am joined by a republican who is not afraid to challenge his president, pennsylvania senator pat toomey. >>> then a deadline for u.s.-china trade talks is also fast approaching. we the ig into how that entire continent will reshape our world. we also ask the future of asia joins us. >>> plus -- ♪ what a wonderful world. >>e >>eeeeee stri -- striking up tho stephen colbert is taking a beat to broadway. [ music playing ] -- striking u stephen colbert is taking a beat to broadway. [ music playing ] -- striking u stephen colbert is taking a beat to broadway. [ music playing ] music playing ]s taking a beat >>> welcome to the program, everyone, i'm christiane amanpour in london. will it be shutdown, the sequel? hopes are fading fast for a deal to avoid the second government shutdown in less than a month after congressional talks broke down over the weekend. it means that hundreds of thousands of federal workers could be furloughed again this friday. the point of contention is, well the same. migration and the border wall. democrats are demanding limits on the number of unauthorized immigrant

for most part toomey made usmca doa . moderate republican supporting it, then i think you can kiss it good-bye. >> that is strange to me, look at numbers that nafta create the for canada and mexico. forget fact that we're buying over sens 70s% of their imports. so if you just look at numbers, i come from springfield, ohio, we had a industry ripped out as nafta came to be. those numbers alone tell you it needs to be renegotiating. they are not, 88ing. 88 -- equa. >> it tonall it, it only took 4s of show to agree. what robert said about senator toomey able to scuttle the deal, i think that white house puts real pressure, the republicans will have a very hard time scuttling this. by the end was day they will put out goodies outside of the trade deal to get some democrats on board, they work with democrats to have stuff in there labor should like. i think that thing will pass. there is flaws in the new deal, but there is good stuff in it, recognizing pharmaceutical protecttion, intellectual property rights, they went backward

know if it would be average inflation, and the points you raise are very good the fact that senator toomey was raising concerns about it points to the political difficulty. that i think will be the single biggest challenge. how do you communicate it without sounding like you're raising inflation targets. >> let's -- what's the takeaway for investors, then? is it that this kind of talk means a more dovish fed for a longer period of time than we previously thought chris ruppke is says rate hikes are coming, the economy is stronger than you think. >> categorically, perhaps yes, this is a profoundly dovish shift by the fed it basically means that not only did he allow the economy to overheat, they practically want it that's the only way they know to get inflation above 2% that means lower for longer. that does not exclude the possibility that even given that do muchish forecast, they may see another reason for a rate increase >> i wonder, though, if they do what greg is talking about without saying they're doing it. >> how do you get the public to believe it >> they can't -- >> because of acts

joining me right now pennsylvania senator and member of the budget and finance committee, pat toomeyow this economy stays strong, 3% or plus growth. you've got a couple things on the agenda here. you've got the usmca, nafta 2.0 deal that is supposed to get ratified. a lot of democrats i've spoken to say they won't vote for it in its current form. you've got issues with it as well. then you've got a china deal that is pending. tell us where you stand on the trade issues and whether or not that is the secret strong to keep things strong in economics. >> i think it's really important. i think the biggest cloud on the horizon is the possibility of a deteriorating trade situation, a spiraling trade war. i certainly hope we avoid that. on the new nafta agreement, for me the path forward is not obvious. speaker pelosi -- we've seen this movie before. we've had three times when a republican president has given speaker pelosi free trade agreements. she took them and put them in the bottom drawer of the desk and never did anything with them. so maybe this time is different but it's not obvious

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and i thought toomey did have some pretty in-depth ideas with a pretty good grasp of what was going onwatch these things and i tell you guys then we have these guys on or sometimes ahead of time but you never know who's the guy or woman who's paying attention to this stuff. it's -- there was a comment i think it was in the times or the journal this morning that so few senators yesterday asked about interest rates that powell at the very end had to volunteer something that he wanted to say. sometimes you get up there and the market is desperate to know what the chairman thinks about interest rates or the economy. and all they're interested in is scoring political points so you don't necessarily get what you're after sometimes in these hearings we'll be watching to see who's got financial acumen among the congressmen. >> i think becky made a good point and toomey i think his comments about inflation and it's perhaps changing the way you look at it, increasing it as the case may be was interesting. and he handled it nicely he didn't commit one way or another. >> but he knew his stuff i wa

eastern time cnbc will have live coverage once this event begins joining us now is pat toomey from theater this morning. i guess this is really your first crack at the fed chairman since this more dovish stance we've seen what questions do you have >> well, i think really two categories, becky, for me. one is i'm looking toward to continuing the discussion with the chairman about the fed's balance sheet. how quickly is the runoff going to proceed at what point does this runoff end? i think the chairman is likely to explain that the balance sheet is not going to go back to pre-crisis levels. even as a percentage of gdp. if just leave them with a bigger balance sheet than they otherwise would have had and those excess reserves are part of liquidity. i'm looking forward to hearing him walk us there that how do they control monetary policy in that environment i think he's going to say it's by changing the interest they pay on these excess reserves i hope we will find a way to run off the mortgage backed securities so a lot of discussion, i think, a rnd the competition and the size of the f

mike: senator pat toomey was interested in that and ideas of price level targeting, which posits the fed would let inflation run about 2% for a while to make up for the time it runs below 2%. to me does not like that. paolo said we have decided nothing and we are just looking at things as an option on the table. much of the question was on bank regulation. there was a new bill that makes changes to dodd-frank and they want to know how quickly the fed is implementing that. elizabeth warren was worried about bank mergers, especially bb&t and suntrust. she thinks the fed is a rubberstamp for bank mergers and they should be more careful. jay powell said they would all of the long do everything correctly to essentially make sure that they are not a rubberstamp. a lot of questions that were relatively noncontroversial. they dealt with regulation and the economy, but nothing that really made a lot of headlines. vonnie: michael mckee, thank you for that. the fed chair is before the house tomorrow. let's take a look at how markets are reacting. they really are not, but there is a lot to still

you have lamar alexander, susan collins, rand paul and pat toomey said they oppose the national emergencyeclaration. we'll see if they vote against it. he is starting out without the votes in the senate to stop it from passing it looks like. >> even if it gets to the house and the senate, the president can veto it. this is where it gets complicated. >> do you see -- it is interesting to have these parallel tracks. one thing people have been critical of is the ways in which we have seen more and more power move from congress to the executive. if you have a choice between having congress sort of rebuke the president or having the courts strike it down, which would you like to see? >> i would like to see congress do it. it's a co-equal branch of government. it's a balance but we have had the court to be a saving grace in recent times so it needs to be there. >> it also seems like it is likely that you will get one of these courts to issue a preliminary injunction. do you worry about that? it seems to me that it is important that you called to question will democrats still go forward no matte

pat toomey, who supported that bill back in 2013 with joe manchin, remains in support of it. no one thinks it's anywhere near the 60-vote threshold that's obviously required in the senate. but there are a number of republicans that supporters of this bill are targeting or hoping come along. it's far from clear there's going to be a vote in the senate. >> and this is the first gun legislation that the new democratic council is taking up. >> this is the first gun legislation that the house has dealt with since -- in years. probably nearly a decade, since democrats were last in the majority. there was no significant gun legislation of any kind brought up, or at least gun control legislation in the republican-controlled house during the eight-year republican majority. >> is there any sense it's part of the beginning effort by democrats for additional gun legislation? >> yeah, there is certainly some thoughts there could be more to come. there's a couple of areas where they're looking right now. one is the so-called red flag laws, which would give law enforcement and private parti

m, toomey., to start by complementing you and your colleagues, taking us a long way towards normalizing monetary policy. in my view, this was long overdue, but you have been me as a what strikes prudent, thoughtful, and data-informed process of getting back to normal. so, i want to thank you for that. a quick regulatory question. with theased interagency proposal released by the fed and other agencies, dealing with 2155 and the tailoring of capital liquidity requirements. think the commentary in january on this proposal, can you assure us this is a high-priority? mr. powell: it is a very high priority. 2155 is our highest priority. >> any timeframe that we can expect to finalize rules? mr. powell: there are a dozen rules we have comments on my now. i can come back to you. >> i am glad to hear it is a priority. i think you're heading in the right direction. unrelated, as you know, the private sector has set up a real-time payment system.. and i think it is very good for our economy. my understanding is all depository institutions have access to it on an equal footing, as they should. to

it seems the patience of specifically senator ron johnson, senator pat toomey, senator tom carper andator mark warner is wearing out about prolonged tariffs and trade. the senators thought the administration should do the deals with allies first and then it could be china versus the world. >> what we have seen is this white house pick fights with folks like harley davidson and justin trudeau rather than where some of the real challenges lie. >> particularly in terms of chinese technology policy. reporter: they highlighted the prolonged increased tariffs on china as well as steel and aluminum tariffs would cost the economy .37% of gdp at the end of the year. they urged the president to wrap up these trade deals as soon as possible. >> trade wars are very, very dangerous. tariffs as has been observed are taxes paid by consumers and when you raise the cost of imports, you impede trade, you raise costs for consumers. reporter: next week, according to the treasury secretary, there will be a delegation going to china in order to talk trade with china, continue those conversations that march

but individuals like pat toomey or marco rubio, we showed a lot of discontent i guess because they'reed about precedent. is the precedent consideration and concern a legitimate one? the fear of a republican that, hey, i could be president kamela harris or elizabeth warren that does this in a couple of years? >> i think it is a legitimate concern and one of the biproducts of this episode might be to impose on congress the determination to revise the underlying wall and make it more difficult for any president in the future to use the mechanism. one of the biggest area in the law is there no no criteria to constitute what creates an emergency. many believe there is no emergency at the southern border the law doesn't require the president to spell out the tomorrows and condition os tr criteria that he's relying on for his conclusions, so congress can simply change the make judgment or declare a future expire say in 30 days or 60 days unless they take action to expand the terms of the emergency. >> i'm glad that you raised the question of what is an emergency. here by way of example is th

i am joined by a republica is not afraid to challenge his president, pennsylvania senator pat toomey.then a deadline for u.s.-china trade talks is also fast approaching. we the ig into how that entirei continent reshape our world. we also ask the future of asia joins us. >>> plus -- ♪ wt a wonderful world >>e >>eeeeee stri -- sin

toomey, i'm not enthusiastic about it. blunt says, i have some concerns.e part, jennifer. we've heard from so many of these people many times, saying, this is my line, trump is crossing it, that's against the constitution, that's against the responsibilities and obligations that congress has, but somehow, trump gets them in the end. >> that's right. they are utterly spineless. they have decided for whatever reason that it's easier just to go along and keep their heads down. and as a result, they've lost all intellectual, moral authority. and this was precisely what tom and i predicted was going to happen if donald trump was elected, that he would slowly corrode and have the party degenerate on his watch, because he sucks people in to supporting this nonsense, he creates an atmosphere in which facts don't matter, he attacks the underpinnings of our democracy. as a result, the entire party is going down the tubes with him. and we're left -- >> and the conservative movement with it. >> correct. >> here's the interesting part about that, tom. in theory, donald

tell them that we couldn't pass that bill, that two a-rated nra legislator senators, manchin and toomey put together. and i remember one of the moms telling me-u know what? we know this wouldn't have saved our babies, but it would have reduced domestic hom sxooids would have reduced suicides and that's why we're here. and she told me the story of her son who's autistic whatsoever day would point to the picture of his teacher, his school aide, and then he would go to school because he had trouble talking. and as she said in the fire station, and one by one those kids came in, she knew she was never going to see her little boy again. and as she sat there sobbing she thought of everything about him but she also thought of that school aide because she knew that she would never leave his side. and when they found them shot multiple times dead, that teacher had her arms around that little boy. those parents had the courage to come to washington to advocate for something that wouldn't save their babies. we should join the majority of americans and actually many gun owners in having the courage

we will be reviewing legislation like pat toomey's and senator portman's that would change the dramatication of authority that a 1962 law gave under president to presidents that hasn't been used very much, but if the president has too much authority, it is congress' fault. -- you'vetion 232 been concerned that there's too much delegation to the president. i don't know how many books we have in the first place. getting it through the congress, we will have a bipartisan bill to get that done. we are going to get it done. david: thank you so much, chairman chuck grassley. alix: great interview. theresa may is speaking in u.k. parliament. goodays they are making progress on brexit negotiations. in case plan for a vote the deal fails. --the deal as well as delay that will happen on consecutive days. they will plan a vote on a no deal and a delay on consecutive days. still not a lot of clarity. still pushing the can down the road. you are seeing the reaction in the cable rate sort of permeating that. that's right around where we've been all session. eurosterling sitting around those 21 month

folks like marco rubio and pat toomey who are on the right but certainly not the people who usually throw sand in the gears on these sorts of things and folks like rand paul, mike lee, who tend to be the folks who through sand on the gear. >> are you saying there's a chance it won't pass? >> no, i want to make clear it will pass but it's notable even with the president's endorsement of this bill, they're losing a lot of republican votes on this. i think the fact that democratic presidential contenders are voting against it is not terribly surprising, that's the dynamic we've seen throughout. but this will get across the 60-vote threshold. it will pass the senate. i don't think there's a ghost of a chance mitch mcconnell would have brought it to the floor if he were concerned about that total number. it will be interesting to do the forensics later and figure out why all of the republicans decided to vote against it. the simple answer may be they just don't know everything in it. in 1,100 or so page bill is a large piece of under any circumstances, nonetheless 24 hours to review it. >> i s

a number of top republicans like toomey in senate of a mind not pass new nafta until the tariffs come. when there are happy steel cop, steelmaker, there are 10 unhappy steel importers and users out there. if we look at the template for the china talks, possibly a long-term scenario the current 10% tariff stays in place, subject to enforcement mechanism that essentially certifies china is agreeing to the letter and spirit of what comes out of these negotiations. connell: greg, always good to talk to you. greg ip from "the wall street journal" with us from washington. on the dow we're up 350 plus. on track for the eighth straight week of gains which would be the longest we've had since 2017. the president truthing market gains at his rose garden news conference. this is what he said. >> the market is getting close to the new highs he created. we have all the records. we have every record but we're getting close to the point where we create new records. so our country is doing very well economically. connell: bring in ed mills from raymond james. he is a policy analyst. i wonder, ed, how

chairman >> senator toomey. >> thank you, mr. chairman chairman powell, welcome back.to see you again. let me just start by once again complimenting you and your colleagues on taking us a long way towards normalizing monetary policy in my view, this was long overdue, but you have been pursuing what strikes me as a prudent, thoughtful and data informed process of getting back to normal. so i want to thank you for that. quick regulatory question, if i could. i was pleased with the interagency proposal released by the fed and the other agencies deal with 2155 and specifically the tailoring of capital and liquidity requirements and enhanced standards i think the comment period closed in january on this proposal can you assure us it's a high priority to finalize these rules? >> it's a very high priority 2155 implementation is probably our highest priority and we're pushing ahead. >> any idea of a time frame by which we could expect to see finalized rules there? >> i wouldn't want to put a date -- there's so many rules. a dozen rules we have comments on i can come back to yo

. >> senator toomey. >> thank you mr. chairman, welcome back, good to see you again. let me just start by once again complementing you and your colleagues on taking us a long way towards normalizing monetary policy. in my view, this was long overdue. but you have been pursuing, what strikes me as a prudent thoughtful and data informed process of getting back to normal. so i want to thank you for that. quick regulatory question, if i could. i was please with the interagency proposal that was released by the fed and the other agencies dealing with 2155 and specifically the tailoring of capital and liquidity and requirements enhance prudential standards. i think the comment period closed in january on this proposal. can you assure us it is a high priority to finalize these rules? >> it is a very high priority. 2155 implementation is probably our highest priority . >> and the idea of a timeframe by which we could expect to see a finalize rule there? >> i wouldn't want to put a date . there are a dozen rules we have comments on right now. i can come back to you . >> i'm gl

and gop senator pat toomey says democrats are still resisting it quote, i don't see this as a high priorityhink the path forward is all clear brady and grassley don't see a path forward without ending steel on aluminum tariffs. there are several trade fronts on which the white house is trying to get across the finish line >> and more importantly, these are some trade talks that the market has written off as a done deal not china necessarily, but the street is leaning towards that getting done the new nafta is something the street is saying it's a done deal move on. >> behind the scenes there's a lot of consternation, a lot of hand wringing about a lot of these potentially protectionist provisions the gop says, well, you know, those were put in there to win over democratic support. but the democrats actually say it didn't go far enough. so there seems to be some issue with finding some sort of bipartisan compromise on this deal it has a signature from the three countries. that's why the market believes it's a done deal but there could be some changes, some tweaks as the white house tries to