in the future decade out in the future, the feds models, when you look at the median of all the dots, sees a raptor -- rather optimistic return to 2%. what is the cleveland the markets are not? loretta: let us look at measures of underlying inflation. one of the things that you have to be aware of is that oil price shock effects headline inflation significantly. we have been running of .4%. brendan: we are talking core inflation. loretta: those of the dynamics that the fed models predicted. as oil prices stabilize later in the year after the big downturn starting summer of last year, we saw the core measures moving back up. that dynamic is still there. you're going to have another as i expect headline inflation to stay week for quite a while to come. oil pricestually as stabilize, inflation will come back. it's important to remember that oil prices do not have to return to their level before the downturn. as long as they stabilize, inflation measures will move back up. brendan: nothing that is happening in court inflation right now gives you pause and says maybe the models and understanding we have a what causes inflation is not as it used to be? loretta

yesterday, the cleveland fed president was not too concerned about the impact of the chinese slowdown on the economy. >> we have built in a weakening path for china and i do not see that as significant. there is a direct trade channel and this is not that large. again, will it have a direct effect on the economy? i do not believe it is significant. >> happy new year's. welcome to the show. the chinese are intervening. how worried are you about china? go more with one of the best-performing stock markets last year and the difference between the economy and the stock market is not strong. putting that to the side, you christmasmmented on and nike looking for the bottom-up view on china to perform well and this is all about a move to services and consumption that seems to be working. that this is a volatile and casino-like market with a good chance that they will bring up the premium and it is a 35% premium. when we got involved in asia, ande was a small this batch we are out of those shares right now. the global investors get we fell into that too early. >> you like the reorientation of

betty: speaking about interest rates, brendan greeley interviewed the cleveland fed president who is a voting member this year. she talked about inflation and interest rates also talked about china. i want to play part of that interview for you. >> we built in a weakening path for china. i don't see that as a significant risk but it's certainly a risk. theill look at that but actual direct trade channel but the u.s. and china is not that large. will it have a direct effect on the u.s. economy? i don't see is a significant risk. betty: do you agree? >> first of all, i know loretto well. she was research director at the philadelphia federal reserve and taught at the wharton school. she is a wise woman. for the u.s., it has to do with commodity demands and oil demand. motors has its best a sales in china. i disagree with her that it would not have any affect. i don't know what slow down she has built-in but i do not think increases that 4 .he blood penciling in i think we will have a slowdown andhe u.s. economy inflation will not hit their target of 2%. i think we are only going to have

joined by brendan colleague out in san francisco, who will bring us interviews with the head of the cleveland fedard. tom: all of this international talk is great, but i have a 401(k), and i do not know if i am brave enough to open the envelope. everybody is behind or feels behind in their retirement plan. what do they do? michael: a couple of broader comments. when you step back and -- tom: the grateful market and all that. michael: it is important to step back and realize that if you were long on the spx last year, you did not really lose money. it was basically finishing where it started. and you clicked a 2% yield on that, if you will. clipped a 2% yield on that, if you will. it is athe question -- hard question to forecast next year in terms of how equity in the broader risk is going to do because there are two swing variables. it is not the u.s. jobs data. it is oil and it is also china. both of those things are hard to predict. that is one of the reasons why things are going to be -- tom: what strategy do i take? what is my two-do list? all, do not --of there are a lot of reasons to be bea

withrday he spoke president of the cleveland fed. her about what she worried about developed out of china, which she worried about what was going on with the s&p 500. you have spoken to central bankers before. you know exactly what they say. the markets are out there somewhere. we are not worried right now. this is what she said. >> underlying fundamentals of the u.s. economy remain very sound. there is going to be volatility in the markets. that's the nature of financial markets. -- they out of china released some manufacturing data that was a little weaker and that spilled over to the u.s. stock market. brendan: so her estimates for growth in the coming year are 2.5, 2.75. is in general more optimistic than the markets are. thishan: you are calling nerd mardi gras? why? because thousands of economists every year get together and try to figure out what is the thing that we don't completely understand that we are trying to understand? amazing as economics gets. last year they all sat around in boston. i went and the question was, who

the body. >>> in september the feds gave $7 million in grants to cleveland and cuyahoga county to reduce the number of homes with toxic levels of lead. >> from lead to listeria. bags of lettuce recalls. an ohio plant is shut down. the health experts say you shouldn't put your guard down let. pulling the lettuce off of the shelves and to be sure you don't have the lettuce in your refrigerator. it is sold under the bags dole, for example selections simple truth. market side president's choice and the little salad bar. check for the letter "a" at the beginning of the manufacturing code. >>> usually it is associated with raw meats unpass your rised dairy products but because this is found in soil any fresh food could have it. with listeria it is stomach problems but one person has died and another 12 were hospitalized in this outbreak. listeria has the greatest threat to pregnant women and their unborn babies. >> columbia and venezuela have a case in a rare syndrome that may be linked to the zika virus. it can lead people temporarily paralyzed. investigators are trying to figure out if the mosqu

the chase, cleveland councilman mike polensek amy lange sent a memo demanding action on sunday chase from you put intond the clue the northeast northeast side ended with a crash into a home,st the council, is fed up with chases by suburban police into cleveland often ending in crashes. today it is pure insanity.uf >> my points across the city leaders to call a meeting with suburban police, when they chase into cleveland who wants them to follow the same chase policy and city cops,ha. >> look at the number of cases where cars have been hit and houses, whole sections of power have been taken down . to give you an idea how long this has been a problem, i reported on a chase fromyo a decade ago and council il polensek shared with the e-mails he written in fact year is one from 2,007 .. >> we shall you be cleveland police bosses often cold cases even after violent crimesn, is fallout from a deadly chase, this weekde euclid police at this .id. >> we have a sacred duty to the public but balance thatat versus to be considered v v. >> a shows the safety director recently discussed this with the county police chiefstynt and polensek not satisfied. >> don't tell me that i had to wait for suburban committ

up right here on cleveland 19 news, while two members of the bengals coaching staff are considering cleveland, the nfl is considering banning one of their players. >> laura: and the feds are taking a major step towards making our roads safer. are company should treat you [phone rings] operator: health care customer service patricia ramirez. colleague: colleague 2: lady! this is the real question: where's the ring? ...we mean more like this. we can do this together. an appointment specialist, ok? member: thank you. you deserve compassion. you deserve molina healthcare, your extended family. medicaid. medicare. marketplace. for more information, >> announcer: live from cleveland us a news center, driven by don joseph toyota in kent, this is cleveland 19 news. >> q: well, if you watched this game yesterday, this game will sound familiar to you. burfict, well, he cost the bengals a spot in the afc divisional playoffs with his head-hunting hit on prg steeler antonio brown. but he also set himself up for a possible suspension. the league will reportedly drop the hammer on the bengals linebacker sometime soon. burfict is a repeat offender. during the regular season, the nfl

why the cleveland water >>> live from cleveland's newscenter driven by don joseph toyota in kent this is cleveland 19 news. >> mark: as we have been reporting, the feds are investigating kent state university associate professor julio pino for possibly recruiting students to join isis. >> denise: that's right. we learned the f.b.i. interviewed students about pino. emily mills is editor of the school newspaper the kent stater. tuesday afternoon f.b.i. agents questioned her about julio pino because she reported on him in the past. with their permission she reached out to pino and asked if the allegations were true. >> yes, i did ask and he said he was not involved and is not involved with the islamic state and does not support the organization and is not actively >> denise: dan deroos is joining with us troubling writings of pino. >> dan: take the isis question out of the entire issue and can you look at it. the professor made numerous statements against israelis and against israel. he has done a number of letters, letters to the editor through kent wire, that's really the kent student newspaper. this was a letter to the editor written by the professor

the developing brain. >> in september, the feds gave $7 million in grants to cleveland and kioga county to reduce the number of homes with toxic lead. >> now to a developing story, the hillary clinton campaign is demanding the state department to release 20 e-mails deemed top secret. from her time as secretary of state, but helped seven e-mail chains in full. those are said to contain heavily classified information. the clinton campaign stands by the position that none of the e- mails sent from her private server contain state secrets. >>> the iowa caucuses are in just three days. the two leading democrats are fighting tooth and nail for every last vote. the latest poll show clinton and bernie sanders are now nearly tied. candidates a boost at the polls remaining impartial. rallying congressional democrats. >> everyone is scouring my every word to see if i'm trying to put my finger on the scales. so let me simplify things. democrats will win in november and we will have a democrat. >> the two cocandidates are give undecided voters another chance to hear their stances on the issues. they tentatively agreed t

the new york fed also published the most important district regional federal reserve -- there are 12 of them, including one in the city i live in in cleveland. the new york fed is the most important for a number of reasons. it publishes an annual report of the system open market account that includes a detailed summary of open market operations over the year. it includes balance sheet and income projections. i would add too this chair of the federal reserve is more open to the public. this chair of the federal reserve is out and about the country, as her predecessor was, chairman bernanke and chair yellen even more so. she was in cleveland not too long ago last summer making a speech to the cleveland city club. and afterwards she and i went to visit a large cleveland national manufacturer with a large site in cleveland so she could see sort of the real economy and talk to workers and see how important manufacturing is, especially in the middle of the country, to all things federal reserve. it goes on and on. i wonder, mr. president, how many of those claiming the fed is not transparent have actually taken the time to read some of these repo

the cleveland police department fires a half dozen officers. how an incident three years ago led to six cops losing their badges. 3 the feds finally take action against those involved in a ranching standoff.and it took a deadly turn ... 3 no more narcan ...what a group that helps drug addicts is doing now that it's supply of the life-saving drug has run dry. 3 good morning cincinnati.thanks for joining us on this wednesday.. i'm john lomax.and i'm sheila gray.the stories of the day are coming up. first a check of the weather. here's meterologist john gumm. 3 3 the firing of six cleveland police officers marks the end of a three-year investigation. their badges were taken for their involvement in a 137-shot barrage that killed two unarmed people.. the city fired the officers yesterday, and suspended six others. the police department says they didn't have permission to get back in 2012. it started when they mistakenly thought an engine backfiring was gunfire. it ended with the deaths of timothy russell and malissa williams. the head of cleveland's police union calls the firings unbelievable. 3 "they put a hat together and just started pulling names out

the ptrail down. p>> catherine: they're smart. pthey're very smart. pwe have to be smarter. p>> mark: hang up. p>>> coming up on cleveland 19 pnews, superbowl security threat. pwhat the feds are saying about p. p>>> now for a quick timeout with pramone pramone and tony. p>> mark: romona is off again ptoday. promona that said we did okay. p>> tony: we did okay? pthat's good. pi can tell you what she's doing pright now. precovering from the cavaliers pgame. p>> mark: that was pitiful. p>> tony: it's alarming. plisten, it was a brutal loss. pthey were consistent, by the pway. pthey were down 20 in the second pquarter, 30 in the second pquarter, 40 in the fourth pquarter. pi'm glad they don't play five. pthey have now lost five pstraight. pthe warriors the defending are pthe standing champions. pto lose in this fashion on your phome court and then have the pcoach say after the game we just pweren't mentally prepared to lay. pi don't know how that's ossible. pi think that to me raises psomewhat of a red flag. pnow, the bleacher report came pout after watching steph curry pdo that. pdid you see this? p>> mark: no, i did not see it. p>> tony: it had a picture of plebron from phe

the council is fed up with chases by police from eastern suburbs into cleveland often ending in crashes this time. >> mike polensek one city suburban police when w they chase into cleveland company wants them to follow the same chase policy is city copsve, one chase from the outside to many.e >> looking at the number of cases where cars have been hit, houses have been hit, and all sections of our taking down .,, . >> to give you an idea of how long this has been a problem, i reportedouha on a chase from suburban police with a crash on the eastside a decade ago, council plans it shared shared with the e-mails you've written for years in fact here's 142,007 .t >> we have shown you cleveland police bosses often cold cases even after violent crimeses, fallout from a massive chase that turned deadly this week the euclid police said this.as >> we do have their sacred duty to the public about theed johnson actso of the jeopardy versus protecting them is something that has to be considered. director discuss this with the county police chiefs.h >> don't tell her that i had to wait for some subur

. >> it can actually be damaging ] [ indiscernible - low volume ] >> in september the feds gave $7 million to cleveland and cuyahoga county to reduce the number of homes with toxic lead . >>> a developing story, the hillary clinton campaign is admitting that 20 emails have been release from the state department that were top-secret. they contain heavily classified information. hillary clinton stands by her statement that none of these emails content -- contained critical security details. >>> clinton and senders are neck and neck in iowa. a candidate a boost by endorsing them would be president obama. >> everyone is scouring my everywhere to find something for me to see if i am trying to put my finger on the scales. let me simplify things. democrats will win in november and we will have a democratic president. >> they have tentatively agreed to another debate next week in new hampshire. >>> donald trump skipped thursday night's debate and he thinks it may have paid off. he is affirming his decision to skip the debate. >> ted cruz is in second place and he got pummeled last night. i'm glad i wasn't ther

cleveland's east side as well. it happened friday night near east 40th street. the boy exchanged gunfire with another person and was hit two its. neighbors say they are fed up with the violence. >> we move as soon as problem. >> 15-year-old? that's so sad. that is so sad. and it scares me. >> cleveland police are searching for the person who shot that boy. anyone with information is asked to give then a call. >>> also new this morning, but still investigating a series of bomb threats that evacuated stores in and around canton. target, walmart and even some convenience stores. a police station as well were on alert. none appeared to be credible after bomb sniffing dusting of snow r with sent in. a few target stores across the country had bomb threats called in recently, including one in california on friday. no word yet if they are at all related. >>> new this morning, right now news channel 5 has learned a second suspect is under arrest in connection with a series of armed robberies in little italy. the latest arrest came one day after that first suspect you see there, johnchez phillips he's behind bars. the men robbed three people last month, including

fed up with the violence. >> that was enough years old? i don't understand that. that's so sad. that is so sad, and it scares me. >> cleveland police are searching for the person who shot the h information is asked give them a call. news net 5 has learned of abeen a arrested in a series of robberies in little the men robbed three people last month, including a priest, who was pistol whipped. >>> happening right now, bedford police are trying to of robbing the pnc bank on west grace yesterday afternoon, just after 2:00. the mandy handed cash from the no weapon was scene, but if you him, call the bedford police department or the >> a turn of event nbc the middle east tonight. the united states announced a americans held in iran. in return, the u.s. will drop charges against 7 iranians. this comes just as a nuclear deal with iran goes into ter: five americans homeward bound, after a controversialle agreement to exchange prisoners with iran, and within hours of the deal, nal inspectors certified that iran had kept its part of a nuclear deal brokered by the united states, ending years of western embar urn for the steps that iran

the markets for a rate hike. we expect hikes from the fed this year. tom: futures are negative. brendan greeley is on the watch we have a conversation with cleveland.s is an important conversation. she is a centrist at your federal reserve. stay with us. ♪ tom: you could do a five screen did a check this morning, let's keep it to one. futures absolutely crushed to begin the year. doubt futures are down 271 points. dow futures are down 271 points. oil is elevated, we do not want to lay it up too much. -- play it up too much. that is a remarkable week symbol of the oil market right now. vonnie: saudi arabia has given iranian diplomats 48 hours to leave the country. the saudi's cut to ties after protesters in iran attacked the saudi embassy and set it on fire. afghan police say a suicide and kabul missed his target. the man was killed in the explosion, but there were no other casualties -- a suicide bomber in kabul missed his target. the man was killed in the explosion, but there were no other casualties. -- antigovernment group antigovernment group says they will stay in a federal wildlife reserve as long as it takes. so far, police are staying away.

cleveland is @about ficers short of @the 5,000 outside cops are @counting on to help. @some communities like parma @can't afford to give up @officers city getting $50 million @from the feds for security. @watchdogs are frustrated not @knowing where the money @>> we're attempting to learn @how the money will be spent. @expect protestors to take out @permits as required by law. @since is it took effect in @july, parade and festivals @consequence. @>> civil disobedience is part @of protesting. @>> reporter: police declined @comment, but cops chose not to @attend @meetings because they felt @place. @now, i'm told police began riot @training a couple months ago, understand you spoke with @tamir rice's mother and will @have an exclusive interview @tonight at 11:00. @>> reporter: that's correct, @her first local interview since @the grand jury decided not to two officers. @she's very candid, saying, @among other things, she was @totally unimpress with the @that. @thank you. @>>> one of the men accused of @murdering a cleveland toddler @appeared before a judge this @suspect. @a judge set a $1.5 million bond @for aaron dunming. @he and another man, donnell @lindsey, fired shots,

cleveland, ferguson, missouri. at the legal expert i spoke to said what is different about this request is that it comes from the top leader of the city, the mayor asking the feds to look into the police shooting of margo woods. we have received a copy of the letter, and the mayor writes about the need for the investigation due to the dissolution of trust between the communities of color and law enforcement following the death of the young man shot and killed by the police officer yours. he went on to say that he invites further guidance and counsel on what to do to prevent these incidents from occurring in the future. mario was was shot and killed in a confrontation with the police last month, and the please say that the cell phone video shows that he was not threatening himself or the police, but the police say he had just cut someone with a kitchen knife, and other methods to restrain him ultimately fail. this frustration from the bear comes after weeks of protests, and they crashed the mayor's inauguration event earlier this month. we have not heard back whether the feds will grant the request to investigate, but the legal experts say that the altar pretty

the burning wreckage. >>> live from cleveland's newscenter cleveland 19 news starts now. >> mark: today we are digging deeper into this man's past. feds say kent state associate professor julio pino possibly has ties to isis. he is not charged with any crimes yet but the f.b.i. says he tried to recruit students to join isis. team coverage on how he could moments away. >> denise: first let's talk

cleveland measures inflation. how to best understand inflation. if they use the word credibility, they are concerned about. what we thought we saw was a more bearish fedina's stock feds shows no signs of letting up. after the yuan reference rate was cut, they were forced to shut early for the second time this late. washe circuit breaker that instituted will need some tweaks. there is a halt of 15 minutes after the market falls by 5%. trading is suspended for the day at 7%. as soon as you start to get the 3% or 4% down, the market really starts to panic. everyone wants to unload their trades before trading gets suspended for the day. there is a snowball effect that makes the 7% cut off inevitable. clearly, there are going to need to be some changes. we are waiting to hear what the results are from that meeting/ . >> if the chinese authorities called you up today and said, what do we do? do we open tomorrow? do we have a longer hiatus? do we change the circuit breakers? what would you advise them? >> i would advise them to have a less restrictive, or wider circuit breaker and to see if the market can actually find it at the bottom. >> china has second t

cleveland's east side. it happened friday night near east 40th street. the boy exchanged gunfire with another person and was hit twice. neighbors say they are just fed up with this violence. >> we moved as soon as possible. that was enough right there. >> 15-year-old. i don't understand that. that's so sad. that is so sad. and it scares me. >> cleveland police are searching for the person who shot the boy. anyone with information is asked to give them a call. >>> also new, police issuing an all clear. still investigating a series of bomb threats that evacuated stores in and around canton last night. target, walmart, convenience stores, even a police station were on alert. bomb sniffing dogs were sent in in various locations. a few target stores across the country had bomb threats called in recently, including one in california friday. >>> another setback this morning for local workers. parker hannifin corporation will be laying off about 40 employees in cleveland. the company told news channel 5 the move in no way reflects the employees' contributions and adds the cut back was about alining costs with demands. >>> a second suspect is under arrest in

cleveland 19 news." >> brian: well, drones were a you can tell by the registrations taken in by the faa that it's been huge. in the past two weeks alone, 180,000 drones have been registered, and the feds are expecting at least 200,000 more. drone registration costs 5 bucks but it's refundable for people that register by january 20th. >>> the latest in the week of el nino storms is drenching southern california. >> brian: danielle nottingham is in newhall, california where the threat of mudslides has forced people from their homes. >> reporter: parts of southern california already soaked by days of rain are bracing for more wet weather this morning fueled by el nino. a third round of heavy rain uprooted degrees in the san diego area. >> the whole house shook. i hope my roof doesn't come off and me with it. limbs into homes. >> it came where i was sitting. if i didn't move, it would definitely hurt. >> many drivers had to be rescued from vehicles as roads transformed into rivers. the deluge caused mudslides that spilled onto highways. >> you can drive right into it, and all of a sudden you're up to your window shield here in mud. >> reporter: here in newhall the mudslide threat has forc