we expected tarullo to eventually step aside. the question was, was he going to make it easier or harder for the trump administration? this makes it easier. what trump has to do now, what the president has to do is appoint a vice chair of banking regulation. and he was -- tarullo was never appointed to that job. and so this will has been the one for politicicing the dodd/frank and others before that, before dodd/frank came into existence. major obama era official moving aside and opening the door for a major trump era figure. >> steve liesman, thank you. >>> still ahead more from the trump meeting with prime minister abe. >>> keeping a close eye on apple as it closes in on its all-time high. lots to do. "power lunch" will be right back. opportunities aren't always obvious. sometimes they just drop in. cme group can help you navigate risks and capture opportunities. we enable you to reach global markets and drive forward with broader possibilities. cme group: how the world advances. the president and japanese prime minister wrappi

the federal reserve's daniel tarullo is stepping down.r still is for now, the top regulator of wall street banks. he leaves in april. leaves the federal reserve in april. our next guest is very happy about this. he says tarullo may have done more to harm the american economy than any single person in the history of the nation. a little bit strong maybe. come on in, dick bove. we've got it that you don't care for daniel tarullo, a socialist that ruined the country, but now that he's going in april which banks stocks should i buy that's going up more in the future? tell us. >> i think very definitely if you take a look at the largest banks in the united states they're going to benefit very meaningfully from his stepping away. basically, i would buy, you know, bank of america, citigroup, i would buy jp morgan, i would even buy wells fargo, i would buy morgan stanley, goldman sachs. you've got the foot on the throat of the industry that's been removed. you don't realize, over 20,000 working at citigroup, over 20,000 working at bank of america

your next guest, daniel tarullo, served on the council.s a great creation and put the emphasis on the economic and financial component of national security policy, as well as the work they do on the domestic side. they will have to work together, and there is a tension between the white house and the department. it could be either the nec or nsc, national security council. what we want to do is have a tension that is creative and productive, not personal and distractive. my impression so far is that these people are going to work in a way that does have a competitive element but it is going to be a competition of good ideas that will produce good results for the american people. carol: you say they do need to work together, but taste on your knowledge of these individuals, will they work together -- based on your knowledge of these individuals, they work together? robert: i think they certainly won't want to do it. what i know of them, they are the kinds of strong personalities whom you want, people who have driven results in the past in t

. >>> fire department again daniel tarullo is stepping down.arullo said he had a fairly strong presumption even before the election he would resign early this year and that the trump administration did not ask him to leave. >> i think this is a big deal. not only is he going to -- president trump going to get an opportunity to prove to now nominate a head of banking supervision on the fed. one very different likely than tarullo who pushed for higher capital requirements. but there are three open seats on the fed board out of seven. all have deciding votes to make monetary policy. >> i believe citi today has a cheat sheet on candidates. >> anyone stand out? >> john taylor, kevin warsh, and a couple others. >> so yes economists. we're learning the trump administration likes economists. >> that's what they're saying now. it's interesting on friday afternoon when the news of tarullo's resignation broke. >> stepping down in april so we'll wait on word for that. meantime, imf head christine lagarde said trump likely good for the economy in the short-

tarullo: that is an excellent point.o back to a decade or 12 years ago, what was the state of the financial system, including our biggest firms then? even though capital market and traditional lending had been integrated, when firms price or -- price for risk, a lot of the instruments in which they traded, they did not take into account the credit risk in bedded in those instruments. mortgage backed securities are the best example. two, they were not attuned to the possibility a you could have -- to the possibility that across the system you could have , a liquidity squeeze. three, in many instances, they did not know what their own risk was. in 2009 when we ran that first set of stress tests on the fly, as it were, we sent out requests for information, and more firms than one would have expected were not able to aggregate risk to the same counterparties from across their big firm. those are the things that produce the regulatory changes that we put in place, and those are the things that should not be forgotten as a his

the central bank's regulatory know-all dan tarullo handing in his resignation.ie gasparino, says he is hearing that the white house has a front-runner. the name the administration could be banking on. charlie is about to break it next. ♪ me to reach my goals. inside so i liked when my doctor told me i may reach my blood sugar and a1c goals by activating what's within me with once-weekly trulicity. trulicity is not insulin. it helps activate my body to do what it's supposed to do release its own insulin. trulicity responds when my blood sugar rises. i take it once a week, and it works 24/7. it comes in an easy-to-use pen and i may even lose a little weight. trulicity is a once-weekly injectable prescription medicine to improve blood sugar in adults with type 2 diabetes when used with diet and exercise. trulicity is not insulin. it should not be the first medicine to treat diabetes or for people with type 1 diabetes or diabetic ketoacidosis. do not take trulicity if you or a family member has had medullary thyroid cancer, if you've had multiple endocrine neoplasia

>> governor tarullo, just so you know how mike feels about you, the inscription here is really nice.ou're known as a tough guy. i'm sending this special valentine to let you see, governor tarullo, you're the only one i could ever love. you're everything to me. happy valentine's day. >> bank stocks are up 50% from their lows. we think they have another 50% to go over the next three years. there should be a lot of love from bank investors. >> does that make you incrementally more bullish? i know you're bullish because you're recommending for the first time in many, many years a lot of the top bank stocks. but does it make you bullish that that block box could be thrown out? >> we don't need the trump bump. >> they're just gravy if it happens? >> exactly. >> got it. mike mayo. be sure to catch dick kovacevich and william isaac on closing bell today at 4:00 pm eastern time. >>> allergan shares higher. all about optics. another pharma company in the news for hiking the price of one of its drugs. we're talking about a seventh-fold price increase. washington taking notice and has put the co

the banking indexes parking higher on the news that tarullo is resigning.crack down on banks, so investors may see this as a positive that he will be stepping out of the way to remove regulation. we are looking at a rally for the s&p 500 not just as weak, but also for the last three weeks. up nearly 1% over this time period. a bullish streak for stocks. to round it out, we look at the dollar versus the end, it's been a while today. .- two the yen it's been a wild day. right now, with the dollar higher against the yen, abe is winning, with the yen we getting against the dollar. it will be interesting to see what happens against the long term, whether the dollar keeps these games are dropped off in the week ahead. david: abigail doolittle with that update. as we bookend this press conference with shinzo abe and donald trump. julie: you can go to tv on the bloomberg and you can watch bloomberg tv. watch the press conference. david: all the charts on the right-hand side as well. julie: exactly. this is bloomberg. ♪ scarlett: i'm scarlet fu. oliver: i'm oli

last week the governor tarullo announced he is stepping down. -- i also want to recognize john alvarez in his 36. federal reserve. he is seated right behind. mr. alvarez. he is in his 36th year at the fed. he has been general counsel for over a decade. thank you for your service mr. alvarez. madam chair look forward to hearing more from you about the currency of the economy, the importance especially in sports of strong rules to guard against economic calamity. i know you're not going to be there for ever although i wish you were. and the importance of a strong rules that you have put in place and you will continue to put in place over the next dozen months or so.and what congress can do to help the economy create jobs and make it easier for all americans. and ió, all americans to accumulate wealth to buy a home, to pay for college and to have a decent honorable dignified retirement. madam chair. it is a pleasure to see you. thank you senator brown. again, madam chair we appreciate you being here. we look forward to your opening statement at this point and then we will engage in some i

daniel tarullo who has worked at the central bank it's single 2009 did not give a reason for his departure. it gives an opportunity to reshape the board. and there are reports late today that the white house is not planning on taking its immigration order to the supreme court. last night, we told that you an appeals court upheld the block on the president's travel ban. >>> still ahead, is there potential trouble brewing in europe that investigators. >> investors need to pay attention on? >>> the food and drug administration approved a treatment for muscular dystrophy, a rare type that we've been reporting on. the drug is made by marathon pharmaceuticals and is the first to win fda approval. even though it has long been available outside the u.s. the new list price for the drug is $89,000. that is 70 times higher than its price overseas. the drug is not a cure but it has been shown to improve muscle strength compared with a placebo. >>> president trump's proposed wall along the u.s. mexico border could costly nearly $22 billion. as first reported by reuters, it could take about three and a

trump's thou to rollback dodd-frank is that direct tarullo.w -- that means that donald trump can fill three of seven seats on the fed board. president obama never officially ullo to the fed board, but that is the role that -- plate.very we know that janet yellen will talk about the economy and rates. if she also going to talk about the overhaul of dodd-frank? reporter: i do not think she can help it. in december she defended dodd-frank. henryast month, patrick warned the fan not to make -- the fed not to make any more agreement until donald trump has made his views known. they want to know if janet yellen will endorse three fed rate hikes this year. the bloomberg intelligence team says yes, she will repeat this view of fiscal uncertainty. economists only expect one rate hike in june, and another in december. up next, a record it wave -- heatwave across australia. there is a threat of blackouts. we have the details ahead. this is bloomberg. ♪ haidi: this is "daybreak australia." betty: australian prime minister is advocating more gas and hydroe

the fed's tarullo said the election was not a consideration.ty rules are well grounded. they should be had durable. there's room to change some rules without undercutting stability and he said trump's regulatory direction is unclear but it is hard to argue with principles that the administration has articulated at this point. so he is making some comments about what lies ahead given the fact the trump administration has talked about rolling back some regulation on financial services. back to you. >> all right. thank you. >> watch out, victoria's secret. there is a new lingerie maker on the scene and we'll tell you who is getting in on the game after this. who do you work for? your boss? yourself? your family? our financial advisors are free to realize a plan to fit your family's unique needs. we'll listen. we'll talk. we'll plan. baird. what are you doing? getting your quarter back. fountains don't earn interest, david. you know i work at ally. i was being romantic. you know what i find romantic? a robust annual percentage yield that's what i f

is daniel tarullo stepping down a game changer?t tipp i think the main thing is the underlying fundamentals. robert: it could be less hawkish at the fed, although prior to donald trump selection -- elect ion, there was something seen about the low interest-rate environment that the fed was creating, there was something unwholesome about that. but when you think about it, he has a lot of people to a point and i guess they would be dovish. joe: you anticipate in my question, because prior to the election you would think that republicans were critical of the fed's dovish policies, but who wants to appoint somebody to the fed that is going to work cross purposes, especially when you are trying to get gdp near 4% year after year. robert: you have a background in real estate and what the high interest rates. the best interest of the economy in the long run is good economic growth and stable inflation. but really the thing that people do not expect of higher inflation and going through: clue might -- going to employment my those are not r

daniel tarullo out at the federal reserve.f the house financial services committee, republican from texas, congressman jeb hensarling. congressman, when this gentleman leaves in april we are told that that frees up the federal reserve, that they no longer have the chief banking regulator in place, and that the banks will be freed from the yoke of daniel tarullo. you're on the financial services committee. you chair it. what do you make of that? >> well, number one, the president, the former president, president obama never appointed formally anybody to this position. so you had dan tarullo, perhaps unlawfully filling the position, but what we've had here is essentially the federal reserve figuratively if not literally having a board seat in america's banks. so unelected bureaucrats can essentially micromanage our banks. they can allocate capital along political reasons. this is not a good thing. we need more capital in our banks to prevent losses but ultimately, we have had eight years of dan tarullo. we had eight years of ess

there is a direct challenge to tarullo.t means donald trump will be able to appoint three new governors to the fed board of governors. betty: we know that janet yellen will talk about the economy and interest rates. will she talk about dodd-frank and regulation? >> she is been asked about it before and she has defended dodd-frank. you need the capital requirements to keep being safe. endorse three rate hikes. let's go to another chart. you can see the line just in from the left-hand side. the cluster in that diamond are the officials at the meeting in december when they gave their forecast. it is barely consensus. but the consensus is three. will janet yellen endorse that in any way, shape, or form? they have a different view. hikes only in june and december. yvonne: governor kuroda has been upbeat at the prospects of growth as well as inflation. he upgraded is forecast earlier this month. could he be disappointed? >> maybe a little. it is in the market now that the numbers will slow a little bit. on fourthaying 1% quarter

governor tarullo was quoted as saying the si -- funds for future stress events.e association whatsoever with the terms systemic risk and asset management. so my first question is, are you aware of anybody in the administration directing either you or governor tarullo to negotiate with the financial stability board on asset management regulation? >> it's done in negotiation with the financial stability board. anything -- any regulation that is put into effect in the united states has to go through -- >> i understand that -- >> the rule making process -- >> but the question was has there been any contact with the new administration with the fed to carry on negotiations with respect to the asset management question with the financial stability board? >> well, we participate regularly as part of our established responsibilities in discussions congress -- >> as you know governor tarullo was never confirmed by the senate. are you aware of any specific statutory authority he has to negotiate on behalf of the united states on the matter of asset management and systemic r

policy.ters is monetary dan tarullo resigned last week.take the assumption of and accordinglen to for previous chairs that stood down from committee, then trump has five out of seven. he can completely recast this committee anyway he wants. the world's largest central bank is in donald trump's hands. we need to make a production -- what does it mean? that one is difficult. goingas an allegedly man to be wanting some yes-men who will keep monetary policy nice and soft and absorb this tsunami of federal deficit coming down the line? that is one possibility. or is he going to take a republican party line that we need some sort of hard money to get the discount rate up, we need some creative destruction, which of those donald trump's are going to show up? i think it is more likely to be the latter. if you look at donald trump, forget about the twitter feed and look at the -- look at the appointments has made. jeff sessions,e right across the board, they have been pretty mainstream or hard-core republicans. the supreme court nomination as well.

i would call this the dan tarullo trade. this is where we can get into this whole argument.trump really doing anything or not? i think you're at a place with the banks. on some level it doesn't matter. i think the bull's-eye has been taken off the bank. the higher banks, bank of america ask citibank have the most operating leverage in this environment. >> dan, dan, dan, what do you say? >> bank and citi, those are the two i wouldn't go after. jpmorgan is breaking away. just stick with that. just think about what the year could bring with tax reform. go with morgan stanley or something. goldman sachs is making a new all time high. that's the one i would go to. it seals like citi and bank. >> you're not will having to me. the environment will is the environment where they'll perform. >> they the haven't performed a relative basis at the bottom. why would you expect that? >> people have not believed in this rally. >> actually, the deregulation happened. who has the biggest bull's-eye on their back in terms regulation? they're going after bank of america. wells fargo has its own

on wednesday, bloomberg's david west will interview daniel tarullo, the goto man on enforcing banking. you can catch that exclusive conversation at bloomberg " daybreak america" at 8:00 a.m. washington time. we will hear from the company's ceo next. this is bloomberg. ♪ cory: the russian state-run company with more than 300 servers of russian-made microchips to the interior industry. it is a loss for ibm. the shipments were placed -- replace equipment made by ibm and other foreign inventors. they were dropping microsoft for domestic made software after president vladimir putin called russian authorities to reduce their dependence on foreign technology. largest shareholder stand behind the security company and plans to buy more shares according to any email, which does not think it is time, according to the president, to pursue a sale. tookeo took me less -- over only last june. the rising threat of cyber attack on what it means to the company earlier at the goldman sachs tech conference. >> one of the things we did in the air force is we said, if an airbase got compromise, the one sta

governor tarullo sort of did it de facto rather than actually being appointed to it.ation never appointed anyone to it. so that position should be filled. and i think it is very important. it has a lot of interaction to do abroad especially on the -- with respect to the financial stability board. and this particular board has no real authority. it has a lot of inherent authority just because of the way bank regulators work in a consensus type of way. but it's not powered by treaty, not by anything else. and i think we need to have somebody who is philosophically strong in that and who realizes that regulations really do -- have really cost the economy in terms of jobs, in terms of growth and we need to be smart about the regulations. >> one last question on process here, paul. we mentioned you're a member of the forum. we got these manufacturing ceos doing working groups at the white house today. we had a discussion this morning about how much of this is truly for show and what policy, if any, actually gets done at these meetings. can you think of an example of one? >

van dam tarullo # # >>> hello again, everyone and thank you so much for being with me.>>> absolutely intolerable. that is the response from the u.s. and japan after north korea fires a ballistic missile. south korean officials say the north side fired an intermediate range missile, the missile traveled about 300 miles before crashing into the sea of china.

raising the $50 billion, again, tarullo said that in '13 and i agree with him. think banks at 70, 80, 100 billion in assets are a threat. that one i think should change. the problem is the republicans who've been in power say the house for all these years since we passed the bill nearly seven years ago haven't wanted to do those smaller improvements because they would like to -- they're insisting on repealing the whole thing. by the way, as to the orderly liquidation, that's the part that outlaws bailouts. that's the part that says what the bush administration felt it had to do in 2008 when it paid off $170 billion of debt that aig hadd incured by credit default swaps, that can't happen again. so if in fact they don't fund orderly liquidation, that's a way that makes bailouts illegal. repeals the authority to do that. if you don't have that, i guess you're getting back into a bailout situation. >> was the u.s. economy hostage to big banks in 2007? it was. is the u.s. economy hostage to big banks in 2017? it still is. that's a problem. >> you still think it is, j

and take a look at the players involved, dan tarullo, currently the number one person on the fed whorsees bank reform. he could be replaced pretty quickly. janet yellen is sticking around for january 2018. she has a lot of -- she expects a lot of support for this rule. there's steve mnuchin, nominee for the treasury secretary, and jeff hensarling from house financial services. and then the senator taking over the senate banking committee, he's going to have -- he's perhaps more moderate than hensarling when it comes to dodd/frank reform. and here are some of the issues. can't put them all up on a single screen. capital levels for banks, those that exist right now, the raised levels, and those for the biggest banks. the volcker rule that was never implemented. resolution authority. how do you resolve a bank once it's gone bad? and then a big issue of contention, the consumer financial protection bureau, where the republicans hate it and the democrats may lay down the mat for it. so, guys, i think maybe the market is right to price in some increase when it comes to bank earnings from g

tarullo expecting he will be replaced. resigning, getting ahead of that the fed will be reason -- without a senior bank regulator for some time even if donald trump nominated someone tomorrow it would take a while for them to be confirmed. interesting process. interesting to see what she says about it today. , which very quickly should get some more political type questions. more on immigration. my did move markets? michael: that probably won't move markets too much. we know where she stands. the second day does not move markets so much. she has sandwich is going to say on monetary policy. the rest will be of interest but i think would you have seen is the fed priced in now. people are looking down pennsylvania avenue, back to the white house. mark: thanks a lot. bloomberg press international vonnie: policy correspondent. also today in washington dc president donald trump said to meet with leaders and ceo beginning in just a few minutes from now. one of the big concerns, the proposed for adjustment tax. -- our chief kevin

much fed watching on this program, today, we will, because that man left hand side of screen dan tarullopril leaves boards of governors opens up a space on boards of governors that president trump confill you are right maria this daniel tarullo in charge of way bank regulations banking regulations were written interpreted enforced, he goes, and i think president trump has a much freer hand to reform financial regulation putting new people on the federal reserve governors board i think going to do it out that is why banks stocks wouldn't up so much on friday. went up so much on friday, part of the reason market going up more this morning if you loosen up lending from the banks, in our economy, you might get more economic growth, that is what investors want, so this resignation to come in april dan tarulloi. big deal. >> i know you have more in 15 minutes we see you you "varney & company" how about this? "varney & company" 9:00 a.m. eastern after "mornings with maria" how about this stu. >> i believe that is the super bowl jersey. >> we've got right here on set going to talk about it bh we

tomorrow morning, daniel tarullo joins bloomberg daybreak: americas. >> you are watching "bloomberg technologyeady turned -- has overturned a obama era anticorruption rule that would require oil companies to disclose payments to foreign governments. ahe first to take advantage of processor's -- -- poster puzder testified thursday. the senate confirmed linda mcmahon's nomination to lead the small business administration. she sailed through with a vote of 81 to 19. the white house will start public stores after months of shuttering the building to tourists, according to melania trump's visitors office. that usually stop tours during the presidential transition, then start them up more quickly. medicine square garden -- madison square garden has banned to charles oakley after a competition with security guards after the game. a reconciliation was facilitated by nb

and the king of fed regulation, federal governor tarullo is stepping down about five years before the end of his term. my twitter feed, things just said don't let the door hit you. but those are my people. there are people that send stuff to me. >> probably not unexpected that he's stepping down. >> he was the king, as i said, the king of financial regulations. in an interview with "the wall street journal" tarullo said he had a strong presumption before the election that he would resign early this year. we had him on long before he became a fed head on the show, and the trump administration had not asked him to leave. >> but there had been speculation he would be stepping down soon. >> that, to me, is probably more important than just about anything that's happened thus far when it comes to banking regulation. >> that he's stepping down. >> people talk about dodd/frank, virtually any policy that has not been enacted or not thus far, this is probably the most important thing that's actually happened. >> right. >> it will change the dynamic. >> how they are actually enforced will tell

that was part of our exclusive interview with dan tarullo.orrow, we will meet with stanley fischer in an exclusive at 6:30 a.m. in new york. this is bloomberg. ♪ scarlet: even before softbank announced, there was a lot of movement around the deal. for 3.3 but fortress million -- $3.3 million. the bottom is where it gets really interesting. the focus on the bright blue ane here, that is a volume on lush options. it jumped the most since april. the number of calls in march with a price around the current level, the stock almost quadrupled. always very suspicious when you see the huge options moves. we have got an interesting view of economic data. one data point i want to zoom in on, the cbi report, finds that inflation pressure continues to build in the economy. this is one of my favorite tracks taking it down. line, the purple inflation. that is really accelerating. measure, thatfed tried to -- energy, sort of mediocre p a line, core inflation excluding housing, also not that hot. it is one number but do not jump too much. a reasonthis might

we had a letter from dan tarullo . a concise letter. time working yellen.irman how much does that change when he steps down in april? guest: i think it leaves a gigantic hole. he has been there eight years. it leaves a gigantic hole. a lot of us are quite worried about the people that president trump might send over to the fed. he has three vacancies, which is enough to really transform the board. and presumably, one of them will be the vice president for chairman,n -- vice excuse me. for supervision and regulation. david: any idea who those people will be? i was talking with john alice this morning, a valid libertarian. -- a vowed libertarian. here knowledge to how difficult it would be to navigate if he were appointed to these affect change. someone who doesn't want to be there. guest: there have been a number of names bandied about on politico and other websites. john alice is one of them. a lot more than three. that't have to tell you president trump has shown the capacity and the desire and the capacity to surprise. i think he want

it is interesting, janet yellen, stan fischer, dan tarullo on banking regulation, they are all slatedobs next year, from the specific jobs. the will leave, there are two seats on the federal board of governors that barack obama was never able to get filled. that means five open seats potentially for donald trump to put in place, and these terms last for many years, so it could have a take impact on the makeup of the fed them a but i guess richard davis has better things to do. thank you so much for that, kathleen. all right, let's head to show business. profits falling 13% last year compared to 2015 as sales post their slows growth in eight years. , let's look with imax china executive with us on the program. decreased box office activity, an increase in the number of orders for the screens. in 2016,record numbers more than the previous two bank years combined for you guys. does that speak to overcapacity? >> first, thanks for having me. no, i don't think so at all. mature movie market, you have ups and downs and it is difficult to predict how the box office will unfold. and china has

ron brownstein measured the number of governor tarullo seats, senate seats in other down ballot measures and basically obama is right in the middle. this idea that he had some historic collapse, it's just not to pick his right in the middle. the fact that he's at 60 60% i think tells you more about what the public thinks about him. >> okay, we're going to have people lined up. lineup to ask questions. we have 30 minutes for that. as you are lining up i just want you throughout one question as moderator and as someone who covers the economy. the main question i guess for you jonathan, with matt comments, the nonpartisan congressional office has been warning for years that the debt is out of control. they keep stating that the direction in which we were going we could face a fiscal crisis. as recently as august of last year they issued the same warning. this is after basically after all that obama did. the same warning that we faced a fiscal crisis, the debt is running out of control. this is their third year projection. does that bother you at all that the warning and the danger still exi

tarullo, i don't always agree with every decision he made that we had a vigorous debate and he is a committedic servant and i want to thank him with his à for his service along with mr. alvarez. we were in the foxhole many times back in 08. and again i thank you for your service. madam chairman, i was interviewed earlier today. people have always sort of hinge there futures on what you have to say and i guess it is somewhat, thankful now that it looks like you have a little bit of a partner. at one time there probably were not going to be changes here, not the majority just the environment we live in. now we look at potential tax reform, potential changes to the healthcare policy, we look at things relative to infrastructure and all of that. as you see those possibilities occurring, is that affecting how you look at monetary policy decisions moving down the road? a stagnant situation just again because of the environment, a very changing possibility, policy environment here. is that something that is affecting your deliberations? >> so, we recognize that there may be significant economic poli

with regard to your deregulation helping financials theme, we learned that tarullo is the latest to stepd. financial regulator pushed for high capital levels, president trump is really going to get his chance to shape this fed. three open seats on the board out of seven. what does this look like? is this going to be a market friendly idea or not? >> to be clear anybody can buy financials, the thing about being a fundamental investor is look at wlast going to happen with respect to the fed become more growth friendly, more business friendly, more hawkish, which remember if interest rates go up the economy's going up. if the economy's going up, that means stock market's going up. we haven't been in a cycle like this since the '80s and '90s and many investors haven't been around to see this move. we think it's fundamentally driven to what's happening with the fed and less regulation across the board, not just financials but the fda, epa, fcc, this is the most positive secular story with respect to what's happened with the platforms that president trump is putting forward. >> wow. super bowl

serving ased tarullo the vice chair. he technically wasn't.nt between the obama administration and congressional leaders. i think there will be a big push to have that fold. that's also the relationship between d.c. and the fed. willoughby urging to go to a rules-based monetary policy or more congressional oversight. will that be the fed as we know it after 2018? michael: i think there will be some changes, as you say, related to transparency, things of that nature. i think going all the way to a tailorable for setting monetary policy may face an uphill battle in the senate. some of the changes may be more cosmetic then really pushing policy into a straitjacket. alix: you sound so optimistic, michael feroli. ok, what can we expect over the next 48 hours. when you look at the probability of a fed rate hike in march, that has been slipping ever since they hiked in december 2016. are we going to hear cautious hawk from janet yellen or another dove from janet yellen? likely: i would say were another dove. you have to remember the late january fomc

the subplot, i believe there are some into chairs of the fed led by the new emptiness of governor tarullois committee tell chair yellen who to put in that slot? >> no, they can tell her who they won't let fill that slot. the fed governors have to be confirmed. that may not even come up today. that is a presidential prerogative to name members of the federal reserve. it may come out and passing of they talk about regulation, however. they never appointed -- the obama administration never appointed a vice chair for the supervision as the dodd-frank calls for. not only do they have been to reload leaving, but there is -- enter a look leaving, but there is an opening. they may make it known. you know you will hear from elizabeth warren on that. francine: how much will the markets listen to janet yellen? it will be interesting to hear her thoughts on regulation, but how much can she set the tone for monetary policy given there are three vacancies coming up that donald trump will fill? michael: she will still be running policy, at least until next january. people will put a lot of credence in h

dan tarullo announced last week that he is stepping down.ed bloomberg daybreak in an exclusive interview. >> i do think that there has been an awful lot of progress made for two big to fail companies. it is substantially greater than indicated, capital levels are way up, because of what i mentioned, we now have liquidity regulations and a much better management system. made progress on a revolution regime that will make sure that no industry is too big to fail. i do not think we are there yet. that is why we are very aware of the progress needed. when somebody comes and tells you that we have solved the problem that is when you should be worried. because the financial system adapts so readily and so expertly and a lot of ways to create opportunities, the financial regulatory system needs to be attended by those changes. that is what needs to happen. >> he speaks exclusively with us earlier today. testifiesjanet yellen before the chair. what you said about the dodd frank. >> we are looking at the living will process, visiting the capital, mak