that shows efforts by the us federal reserve to raise interest rates as the us economy continues to grow could finally be having the intended effect. chief investment officer... allsorts of data, today us retail sales will give us an indication. yesterday, really sank when inflation report. lower—than—expected wage growth. —— sanguine inflation report. some quite good news from the us. now, we have trade friction, donald trump issues making markets volatile. the revolving door at the white house. the secretary of state sacking by a tweet was shocking. we knew they didn't get on. the pennsylvania

have jerome powell's first meeting as governor of the us federal reserve. that takes place tomorrow and wednesday. and we have the bank of england, so there is quite a bit going on with central banks. but also in terms of how markets did today, you can see that is how things ended on friday. this is australia and hong kong, but it is important to note that japan closed down by almost 1% at the end of today's trade. a lot of the losers today's trade. a lot of the losers today our suppliers to apple. for example, samsung shares were hit. these companies are the companies which make the displays for apple products, the iphone and the ipad. that is huge in terms of revenues, but could be lost if apple starts to make their own screens. let's look at europe quickly so you have a sense of how the european day is going. iam sense of how the european day is going. i am hoping we will get the european numbers. we are trying to change them, but we can't, so i will hand over to jamie.

the us federal reserve has once again raised short term interest rates the quarter point uptick is the fourth such rise in the span of a year an indication of the recent economic growth in the us is expected to continue. the latest meeting of fed governors is the first under new chairman jerome powell who was nominated by trump last year. members projected they would raise rates twice more this year in an effort to control inflation. africa offers a potentially gigantic market of up to one point two billion people many of them desperately poor it's hoped a new free trade agreement signed this week will tackle poverty there their promise of free trade and free movement is prosperity for africa because we are proud of the production of goods and services that. enough. by boosting entrapment in trade the forty four participating countries hope to reduce their dependence on raw materials exports right now africa's countries only do about sixteen percent of their total trade with each other the new agreement is expected to come into effect in one hundred eighty days time though it first has

this tells us the federal reserve is committed to the path that has been laid out in yemen. the gradual rate increases will reduce the balance sheet. it is a very cautious approach. yvonne: there's someone in the camp that thinks narrow trade deficits could favor dollar yen strength. your physical stimulus, and what does it all started matter -- when does it also to matter? mark: i was challenged last year, and earlier this year, but i have levels. euro is a bunch of technical areas coming in around there. levels, through these my divergent stories over. >> we leave it there, mark. this is bloomberg.

the us federal reserve ends it two—day meeting about interest rates today.w many rate increases it may roll out in 2018. the central bank is expected to produce the first of three or four rate rises today as the economy strengthens and inflation rises. toyota has suspended us tests of driverless cars on public roads following a fatal accident in arizona involving one of uber technologies' self—driving vehicles. toyota said it was concerned about the "emotional effect" the incident might have on its test drivers. a quick look at financial markets. you can see hong kong is up strongly. markets recovering from the losses we have seen but facebook shares still being hit hard. we had the opec led alliance of major oil producers accelerating the timeline for curbing a worldwide supply glut of oil so the price of oil headed up on the back of that news. we will see you in a moment. we will review some of the newspaper stories in a moment. a group of mps is warning of government against complacency when it comes to security co—operation with the eu after brexit. the

now let's brief you some other business stories: the us federal reserve has raised its benchmark interest5%, to between 1.5% and 1.75%, citing a strengthened economic outlook. it was the first meeting in charge for new fed chairjerome powell, who took over from janet yellen last month. he also signalled at least two more rate hikes this year, but sounded a warning about rising trade tensions. tesla shareholders have approved a $2.6 billion pay dealfor boss elon musk, believed to be the biggest share—based deal in us corporate history. mr musk will only get the shares if the electric carmaker hits certain targets, including sales and share price. the vote was seen as a key test of support for his leadership at the loss—making firm, which is struggling to increase production. and now, what is trending in the business news this morning? from cnbc, eu reveals a digital tax plan that could penalize google, amazon and facebook. it says, according to data from the european commission, digital companies pay tax of about 9.5%, compared to 23.2% for traditional businesses. from wired, the people ha

today was decision day for this man, the new chair of the us federal reserve, which of course is the bank and he delivered what was widely expected. jerome powell announced his first interest rate rise, an increase of 0.24% to 1.75% from 1.596. increase of 0.24% to 1.75% from 1.5%. let's increase of 0.24% to 1.75% from 1.5%. let‘s look at the market reaction. wall street shares have ended the day slightly lower after a volatile session. asia has opened today, japan has reopened after a public holiday, we are seeing some rise there. in the currency markets, we‘re seeing the dollar seeing the biggest one—day loss in two months against a basket of currencies. when announcing the hike, the new fed chair sounded very optimistic about the state of the us economy. indeed the economic outlook has strengthened in recent months, several factors are supporting the outlook, fiscal policy has become more stimulative, ongoing job gains are boosting incomes and confidence. foreign growth is on a good trajectory and overall financial conditions remain accommodative. as our business reporter in washi

may happen is going to start happening i don't know pretty pretty soon here i mean the the us federal reserve looks like they're going to go ahead and boost interest rates not just now and in march but in the next several months and the e.c.b. looks like sometime later this year so we could be well down that path hey steve anybody wants to read your book can we avoid another financial crisis they should do so it's very interesting but you've also written a comic book about economics as well tell us about that a little bit all that that's what he said on the senate and more and less is not a little. taking the calling out of economics and in a funny sort of way i was had to fly out to give a conference speech and in kent kind of a couple of years ago and i was reading larry summers that's larry on the cover there and he invented this concert be called the feria which stands for the full employment real interest right and this has never been in uses a term in economics have a patrol and this one paper it was there twenty one times and i was reading this thing in thinking a lot of bollix it was

that shows efforts by the us federal reserve to raise interest rates as the us economy continues to growed effect. chief investment officer... allsorts of data, today us retail sales will give us an indication. yesterday, really sank when inflation report. lower—than—expected wage growth. —— sanguine inflation report. some quite good news from the us. now, we have trade friction, donald trump issues making markets volatile. the revolving door at the white house. the secretary of state sacking by a tweet was shocking. we knew they didn't get on. the pennsylvania result, the democrat winning, a strong republican seat in the run—up to the midterms. mark its time to weigh up what this means? to the midterms. mark its time to weigh up what this mean57m to the midterms. mark its time to weigh up what this means? it comes down to what will happen with policy. rex was a moderate voice. now, more hardline. strongeragainst iran, for instance, trade protectionism stronger stance. potential tariffs on chinese imports, consumer goods, for example. big news and that is why asia was unsettled. so much

i will be back with business news, and the new us federal reserve chairman has announced his first interestand before we go, we will look at these pictures. as the pope enjoyed a hearty chuckle during a windy day at the vatican. a cheeky wind took off with the pontiff's zucchetto. he'd previously been battling with the breeze to keep the cap on, but gave up as he spoke to the vatican crowd, joking that it was now behind him. that's all for now. stay with bbc world news. hello. temperatures have been slowly recovering over the last couple of days after that mini beast from the east brought us that disrupted snowy. thursday, a more mild start. good spells of sunshine. the atla ntic good spells of sunshine. the atlantic has come back to life, feeding in cloud and mild air. you can see the air mass, the orange, moving in on thursday. more fresh for friday. my old air never far away. sunshine on the weekend and feeling pleasant. —— mild. early thursday. damp weather down the east of the country affecting east anglia and the south—east. elsewhere, largely dry. variable cloud. more of a breeze fur

the new us federal reserve chairman announces his first interest rate rise. go, let's take a look at these pictures. —— that's all for now. stay with bbc world news. temperatures have been slowly recovering over the last couple of days after that mini beast from the east brought us that disruptive snow. in fact, as we head into thursday, a more mild start and a mild afternoon. good spells of sunshine. feeling quite springlike. the atlantic has come back to life, feeding in cloud and mild air. you can see the air mass chart here, the orange colours moving in on thursday. something more fresh pushing in for the end of the week, for friday. mild air neverfar away. sunshine on the weekend and feeling pleasant. as we head into the overnight period, into early thursday, damp weather down the east of the country affecting east anglia and the south—east. elsewhere, largely dry. variable amounts of cloud. a bit more of a breeze further west. but it's going to be a much milder start on thursday. most places, 4—7 degrees. just oone or two pockets of frost in some very s

on friday, investors will be eyeing a raft of economic data to better gauge what the us federal reserveit meets next week. housing data released by the census bureau is expected to show that new construction slowed in february, partially as a result of poor weather here in the north—east. two key measures of us manufacturing activity will also be released. a miss in any of these figures could worry america's central bankers, especially after retail sales and inflation data came in lower than expected this week. the expectation is that the fed will continue to slowly raise us interest rates. but in order to do that, it will need the american economy to be growing at a healthy pace. joining us is simon derrick, chief markets strategist, bank of new york mellon. in terms of occurrences, we have this trade war, a great euphemism, for general chaos in the trade sphere. what effect is it having on currencies generally? i'm thinking about the three main ones. currencies generally? i'm thinking about the three main oneslj currencies generally? i'm thinking about the three main ones. i think the

may happen is going to start happening i don't know pretty pretty soon here i mean the the us federal reserve looks like they're going to go ahead and boost interest rates not just now in march but in the next several months and the e.c.b. looks like sometime later this year so we could be well down that path hey steve anybody wants to read your book can we avoid another financial crisis i should do so it's very interesting but you've also written a comic book about economics as well tell us about that a little bit of that that's an economic. and well and less about idle. taking the calling out of economics and in a funny sort of way i was had to fly out to give a conference speech in in kent kind of a couple of years ago and i was reading larry summers that's larry on the cover there and he invented this concert be called the feria which stands for the full employment real interest right and this is never beaned uses a term in economics have a patrol and it's one paper it was there twenty one times and i was reading this thing in flight thinking a lot of bollix it was frankly and thinking it

may happen is going to start happening i don't know pretty pretty soon here i mean the the us federal reserve looks like they're going to go ahead and boost interest rates not just now and in march but in the next several months and the e.c.b. looks like sometime later this year so we could be well down that path hey steve anybody wants to read your book can we avoid another financial crisis they should do so it's very interesting but you've also written a comic book about economics as well tell us about that a little bit all that that's what he said. and more and less is not idle. taking the calling out of economics and in a funny sort of way i was had to fly out to give a conference speech and in kent kind of a couple of years ago and i was reading larry summers that's larry on the cover there and he invented this concert be called the feria which stands for the full employment real interest right and this is never being used as a term in economics have a full and this one paper it was that twenty one times and i was reading this thing in thinking a lot of bollix it was frankly and thinking

independent from the government or the chinese communist party like many central banks such as the us federal reserve the european central bank or the bank of england. and mexico's former first lady has thrown her hat into the presidential ring lawyer margarita zavala the wife of former president and ricky calderon was certified as a candidate on friday after electoral forty says she's filed the needed number of signatures savalas husband was selected as the nominee of the conservative national action party or pan but the follow will run as an independent challenging the pan's nominee ricardo in iowa who is currently running second in polls behind leftists and race manual lopez obrador are. as most of us know the trumpet ministration released a budget plan earlier in the week it calls for an increase in defense spending of one hundred ninety five billion with a b. dollars over the next two years how are defense dollars being spent in the united states we turn to former senior pentagon official michael maloof for the answers michael thank you for being here where does the billions and billions and tri

all attention on the first meeting, the federal reserve, give us your take on what he had to say alongside move of rates upwards? they raised interest rates, i think it was a very positive meeting. he focused on the fa ct positive meeting. he focused on the fact us data is strong. inflation is 0k. the fact us data is strong. inflation is ok. the passes for gradual rate

us a federal reserve chairman jerome powell says america's current fiscal path is unsustainable he searched congress to act fast to solve the problem of rising national debt but might argue that it's all a matter of spending priorities. is the biggest economy in the world and boiling faster than anyone else is and things will only get better at least that's what the new federal reserve chairman says the u.s. economy grew at a solid pace over the second half of two thousand and seventeen into this year it was a good year by any standard for the u.s. economy only the same could be said about the country's net loss peaking at a gargantuan one point two trillion dollars. those one point two trillion aboard has a shopping list of things that goes away. we will build. person trump still desperate for his beloved wool is currently seeking congress' approval for its eighteen billion dollar cost well with that lost money the donald could have delighted in six hundred and sixty seven. there are millions of kids in this country today because of the economic circumstances never believe they're going to

were listening very closely at the words of the federal reserve yes caught our financial correspondent is on wall street and has been following the story for us yes hi it's good to see you well we saw the announcement by the federal reserve and mixed reactions on wall street who could say yeah it was an up and down session pretty wild what we saw here especially after the fed meeting it is not unusual that on the day of the fed meeting itself traders need some time to figure out what actually has changed and what not so we might get a better picture in thursday's trading but what is showing from this fed meeting that the federal reserve might become a bit more aggressive a few more rate hikes was in the next two years and then expected that is in general good news for banks so they profit from higher rates but on the other side especially if you look at capital intensive industries like some technology companies for them money becomes more expensive and therefore also their investments and so we especially saw technology companies getting under some pressure here in the late hours of trading and at the end of the day we finished in negative t

how this might impact the ability of the federal reserve to properly federal reserve to properly conduct its obligation under the community reinvestment act. we used that data in the banks we supervise and a smaller group. in addition to that, sorry i lost my train of thought. it takes the base of the collection and significantly increased that to my understanding is what's being looked at in the bill is to create a broad exemption for just from the dodd frank addition. we get almost everything we need from the historical data and we will continue to work on that. >> that's my concern is the more data the better. you are creating the unit with your decision-making and my understanding is that even if it is used in a supervisory exam seems to exclude the relative data points under 1 million they bayer designated small business loans even if they were not administered to the small business there is no analysis made whatsoever whether lending is occurring in communities of color, despite easy accessible data as the home mortgage disclosure act. so has the fed considered broadening the criteria in its supervisory exams, and what factors do you think w

all attention on the first meeting, the federal reserve, give us your take on what he had to say alongsideterest rates, i think it was a very positive meeting. he focused on the fa ct positive meeting. he focused on the fact us data is strong. inflation is 0k. the fact us data is strong. inflation is ok. the passes for gradual rate rises. there was nothing that put the fear into financial markets from the fear into financial markets from the point of view of what he was saying? he reassured financial markets. steady pair of hands. looking ahead to the uk. are you in, by the way? the squeaky was the chair! we will be looking at the decision by the bank of england on interest rates later, generally, people not expecting a rate rise before may. generally nothing before may that a rate rise this year. and give us your interpretation on all the data we have had this week? inflation is going down and we have the employment number going up and wage growth not doing much at all? give us growth not doing much at all? give us your take on what that means. the data is quite peculiar in the uk. inflat

people like dan used to be a governor at the federal reserve in charge of regulation. paulio volcker, a federal resere chair selected by republican and democratic president. a a republican, sheila bair, president bush's nominee to the fdic, a goodho analysis of what actually happened when ten years ago this, wall street almost collapsedis our economy and this body, his body seemsnc to the experienced sort of the collective amnesia. ten years ago look what happened to the economy in today were given reliefis to the large, may of the largest banks in this country. relief that these things onn the stress test, a weaker stress test, , a less regular stress tt which will mean many of the larger banks simply won't be under the intense examination that we done in the past. what that means is those banks are more likely to jeopardize the safety and soundness of the banking system. again, we know what happened ten years ago when we had to bail them out. mr. president, is a "washington post" article that came out today, the headlight is sent banking bill likely to boost chances

and i have here over to have here now with a much anticipated decision by the federal reserve in the us that's right level one that didn't surprise us at least not this time policymakers at the federal reserve have once again raised short term interest rates the quarter point uptick is the fourth such rise in the span of a year an indication that the reason to konami growth in the u.s. is expected to continue this meeting affect governors is the first under new chairman jerome powell was nominated by donald trump last year said members projected they would raise rates twice more this year in an effort to control growth and as usual wall street investors were listening very closely and so was our financial correspondent on wall street hence cause it was right there good to see you yes well we know it now and you're a tiger in the u.s. and no surprises there. at least the headline number did not surprise us that said it's been the six rate increases since december of twenty fifteen but at least a verbal e. the federal reserve becomes a bit more aggressive stay on hiring the outlook for us

it's a line in the russian military doctrine that is familiar to some of us very well and quoted which is the russian federation reserve the right for the first use of nuclear weapons even in a conventional conflict when the russian state is at stake. that is blackmail. >> it is in the big question on everybody's mind is whether or not putin is serious and whether or not the russians would actually use nuclear weapons. i know there are different views on this but i think the risk that a truly what is quite significant and i think that's something we don't like to think about and we don't like to come to terms with. we are very complacent with the idea that the last time the world use nuclear weapons was a very long time ago and we lived in this peaceful standoff for a very long time. my three years on the armed services committee the single most writing thing i have ever done was get briefed on our nuclear command and control architecture systems policies. they ran us through an exercise. we got down and put on the headsets and we went through this exercise where our united states military prep just how they execute a

the us central bank, the federal reserve, is raising its benchmark interest rate because of the strand by bank had decided to raise the rate to 0.25% -- by 0.25%. it said it expected to raise rates twice more this year. the suspects linked to a series of deadly package bombs in austin, texas, mark anthony conditt, has died. he blew up an explosive as police closed in on him. two people we re police closed in on him. two people were killed in six separate attacks. police are working to remove more devices from the suspect‘s home. we will bejoining devices from the suspect‘s home. we will be joining world news america in a few minutes, but first tomasz schafernaker has the weather. you will notice how much milder thursday will feel compared to this morning, there was a touch of frost. thursday morning will be a lot milder across the uk. clouds are streaming in from the south—west, giving an indication of where the weather is currently coming from. a much milder source. through the evening and tonight, very light south—westerly winds, pushing and a weather front which will bring some rain

to welcome our radio audience and our tv audience as we speak to the president of the federal reserve bank, joining usgood to be here. >> everyone has focused to see on if wages will continue to accelerate. we did not get that. but a big gain in payroll. what signal for the economy do you take from this? >> i thought it was a good report. we have had strong payroll growth for many years now. the market is vibrant. the increase in the labor force participation rate is a good sign. more people are going into the workforce. unemployment has continued to stay at that rate. that ends up being a good sign. you mentioned wage growth was on the weak side. this is one of those interesting developments. even though the job market is strong we have not seen strong wage growth. i'm looking forward to stronger wage growth in the future, all of these things leading to a stronger economy and line with our 2% inflation objective. you tilt moreo towards? i think you have mentioned recently it could be 3%. you keep saying inflation is below target. jobs report like this, does charlie evans say i'm getting more on board

us really well. putin quoted it. the russian federation reserves the right to the first use of nuclear weapons even in a conventional conflict where the very existence of the russian state is at stake. is that -- that's that black mail, isn't it? >> it is, and i think the big question on everyone's mind is whether or not putin is sincere. whether or not the russians would actually use nuclear weapons and i know there's different views on this. but, i think the risk that he truly would is quite significant. and i think that is something that we don't like to think about. we don't like to come to terms with. we seem very complacent with the idea that the last time that the world used nuclear weapons was a very, very, very long time ago. and we have lived in a peaceful standoff for a very, very, very long time. but in my three years on the armed services committee, the single most frightening thing that i have ever done, was get briefed on our nuclear command and control architecture, systems, policies and everything. and they ran us through an exerci

trump has clearly had so much pressure from within his own country for trouble from the federal reserve banks and the us economy for another garnish of your chaffed. exports around four billion euros worth of products to the u.s. every year industrial facilities machines and steel high quality high tech steel. the german state association has welcomed the agreement with the u.s. government but it says the e.u. is far from being in the clear the u.s. will still be sealed off for many of the steel exporting nations from eastern europe and asia their exports may well end up on e.u. markets. we believe that that could mean around thirteen million tons is being diverted to a. form that's an impulse. increase of fourteen percent which would completely swamp european steel market him some place considerable pressure on companies to adapt. that donald trump steel dispute has changed the way many workers at towson crip see the us and has done a lot of damage at least as far as trust is concerned there will be more on the issue now with amrita thank you very much helena as we heard earlier trump assemble really e

this tells us the federal reserve is committed to the path that has been laid out in yemen.creases will reduce the balance sheet. it is a very cautious approach. yvonne: there's someone in the camp that thinks narrow trade deficits could favor dollar yen strength. your physical stimulus, and what does it all started matter -- when does it also to matter? mark: i was challenged last year, and earlier this year, but i have levels. euro is a bunch of technical areas coming in around there. levels, through these my divergent stories over. >> we leave it there, mark. this is bloomberg. >> the beautiful city outside this morning. we are a half an hour from the open of trading. the markets are not looking pretty, betty, as we see asian markets reeling on trouble's tariffs. betty: worried about the ripple effects of that. you're watching daybreak asia. let's get to the first word news of paul allen. president trump has taken his boldest step to level that economic playing field with china ordering tariffs on a range of products in a move set to escalate tensions between the world's

banks with more than $250 billion, a fivefold increase, must be subject to oversight by the us federal reservee how it goes when it gets the house later, in a month. we have just had breaking news. the us treasury department has just placed new sanctions against russian individuals, is that right? right, this is breaking news. just coming out in the past ten minutes. the us treasury department has sanctioned 19 individuals and five entities. they cited meddling in 2016 us presidential election and the cyber security attack that was attributed to russian agents earlier this year. these are the strongest sanctions yet for the trump administration on russia. one of the organisations they placed a sanction on is the internet research agency which is the group that many us security officials say was responsible for placing some of those fake news adverts which facebook and twitter have been struggling to justify. we will see how this plays out throughout the day. thanks very much. from the stock exchange. time for a look at the weather. many have seen great conditions through the day but the sun ca

to to the us economg action was it has recovered slightly from its earlier losses. new data from the federal reserve indicated a strengthening of the us labor market as well as its celebrating wage growth. thousands rebounding slightly after losing about three hundred and fifty points earlier on. major european indices managed to shrug off those concerns for a second day in a row dax gaining one percent. chairs the carmaker hello close at five and a half percent. company denied a report that the french government is in talks to sell its majority stake to partner me so. the european union has rejected british rehearsals for a post brexit trade deal and addressed negotiating paper ahead of the next round of trade talks. london has been pushing for terms that would allow uk based financial institutions to continue to do business with in europe. brussels has dismissed as a cherry picking approach that is for it unacceptable. and lotteries may vowed to make a success of brexit you counsel present all to say. that he doesn't necessarily share that aim. i agreement will not to make trade between the uk fan

federal reserve's support of the economy, following the financial crisis, undermine the federal reserve's focus on employment, and eliminate its independence from the broken congressional appropriations process. the majority is also using the federal reserve as a piggy bank to pay for the cost of legislation like the latest short-term spending measure and now hr-4296, which will be on the floor today. these republican efforts to undermine the fed diminish its ability to support american workers if we face another crisis. chairman powell, i look forward to hearing your views on the economy and the path to sustaining the economic progress that was set in motion during the obama administration. i yield back the balance of my time. >> gentlelady yields back. the chair now recognizes the gentleman from kentucky, mr. bar, the chairman of the monetary policy and trade subcommittee for 1.5 minutes. >> welcome, chairman powell. since the 2007 and 2009 financial crisis, the federal reserve's distortionary balance sheet has exploded from just under $1 trillion to more than $4.5 trillion, injecting new and unknown risks into the economy. clearly, whether you believe this unprecedented government intervention into our economy had m

federal reserve. jens korte is on wall street and has been following the story for us. jens, it is good to see you. aw the announcement by the federal reserve and mixed reactions on wall street, we could say. jens: yeah, it was an up-and-down session, especially after the fed's meeting. it is not unusual that on the day of the fed meeting itself, traders need some time to figure out what actually has changed and what has not, so we might get a better picture in thursday's trading. but what is showing from this fed meeting is that the federal reserve might become a few more aggressive, more rate hikes in the next two years than expected. this is in general good news from -- for banks. but on the other side, especially if you look at some technology companies, for them, money becomes more expensive and therefore also their investments. so we especially saw technology companies getting under some pressure here in the late hours of trading and at the end of the day we finished in negative territory on wall street. javier: jens, let's focus on jerome powell. we know this was his first such press conferen

federal reserve -- that the federal reserve may maintain from 7.-- $7.5 billion to $6.285 billion. the federal reserve surplus funds have been used in the past to pay for bipartisan legislation emanating from committees that do not have jurisdiction over the federal reserve. unlike those past instances, these funds will be used to offset costs of legislation emanating from the banking committee. in order to provide meaningful relief for consumers, community banks, credit unions, mid-size banks, and regional banks, i urge my colleagues to waive this point of order. the presiding officer: the senator from vermont. mr. sanders: i would ask my colleagues to support this point of order, not only from a deficit perspective but to tell the republican leadership here in congress that we want a serious debate on the serious financial issues facing the american people, that we want the ability to bring forth amendments, not just my amendments, a lot of good amendments on both sides, that at this particular moment rather than just deregulating some of the largest banks in america, we need to protect consumers. we need to protect ordinary am

also, on wednesday, we saw the us central bank, the federal reserve , the us central bank, the federalas well as raising the base rate, the fed also flagged two more increases were likely this year. i have to say i am kept up at night by interest rates. they do make me excited. i was at the press co nfe re nce make me excited. i was at the press conference yesterday. one of the most interesting games with the federal reserve raised its benchmark interest rate but the most interesting thing was the dots part which indicates what the members of the third's per market committee is thinking in terms of increases in the future. we saw that eight members thought there would be three rate increases this year and seven thought there would be four rate increases. quite a bit of division here in america. the question for investors is, how fast is the us economy growing and what does the fed think it needs to do in order to keep inflation in check? the fed needs to make sure it acts quick enough so that inflation does not go out of control. i do want to mention one other risk. the new fed chair h

rates here in the us are rising due to the fact that the federal reserve has been increasing intereste us economy continues to grow. last week the us mortgage giants freddie mac said that the average rate on a 30 year fixed rate mac said that the average rate on a 30 yearfixed rate mortgage has written 6.5% since january. whilst thatis written 6.5% since january. whilst that is good news for now, rising home prices and rising mortgages could eventually hurt would—be home—buyers. could eventually hurt would—be home-buyers. that is kim, part of oui’ home-buyers. that is kim, part of our team home-buyers. that is kim, part of ourteam in new home-buyers. that is kim, part of our team in new york. joining us is mike amey, managing director and portfolio manager at pimco. a big bounce back, but the ftse has been hit hard. yes, it is down seven 01’ been hit hard. yes, it is down seven or 8% of the year, so there is quite a big move between the relative markets. quite a lot of this i think is related to the currency, because sterling as you know has been doing pretty well, 1.42 against the do

off their worst month since january of '16 amid heightened volatility joining us to talk about that, former federal reservean greenspan is with us. dr. greenspan, always great to have you welcome back >> thank you very much delighted to be with you >> i wonder if you remember your first humphrey hawkins and if you think powell has anything to walk back from tuesday >> well, it's not only the first. it's every one thereafter. it's an interesting issue. a small minority, maybe a moderate minority, of the congressmen and representatives are truly interested in what the facts are that they don't know but there is a significant number of people who are trying to find ways to make themselves look good to their constituents back home. now, jay powell has been around quite a long while he knows his way around this particular problem, and i suspect he'll do very well as he did the last time and will continue to do so. >> he's going to come in this morning armed with some fresh data that we've now seen, namely a core pce from this morning as rick just brought us, some of these ism numbers. a 6 1/2 year high on price