may never show up directly in the jobs report. but a further escalation and retaliation, it's going to be harder to hide it no matter how strong the job market or the u.s. economy, guys >> steve, interest

economy on friday we'll get our first look at second quarter gdp many are predicting a big number steve liesman joins us with more on what to watch and where the strength is coming from. steve. >> yeah, melissa, you may want to put your seat belt on for this one we're looking for a big number it's over my left shoulder here. take a look. we've been running, you know, twos and threes in here. two over here. we're looking for a 4.2% that's the cnbc rapid update medium average here, and it's one of the stronger ones we've had. do you have volatility here? well, even it out for you. this is the four quarter average. this number here 3.1 over time we've shown it's subject to the least revision. bottom line, it's running quite a bit stronger than it has been running. a 3% average 2% average must have been who is where on the estimates here. >> are we at a new trend let's dive into the numbers. what we're using here is actual economics numbers. they do a very good job of telling us how they got to their forecast. >> some of the trade number could reflect the strong economy, but also, some of the buyin

steve liesman is here to go behind the headlines steve, educate us. >> courtney, this number requires a deep dive here. let's talk about the top line numbers first. gdp 4.1%, exactly in line are the cnbc rapid update. and the second quarter -- first quarter revised up by 0.2 to 2.2% from 2% now let's look at all the components of gdp. the first is exports surging, that's part of the better u.s. economy. also maybe some people exporting stuff to get in front of higher tariff prices. business investment also doing quite well 7.3% the consumer doing very well that 4% number is very good for the consumer maybe that was the tax cut money, the additional money they got from tax cuts. we'll see if they can continue at that pace government spending also doing quite well, driven substantially by defense spending. and housing is down 1.1%, the real laggard in the economy. turn this on its head and we'll look at the contributions to gdp. you add up those numbers across the top and that's how you get to 4.1 the consumer added 2.7 percentage points. trade also doing quite well. government doing it

about the next round of tariffs threatened by the trump administration senior economics reporter steve liesmane with the impact on the economy and how it's expected to grow steve? >> the latest threat of tariffs from the trump administration are sounding a new and much louder alarm bell among many economists they worry that $200 billion of new tariffs against china, which could include retaliation from china, could have a meaningful negative impact on prices and u.s. economic growth morgan stanley saying, quote, we are now testing the idea that trade disputes are a contained economic event tariffs are creating earnings noise and eroding fis sal stcal stimulus we got to look this morning at the consumer price index about the price impact from tariffs. the wholesale numbers are up 23% compared to a year ago following tariffs imposed last year. spread that across the economy in the chinese imports the government reporting washing machines and metal prices higher and with the national retail federation, which is a strong opponent of the tariffs, the trump tax. the tariffs are a negative for econom

. >> steve liesman joins us now to give his reaction. the independence of a central bank bank, this will be controversial, what he said. isn't it >> because the president said it, criticized the federal reserve, he has now made it political. the idea of our central bank, most of the major central banks around the world is that they be independent. all of a sudden now fed policy, the issue of raising rates, lowering rates, it's always been political but never spoken about by a president my nerm isn't perfect, my research is not necessarily perfect. the closest thing i can find to this is back to 199 2 or '91 when george h.w. bush said i appointed greenspan and he disappointed me. >> that's after the fact. >> after the fact. >> not in the course of what the fed is doing. >> i'm doing my best, melissa. i do not believe in our modern history there is an analog of a president talking so openly and, i guess, honestly would be another thing. and critically of fed reserve policy chairman powell gave an interview and he said that the federal rese

. >> also, with us, kayla, is steve liesman and rick santelli.question of how sustainable, larry kudlow said it's a boom that will be sustainable as far as the eye can see. >> so, i think there's two pieces to unpack in that i think there are some pieces of this quarter here that are oneoff items, but i think there's a possibility of some gathering momentum from the tax cuts i think, if anything, the tax cuts unleashed an animal spirit sort of thing that may have brought some business investment forward. the kind of economic affects of the tax cuts are one that will accrue over time, as you get more business investment, hopefully, more productivity a lot of stuff talked about in there, as you suggested, is the result of oneoff stuff the 9% surge in exports. probably soybean related also, the big increase in business investment in the oil fields is followed up both the deregulation by the trump administration, but also the rise in the price of oil that's one thing that economists want to unpack when they look at it so i think there's truth in the

steve liesman is live in d.c. with all the highlights. hi, steve. >> hey, michelle -- best strategy for the fed to continue raising interest rates. he said wages were not rising fast enough yet to cause an inflation concern. >> i think gradually raising rates is the way for us to extend this expansion. nothing hurts working families and people at the margin of the labor markets more than a recession. >> powell said it was too soon for those tax cuts from last year to be raising wages right now, and the ultimate effects would be hard to gauge overall, though, he said the tax cuts have had a positive impact on the economy more worrisome, he said, are the administration's trade policies. >> i'm really firmly committed to staying in our lane and, you know, our lane is the economy. trade is really the business of congress and congress has delegated some of that to the executive branch, but nonetheless, it has significant effects on the economy, and i think when there are long run effects, we should talk about it and talk in principle. i would s

on the economy were the same but the questions from the house of representatives were different steve liesmanns us from cnbc headquarters with the latest >> fed chairman jerome powell very much sticking to the script of yesterday in his testimony and q & a before the house that the economy is strong and the fed is on track to gradually raise interest rates highlights of today's hearing were strong efforts by house republicans to have the fed chairman agree that tax cuts were behind the recent economic strength, insisting he did not want to wade into politics, powell said fiscal policy was one factor give a listen. >> it's fair to say that the unemployment rates are very low and that a lot of things go into that. >> so you wouldn't say today that it has anything to do with regulation or tax? >> you know, it's -- i'm reluctant to get into the credit assignment game. it's really not up to us i can report on the economy. >> weaving, bobbing and dancing there. later democratic congressman asked him to attribute growth to president obama. powell was more definitive when it came to his concern about

steve liesman joins us now to break down all those numbers >> bill, thank you to look at the numbers,de war is taking a back seat to the jobs report as the strong u.s. economy does the driving. nonfarm payroll is up 213. what he didn't tell you the estimate was 195, so that was better than expectations also we added 40,000 jobs in the past with revisions to the april and may numbers. average hourly wages was modest, 2.3%, but the unemployment rate ticked up. let's look back at previous rising unemployment rate since 2010 every time we've had a rise, it's ticked up and come back down there's an unmistakable downward trend with a bit of flattening just of late people say they're available to work in a single month but don't have a job so they're counted as unemployed over the next few months they have been finding those jobs out there. j.p. morgan says overall the report is good news insofar as as it suggests the economy still has some capacity to grow at an above-trend pace without generating much inflationary pressure indeed. that's what the market cheered today. will that continue to

let's get to steve liesman. >> not making any change.rate where it was and continuing at its new schedule of quantitative easing on track to end it. i thought this might be an interesting time to take a look, there's some concern out there that maybe we're into this period of convergence of tightening. not so fast. 1 and 3/4 to 2%. it's reducing it's easing pull. the ecb is at zero and it will ease more slowly and wind it down ending it in 2018. the bank of japan, a lot of talk about why they may be doing, they're at minus 0.1 and they are still easing and there's talk about a tweak to that policy that has the boj -- the jgb on the move this morning up a few basis points. take a look at the two year german yields versus the u.s. you can see that difference is increased over time, so at least the bond market is not making a bet at the moment on convergence and that's also true at the ten year horizon when you go out further. here's just the spread between the u.s. and the german ten year. as negative now as it was -- that's the short-term

. >> thank you >>> joining us now is the vice chairman at evercore isi, and steve liesman. we had conversations earlier i know that the markets moved. we had -- the reaction about anything that the president says is pretty unconventional i always had known he liked lower interest rates george bush blamed his loss to bill clinton on greenspan saying he wished he had not raised rates. we know presidents -- this is one of the first ones who says what he feels like as an individual, not just as a president. you already heard him say i will let them do what they think is best there was kind of an overreaction you think that a president has to -- like the treasury secretary has to say i value a strong dollar, the president has to say the fed is independent. >> you're right. let's not get completely carried away over what happened yesterday and -- >> too late. steve's here >> but i think it is something that is serious. it is a troubling development. you know, whether the president was being careless or whether the president was deliberately trying to put pressure on the fed, it c

steve liesman back to you. >> it's a little light but not on the year over year, but all items up 0.1ted today, rick. it's low energy. he told me he's exhausting because he's tired of winning. we talked about that earlier. totally exhausted from winning. nato. all the stuff keeps happening and it's taken a lot out of him. >> it is exhausting, isn't it? >> the amount of energy required -- >> when your own president has a boat load of energy. i'm always moosamused with trum energy. >> its exhausting. >> you're telling me. >> thank you, melissa. >> you had a five day sentence. >>> getting a little fast in the furious accident in new york city with all electric street racing coming to brooklyn. cool story. these aren't go carts, these are what's known as formula e racers. joining us now is -- how fast can these things go? >> closer 200 miles an hour. they race on city streets. you won't always get the full speed because you have to navigate. these go around the world, about ten races in a year. similar to formula 1. >> so relative, it's slower, faster, same speed >> it has much more zip.