--share yellen, in arguably yellen, you have a good track record. car sales are up, home sales are up. the constant, steady drumbeat of private-sector job creation has been accumulated. yet i cannot shake the feeling that it is way too premature to put out the mission accomplished barrier on the aircraft carrier. i think most americans agree i also think that the reason for that is the absence of wage growth. i think we are picking up or down 2%. i will do it first. frankly, chair, that's right that's barely diminished compared to the last recovery area my question is very straightforward. when does america get a pay raise? hon. yellen: we are beginning to see if slightly faster wage growth based on hourly earnings over the last 12 that's 2.5% up the low-level that it was. readings on comp nation, hourly compensation, they are very noisy. it's hard to know, but it looks like we are seeing faster wage growth. other measures, other wage indicators like the wage tracker do show an improvement wage growth. that as the labor market continues to improve i

yellen: i agree with that. we want to tailor our regulation so that they are appropriate to the risks. we are likely to make changes to the stress testing regime that would reduce burden on some of the smaller banking organizations that are subject to the process. rep. westmoreland: thank you ., chair: the chernow mechanize is the gentleman from georgia, mr.' scott. when you were here the last time, i raised the issue of high unemployment among african-americans. it is absolutely staggering. in some of our communities, particularly with african-american males between the ages of 18 and 37, it is over 22%. in some communities, it is as high as 50%, which leads to all kinds of problems. the crime problem, but more importantly, the breakdown in the african-american family, because these young men who are aged 18 to 37, that is the childbearing age. we have got to look at this as a national crisis. i asked you to do that and you scott, -- you said, mr. i do not have the tools to do what you are asking. but i say to

janet yellen: yes. as i said earlier, i don't see signs of extreme threats to financial stability at this time. this is something that we monitor very closely. it is something that can happen in a low interest rate environment. i do not think i see any broad-based evidence of those financial stability concerns, but it is something that is possible. senator reed: i've less than a minute, but with respect to cyber security, we had a discussion last time we were here. it is an increasing problem. reports thateserve you have been breached in some respects. just getting to the point, do you have the authority to require companies to put people on their boards that have cyber security expertise and also to publicly disclose what their cyber security general parameters are or something to indicate to the public that they are taking this seriously? janet yellen: it is a focus of our supervision. we do have standards that we expect financial institutions to meet and just what is expected depends on the complexit

chair yellen: thank you. lby, rankingmie member brown, a number of members of the committee -- and other members of committee, in my remarks today i will briefly discuss the current economic situation and outlook before turning to monetary policy. since my last appearance before this committee in february, the economy has made further progress toward the federal reserve objective of maximal employment -- of maximum employment. while inflation has continued to run below are 2% objective the federal open market committee expects inflation to rise to that level over the medium-term. the pace of improvement in the labor market appears to have slowed more recently, suggesting that our cautious approach to adjusting an attorney policy remains appropriate. in the labor market, the cumulative increase in jobs since its trough in early 2010 has topped 14 million. the unemployment rate has fallen more than five percentage points from its peak. as we detail in the monetary policy report, jobless rates have declined for

what'd you think of yellen's remarks?conomy is in pretty good condition, that basically the positives outweigh the negatives. she's saying that further rate hikes are likely to be appropriate and further gradual increases of the fed funds rate is what we can expect. and that's the question, the pace of it. but she basically said, as peter barnes has been reporting, don't attach too much sentence to that bad jobs -- significance to that bad jobs friday. the number of positives outraying the negatives. she's saying the number of job openings, that rate is at a record high and people are quitting voluntarily, and that's a good sign. so she's saying average hourly earnings are up 2.5% over the last year, that basically the gas prices coming down has caused good retail spending and spending on cars as well, all signs that janet yellen and the fed could raise rates. we don't know how many times this year. it could be one and done, we just don't know. connell: and i should point out the stock market after initially showing no re

and thank you chair yellen. we talked about corporate offshore and and the devastating my homet has had in state of indiana and manufacturing towns across the country. the frustration remains. the decline in manufacturing employment is one of the factors that has led to a shrinking middle class. we have two economies in this country. the overall economy might be doing well enough and the will be richer than ever. middle and working class families are not feeling the recovery. we have been stagnant for years. a recent pew report that 1971 each decade has ended with a smaller share of adults living with middle income households. what is the state of the economy for working families? >> will i would agree with you that for the decades now as we were just discussing, there has been downward pressure on the incomes of less skilled individuals. and the kinds of jobs that once upon a time were pretty readily available say, for high school educated man in manufacturing have gradually diminished. there has been a long-te

the most important speech of the year for janet yellen. 12:00 special coverage with janet yellen, her philadelphia. before that, a conversation with daniel lockhart. i will call him a centrist, and always interesting guy. more interesting after what we saw on friday. if we could explain to our global audience what it was like an 8:31 we saw those numbers, it was just extraordinary. a the numbers were certainly shock. since we have seen yields and futures price the fed out until december -- tom: you go to december? >> that is what the market thinks. we are to getting pushback from bankers already. tom: she is a hawk? >> she is a hot, and he is -- hawk, and he is a dove. they're basically saying the same thing that a rate increase is still on the table. the question is when. that is something we will put to dennis lockhart when we talked to him. a lot depends on whether you think the friday number was a blip. there are anomalies telling whether it was a blitz or not. all of those people left the labor force. take a look at the number of people who are discouraged, no longer looking for

janet yellen: well, the upcoming u.k. decision on whether or not to leave the european union is it something we discussed and i think it is fair to say it was one of the factors that factored into today's decisions. clearly, this is a very important decision for the united kingdom and for europe. it is a decision that could have consequences for economic and financial conditions in global financial markets. if it does so, it could have consequences in turn for the u.s. economic outlook that would be a factor in deciding on the appropriate path of policy.s so, it is certainly one of the uncertainties we have discussed and have factored into today's decision. >> thank you. the fed's outlook for rates has come down sharply for 2018, especially, but he has been -- it has been coming down gradually over time. almost a full percentage point compared to a year ago and yet, the gdp outlook remains the same. what has happened in the past quarter to the committee's outlook for rates to be brought down so much in 2018 and further fr

yellen live at 10:00 a.m.kets opened and we will go to julie hyman to find that would is going on. julie: there we go. let's take a look at what is going on. not much movement now because investments are waiting for janet yellen, waiting for brexrow, waitg for the votei, i should say two days from now. in advance of all of that, not seeing much movement in terms of direction with the stock markett with the exception of the nasdaq up about .25 of one percent. not much decisive action. if you take a look at the futures over the two-day period , we will show trajectory. we had a strong rally in u.s. stocks and a late save, and then we have been climbing back to some degree but fading into the open. there is just not a lot of conviction it seems in buying stocks over the past several days with all of the events banking over investors heads. take a look at the bloomberg care for what is moving. here you have the imap, so energy stocks trading lower and utilities are under pressure. tech and consumer state and healt

following her testimony they will be questioning janet yellen. we will bring you the questioning live as a gets underway. we also have breaking numbers on existing home sales in may. julie: that number just coming out. million is the annual piece of existing home sales just shy of what analysts had been anticipating. month was revised lower to a gain of 1.3%. the housing market still in focus for invest years. it looks like the absolute number is still at the highest in february of 2007. interesting that we are getting this number. janet yellen's testimony continuing for the second day. we are not seeing much movement in stocks today. it is a mixed picture with the nasdaq trading slightly lower even as the other major averages are on the rise. to find outiting the results of the u.k. vote tomorrow, which we will be reacting to on friday. we have financials in terms of the most heavily weighted groups. materials and on the bottom energy and utility shares pulling back. hp andto point out fedex. profitame out with a that was in line with analyst pr

>> i think what we're looking for here is which janet yellen was going to show up, the janet yellen fromh aware of the weak job numbers but overall optimistic on the outlook long-term that suggested perhaps rates could rise, or the janet yellen from the june 15th press conference that kind of embraced this idea of secular stagnation that rates would remain low and that was pessimistic that the economy would bounce back. i'm hearing more the janet yellen of june 6th, the one that says long-term these headwinds will abate. i haven't read the full testimony, simon, but it sounds more and more like she's back to june 6th kind of cautiously optimistic for the future. and we didn't hear, simon, that optimism on june 15th almost at all. >> yes, even the labor market described as transitory, which i guess is important. >> sounding like she was really embracing the larry somers argument when i asked her this question, the outlook and she said these headwinds they may be permanent, and that's the reason why the fed stepped down and lowered ilts rates or its outlook for rates in the coming years. t

yellen said the economic outlook is highly uncertain. according to four key areas of concern including resilience of domestic demand, whether or not consumers are spending. foreign economic weakness, with particular concern about repercussions of the uk leaving the european union, brexit. or productivity growth, yellen saying she was cautiously optimistic about that. as well as inflation. she offered a pretty upbeat outlook for each area of concern. overall yellen confirmed a june rate hike is unlikely, probably july as well, barring a strong bounceback in jobs. it was career before the fed hikes again the fed chair wants more certainty that her forecast for a rebound is the right forecast. for "nightly business report," i'm steve >>> former treasury secretary larry summers says electing donald trump as president would plunge the u.s. and the world into recession. in an op ed in today's "washington post," summers says trump's unpredictability when it comes to everything from nato to the national debt could easily create instability and t

that's what janet yellen announced today. in the last hour, the fed announced it will leave rates unchanged. she was skybridge capital founder anthony scaramucci runs a fund of funds with 3 -- >> 13 billion in assets. liz: missing a one there. >> it was 3 billion, and hopefully it will go to 16 before it goes back to 3. liz: i need to get to anthony scaramucci first. >> two questions that were not answered. liz: before you do that, anything she said say to you deploy money and move it. >> fixed income, that has been mispriced due to technical selling related to the vocal role. the two questions that were not asked to chair yellen number one what is the impact to gdp for obamacare? what is the impact to productivity to obamacare? and i think what you would find is obamacare has slowed down the economy. i'm not saying it's a full percentage point of gdp, but it could be -- liz: before you say, that get something out here because we're required to do it. anthony raises money for donald trump's campaign. so we just need to get th

now, let's get more on janet yellen and her testimony yesterday. just to put things into perspective, we were reporting on voting and discussing and analyzing any referendum issues, which we will be following as the result come across the special coverage tomorrow. it actually starts at midnight tonight. watching and waiting. yellen's second day of testimony on the hill did little to convince investors that a hike is in the cards soon. the markets have been lower for longer. yellen emphasized that it is not all bad news. >> we have a drag from slow growth and the west of the world and a small dollar that is impacting trade exposed sectors. on the other hand's we have -- consumer spending is strong and -- we had an economy for the last four quarters growing at 2%. growth was quite slow in the first quarter. looks to be picking up. while we are watching things, i do not want to send a message of pessimism about the economy and where we are going. joining us for more on guestd rate path is our for the first half hour of the show. he is michael mckee.

we think one of those people is chair yellen. we actually think the probability of two hikes, has gone down. it will impact the two year. the 10 year will be much more relevant to the future path for rates. scarlet: before we let you go, what is the number one thing you want to hear from janet yellen in her news conference? very much a glass is half-empty statement. i will look for janet yellen to indicate some positive. it is a very dovish statement. we will see if she tries to create a two-way read of her intentions or if she tries to reinforce the dovish statement? >> i figure you will see a little bit of clarifying ballots to offset a little bit of dovish. >> the market is really taking it as a dovish move. it will be reliant upon the data. we are spending a little bit too much time. richard ofto thank pimco. thank you for joining us. let's get a data check. we need to be reminded to check the 10 year yield as well. moving dramatically after this statement. the michael mckee now volatility here and what it would mean for the

janet yellen warning to not overreact to the weak jobs report. she was saying gradual rate hike could still be appropriate as the good outweighs the bad in the economy. u.s. stocks are kicking off a week now in green at the s&p is trading at the highest level since last july. and a bloomberg exclusive. vonnie: our interview with jack results for his chinese officials. why he is calling on china to improve monitoring policy communications. we are an hour now from the close of trade and i want to head back to the market desk where ramy has the latest. we are near the highs of the session. ramy: that is right. the down the s&p looking like they are at session highs are than half his just off of its session highs right now. the most by 8%. all of this coming off of the back of janet yellen speaking in front of the reserve today. we saw a leg down and five at talk but she said the u.s. jobs report is disappointing. something we saw last friday, as we should not take that one significant point in time, that it is much bigger in terms of a larger fabric

i thought yellen was pretty balanced.he week's jobs number is something they're not going to ignore. we're going to have a jobs report ahead of the july meeting. i think july is quite possible. but it's going to depend on the data. the broader data has been pretty good in the u.s., as yellen said, in terms of the activity data. payrolls is a pretty noisy series. the three month to six-month series is pretty reasonable. >> andrew, thank you very much for joining us from london. andrew balls of pimco. >>> voters are heading to the polls in six more primary states later on tonight. and the news is official that hillary clinton is the presumptive democratic nominee. bernie sanders says he's not giving up. the latest from the campaign trail next. >>> before we head to break, here the weather channel's national forecast from jen carfagno. >> we're continuing to watch tropical storm colin rapidly move away, skirting along the north carolina and south carolina coast and out to sea. minor impacts. it's leaving a tail of it in to f

we will hear from janet yellen again today. for that and then the big vote tomorrow. incidentally, we had been seeing a decrease in trading volume over the past several days. the only index across europe where we are seeing an increase in volume in the 20 day average. grahamseeing a waiting -- waiting game on the part of investors. not surprising given the magnitude of the vote. i want to come back to tesla solar city and i'm fascinated by this today. shares are trading higher by 10% on tesla classes offer to buy the company. they are trading lower quite sharply by 10%. analysts seem baffled by the offer this morning and by the timing of it. i have seen commentary calling it a bailout and not a buyout. we will see how this unfolds over the day. elon musk has tried to explain his rationale for the deal. in the market, we are looking at the oil companies. seeing a bump up along with oil prices. janet yellen is speaking this morning and we will get weekly inventory data. that could affect the price of and these stocks as a result.

this afternoon, a fed meeting and 18 yellen press conference -- and a key yellen press conference.is polls. you give paul's, a bloomberg politics poll shows clinton up ,nd truck -- speaking of polls a bloomberg politics poll shows clinton up and trump down. this is "bloomberg surveillance." i'm tom keene. with me, francine lacqua. here.e is everybody in can't today? why is this chancellor going to chancellor?former what is it about kent? kent is in the southeast of england, one of the home counties. this is where the chancellor will get together with the labor former chancellor, talking up the reason why u.k. should remain in the you. -- yuv u.k. should remain in the eu. flotilla -- have you ever heard that word? it is very british. we will get you pictures of that. that is the flotilla, five or six barges going through, shouting pro-brexit. get to bloomberg first word news. she is not on a flotilla. here is nejra cehic. nejra: a new warning from british chancellor of the exchequer george osborne on the risks of leaving the european union. he will say in a speech today that leaving

janet yellen says she is fairly sure the u.s. economy will improve enough to warrant another interest-rate increase. >> the economy recently has been affected by a mix of countervailing forces. i see good reason to expect that the positive force supporting employment growth and higher inflation will continue to outweigh the negative ones. >> a former bank of japan executive says the boj should abandon its timeframe for inflation. -- chancellor merkel -- more policiesloys that defy common sense it will have a lot of explaining to do. saudi arabia has improved the sweeping economic overhaul part of its view of a post-oil future. the program includes cutting up center wages. puppet that is seen clamming to 30% of gdp by 2020. a goal some analysts think is unrealistic. three people have been killed and floods and another appeared to drown. the three victims were all trapped in their cars in separate incidents. it ensures -- ensures say they have already received claims worth $41 million. any banks were hedge funds thinking of committ

chair yellen: thank you for the question.es itsl reserve mandate and appropriate objectives from congress. congress has assigned to us two main goals, mainly full .mployment, and price stability that is our focus. that is what we keep our eyes on . you asked if our focus is just the next couple of quarters, and the answer to that is absolutely no. we are trying to take a medium and long-term perspective in setting monetary policy. we respond, and our views on policy, respond to incoming data such as the surprise like the labor market report last friday, only to the extent that we determine, or come to the view, that the data is meaningful in terms of changing our view of the medium and longer-term economic outlook. so we are focused on a medium and longer-term. various negative impacts of low interest rates, well we will recognize -- recognize. you mentioned the impact on insurance companies, pension funds, the fact that low interest rates can reach entities like nose, but also ordinary investors to reach for yield to take on

on monday yellen called the figures disappointing. analysts think that's unlikely fed officials will decide to raise the rate when they hold a policy meeting next week. >> new questions about the economic outlook have been raised but the recent liberal market data. >> but yellen describes the overall labor market as quite positive. she says further gradual increases in the rate are likely to be appropriate. yellen indicates the fed will keep monitoring the labor market closely. >>> now following the speech, both major industries ended up more than half a percent. many investors were relieved as it seems the fed won't be raising interest rates so soon. let's see what is happening with tokyo markets. we'll go to ramine. what are you sieeing over there? >> a lot of traders also taking yell yellen's speech and suggesting rates wouldn't really go up until the economic outlook becomes a little clearer. so let's have a look at how all of that is hitting tokyo stocks this tuesday morning, june 7th. both indexes in the positive. now just a rem

they behaved dramatically as janet yellen articulated where she sees the economy. can see from this intraday picture right around 1 p.m. the dow cut its gains in half, but the minute janet yellen mentioned that interest rates were still on the table, at least tiny hikes, the markets blasted back to previous levels and then hit session highs. we should also look at crude oil futures, because they had a pullback after yellen spoke, still coming, oh, so close to the $50 a barrel level. check out some energy stocks. transocean, chesapeake, ensco, those were certainly helped by a move of more than a dollar to the upside. anywhere from 11-13% gains. make the bank jumps look like nothing. let's get to the floor show, our traders at the new york stock exchange and the cme group have been watching all of this. scott redler, i guess the question is janet yellen spooked the markets for about 38 seconds, and then the market seemed to be fine with it. >> i think they wanted to hear she wasn't as dovish as she might be. i think the market's getting comfortable with the thought o

yellen began speaking. look at the s&p futures. i don't think she tipped her hand whether june or july was still on the books. she did say don't panic over one month. you see that dip there. that happened just after she started talking. she did have a comment here. she did say the latest labor market data raised the less favorable possibility firms may have decided to expand their operations more slowly and i intend to continue to pay close attention to developments in this area. she went on and emphasized while the jobs report was concerning, it was a single monthly report. the general take away later on in her speech was don't overreact to the number we have here. she is particularly emphasized she was looking at the medium and long term outlook. the market moved back to where it was before she spoke. look at bank stocks, kbe which often reacts on movement in interest rates. you see a slight move to the down side. it recovered a little bit. the big story has been the oilt markets. oil has been concerned about nigerian supply disr

yellen --hair general janet yellen has a division.w she weighs in on jim bullard, who is no longer there. do you think the federal reserve should have a long-term forecast , the internal rate that they put out there in public, that they can gravitate toward? paul: i think it can be useful to help -- i think it can be useful to have that. lower nominal world. that is one of the key issues. it will cause -- so many investors are used to a world of nominal returns that are substantially higher than they are likely to be over the next few years. putting out a nominal fed on long-term target like that helps shape expectations about what investors can realistically achieve over the next five to 10 years. bullard's talked about a regime that only needs one more hike for the next two years. can the fed gravitate toward where he is currently? paul: not without mind altering drugs, no. you cannot. you have negative real interest rates at the moment. to say you are going to have one more rate hike, you have to me making extraordinary assumptions

janet yellen on capitol hill.teve liesman listening to every word and joining us now for the mostor

this is after what chair yellen said.umping the most in six years after chair yellen quelled speculation that u.s. interest rates will be raised in july at 0.7434 after at the rba leaves everything unchanged. let's get to bloomberg first word news with the very latest. >> a car bomb in the center of istanbul has killed 11 people. the city's governor has said many more have been injured in the blast. it appears to be a terrorist attack targeting a police vehicle. -- use referendum. she speak to a lawyer first. that is the warning from jenny watson, the chief counting wants her -- chief accounting officer. which forbids the publication of any information about people have voted before polling stations close at 10:00 p.m. saudi arabia has approved a economic overall on a post-oil future. a transmission program includes cutting public wages and borrowing billions of dollars to shore up finances. it declined to 30% of gdp by 2020. taking them once oil revenues to more than triple from the current figure, a goat some analysts t

we heard testimony this week from janet yellen. the congressman has a major reform package for dodd frank in the wind. we will talk about that with him and more. with our two guests. donna and pete. as we get started, mr. chairman. yesterday the financial services spending package was do to make its way to the house floor preempted by the democrats sit in on gun legislation. what is the next stop for that piece of legislation? >> i expect that to be up on one of the most available legislative days and includes provisions that are supported to make some of the washington --eaucracy more accountable putting the consumer financial protection bureau on budget. subject to the powers of purse from congress to make sure they have a bipartisan commission to set of one director. there are some good provisions in the bill and i expect it to be up in short order over the next few legislative days. >> as we are taping this program thursday morning, house democrats are still on the floor of the house of representatives. what is your view of the

janet yellen was not precise.y the way, supporters of the brexit do not want to listen to the establishment telling them what to do. remarks like those from janet yellen or president obama a few weeks ago might be counterproductive. one thing is for sure. the financial community gets more nervous the closer june 23, the day of the vote, comes. reporter: everyone is waiting to see if that interest rate rise in the united states is just around the corner. did we get any clues from janet yellen today? >> the next meeting is next week, tuesday. i am not sure which teams will play the euro cap next week on wednesday. i believe we can watch football and do not have to be too concerned about the federal reserve, especially after the weak employment data from last friday. janet yellen did say those numbers came in disappointing so there will be no change in monetary policy next week. july is still on the table. we will get more news from the labor markets by then. overall, janet yellen did sound quite upbeat overall on th

yellen has made no sense. yellen has made no sense about her insistence to want to raise rates.that the data is telling her. >> kevin, you agreeing with that, there's a lot of people who think that the fed needs to normalize, to them that means raising rates at some point. >> well janet yellen has made it clear she thinks gradual increases in the fed funds rate are appropriate for achieving their goals of full employment and inflation stable near 2%. she's also said that uncertainties are currently surrounding the outlook for the economy and these uncertainties preclude any near-term rate hikes. these uncertainties these uncertainties include the slowdown in business investment spending, soft data from the labor market. of course, all the international developments, uk referendum, growth in china. and closer to home, the slowdown in production tist growth and what is happening to inflation expectations which appear to be falling recently. so combined in all of these things, i think the fomc reached a conclusion that at least for the near term, rate hikes are precluded even thoug

"yellen warns on brexit." not exactly what you said. >> i said we are monitoring it and it could have consequences. >> you would not characterize your testimony as a warning on the brexit? -- if that means that ts,m warning u.k. residen i'm not attempting to take a stand. they are going to go to the polls. they have had an active debate on the issues and i'm not providing advice in that sense. >> good. thank you. i sympathize when headlines don't exactly capture the exact meaning of what one says. and to be fair to the guardian, they are not the only outlet that has reported your testimony along those lines. the bbc and fortune have as well. so to be clear, you take no position on whether u.k. citizens should vote to remain or leave the eu and the federal reserve takes no position. >> that's correct. i'm simply saying the decision could have economic consequences that would be relevant to the u.s. economic outlook that we need to monitor carefully. >> thank you for that. because i certainly think that we all i

janet yellen said the u.s.on is not the likely scenario if brexit happens. >> the other big question everyone wants to know from janet yellen is what about the rates rise? are we going to see a rates rise coming up or is that looking extremely unlikely now? >> it seems unlikely, daniel. from what's going to happen to interest rates in the coming months, janet yellen expressed optimism about the economy and downplayed risk of recession. once again, the fed chairwoman said the central bank will be cautious about increases until it is clear that the job market is holding up. as for now, the market is not expecting the fed to increase rates until the end of the year. >> thank you very much for that update. and things are getting even tougher for the vw executives after prosecutors say they were investigating the former ceo on suspicion of market manipulation. volkswagen has said a current brand manager is also being probed for having informed markets too late about the scale of the diesel emission scandal. germany'

agenda, janet yellen heads to capitol hill. fed declare will deliver part one herm semiannual testimony. it starts at 10:00 a.m. "squawk on the street" will have it covered for you live. day one is always much more interesting and she gets much better questions. and there's lennar reporting after the bell. fedex and adobe. >>> coming up on "worldwide exchange," top brexit campaigner michael gove joins us live. he makes a for a go vote. >> here's wra businesses have to say about potential impact of a go vote. >> a major player, and we've tried this for a while and we'd rather go it alone. it's a major sfafactor. the world doesn't come down or anything. even though they're not in the monetary union, that would be a big step backward. we were born 100 years ago into a new american century. born with a hunger to fly and a passion to build something better. and what an amazing time it's been, decade after decade of innovation, inspiration and wonder. so, we say thank you america for a century of trust, for the privilege of flying hi

that is how janet yellen characterized the u.s. economy today. the most powerful central banker on the planet was on capitol hill and acknowledged the uneven recovery in the u.s. economy. global economic risks and lackluster growth here in the u.s. yellen reiterated her outlook that the central bank will eventually raise interest rates, but gradually, and only if the headwinds she sees start to ebb, and there are a lot of them. steve liesman has more on the fed chief's testimony. >> reporter: in testimony before the senate today, fed chair janet yellen reinforcing caution over the near-term outlook for the u.s. economy. she emphasized t t the uncertai of the brexit vote this thursday, the recent slowdown in u.s. job growth, and global economic weakness. >> a uk vote to exit the european union could have significant economic for all of these reasons, the committee is closely monitoring global economic and financial developments and their implications for domestic economic activity, labor marks, and inflation. >> reporter: longer term the fed chair

janet yellen saying that the positives in the u.s. economy outweigh the negatives but still there is no data out there. headss top messaging app toward the biggest tech ipo of the year. a possible value of $6 million. up 56% now from the lows we saw in september. the glass ceiling has been shattered. hillary clinton has enough delegates to be the democratic nominee for president. the 2016 election is now officially underway. do follow me on twitter. out of thews coming philippines. the latest inflation readings. unders putting inflation the central-bank target of two and 4%. this is the 13th consecutive month it is coming below that level. we look at what was going on here and then predicted a rise of 1.3%. china hong kong markets getting underway in 30 minutes. singapore taiwan malaysia. juliet, a third day of rising equities as part of the world. a five-week high for asian markets. it's all about the janet yellen effect. more about what she didn't say that what she said. market was looking for specific timing for when the fed would

yellen. so, in response to the financial crisis, the emergency economic stabilization act accelerated its authority that had been granted to start paying interest on reserves from 2011 back to october 1 of 2008. and according to new york district bank, the fed expected to set interest on reserves well below the fed's target policy rate, that is, the federal funds rate. had the fed created such a "rate floor," it would have complied with the letter of the law. section 201 of the financial services regulatory relief act of 2016 explicitly states that interest on reserves can "not exceed the general level of short-term interest rates." however, as we learned in last month's monetary policy and trade subcommittee hearing, interest on reserves is above the fed funds rate. this above-market rate not only appears to have gone outside the bounds of the authorizing statute, it may also be discouraging a more free flow of credit in an economy that can and should be flourishing. speeding up the authorit

we did see earlier when janet yellen was talking, a leg down.ouped most of that over the course of the afternoon. we did see this problem on signs supply isl oil receding. militant attacks in nigeria of course as well as the weaker dollar pushing interest on commodities priced in dollars. it fell off of what is happening, let's see the other oil makers. halliburton up more than 4%, phillips also 2.7%. these are food commodities. take a look at what is happening with wheat, corn, and soybean. they are all up. , this is getting a november high. the reason is whether-related. a lot of rain in russia is slowing down the planting season and raising concerns there may be fungal diseases. with corn, whether is also an issue. up 2% here. it is a 10 month high, but this is a lower south american outlook because of weather. b mo is saying falling south american profits and more demand from china is affecting the price. you got stuck about fertilizer we talk about -- you have got to talk about fertilizer, and this is falling. products --saint the chinese e

today, janet yellen is speaking today.what he might say that will dovetail with what she has today at -- today. let's take the premarket for what's moving ahead. dow futures are up 3/10 of a percent. s&p futures are gaining five points. nasdaq is up quarter percent. let's go to julie hyman. julie: let's look at some of the other assets we are watching you the u.s. dollar is strengthening here across the board versus a broad basket of currencies. a rally is in decline. we talked about the latest poll numbers out of the u.k. and thou -- how that is hurting the pound. the also have the dollar strengthening versus the yen. if you look at bond yields this morning, they are rising for the first time going back to may 27. a little bit of selling is coming into the bond market. there you go. the 10 year yield is at one thing 72%. for more on what we could expect from the fed meeting, mike mckee is with dennis lockhart. over to you, mike. mike: we're live with dennis lockhart. he is the president of the atlanta fed it. good morning

up next, waiting for janet yellen. chair is going to speak for the first time since that jobs report all but killed the chance of a u.s. read hike. we go to that speech, next. ♪ francine: after friday's jobs report, janet yellen is due to speak in philadelphia today. the low payroll numbers have pushed back the possibility of a rate hike to december. michael mckee joins us from new york. great to have you on the program. how likely is it that janet yellen could surprise the markets? >> there's probably a good chance for people that think it is off the table until december. the fed does want to raise rates. we've heard from a couple members of the fed over the weekend. just this morning, saying they still believe a couple rate increases are appropriate in a gradual way. is question for the fed whether they think it was a bit of a blip in the numbers or whether this is some new trend for the u.s. economy, slowing down and taking rate hikes off the table. francine: michael, where does the jobs report leaves the hawkish me

yellen, let's talk about yellen, leading the retreat. she is sound and less and less dovish.he federal reserve chair offered a subtle but meaningful update to her outlook. >> proceeding cautiously in raising the federal funds rate will allow us to keep the support tolicy economic growth in place while we assess whether growth is returning to a moderate pace, whether the labor market will strengthen further, and whether inflation will continue to make progress towards our 2% objective. guy: the devil is in the detail. in case you didn't catch it, she says the fed will assess where the growth, the labor market, and inflation will make progress. last week at a press conference, she had said, verify economic improvement. are we reading too much into this? sometimes, these words are important. jonathan bell, ceo of stanhope capital, joins us. mr. dudley has. at the bottom of the dot plot chart. he says effectively we are going to see a low rate environment from the fed for a very long time. do you agree? i think it's going to remain low for a very long time. the question is, what

chair yellen: we are looking at both. with respect to the behavior of behaving, inflation is roughly in the manner i would have expected. i was really not seeing significant surprises there. we have long said, an important reason inflation is as low as it has been, is because of past declines in energy prices, increases in the value of the dollar. as those factors begin to dissipate, we would see inflation moving up. now that is exactly what we are seeing. that is in line with our thinking and with the data. those things have stabilized. their influence is dissipating. inflation,t to core which is partly influenced also by the dollar, much wrong to pull out the dollar in import rice influence, core inflation seems to be behaving roughly as one would expect with well anchored inflation expectations and an improving labor market. ,o i'm not seeing anything inflation, even core inflation is running under 2%. i continue to think the evidence supports a projection that it will move up over the next couple of years back toward

tracy: based on janet yellen speech, she might agree with you.us: i am certainly not as qualified as janet yellen. i have to put that caveat in. look, you mentioned yellen, and we have mentioned her a couple times. she is worried about brexit. we have a sweep of conversations coming. we've got yellen speaking this week. tracy: we have a board governor, jerome powell. minneapolise have fed president neel kashkari. on big one is yellen tuesday. she is giving her congressional testimony. there's going to be a q&a. you can expect a lot of questions about the decision not to raise rates, and the big one for our purposes, you can expect some stuff about brexit. it's basically her last chance to talk about it before the referendum. manus: what fascinated me with charles evans out of chicago, let's jettison rate hikes until we are at 2%, and james bullard saying, welcome to wonky friday. there's a mismatch between what the fed is saying and what they are doing. that is the whole point about forward guidance. it was supposed to deliver clarity. tracy: i t

and again, listen to janet yellen.u look at the trajectory pedestrianit is progesteron particularly, wage inflation. anna: there we have a battle in the markets won in terms of -- nick: we're only halfway through the year. but certainly if you look at the aart of the year, it is four-year rate hike. they have come down a long way and got much closer to the market. ck, i thought it was interesting that janet yellen focused on the dollar, and the rhetoric she used in the sound we played, the u.s. really has the slower dollar. they are shifting here in the dollar? nick: very much so. if you think a u.s. context, the dollar is absolutely critical. because the dollar is the transmission mechanism which makes financial conditions a lot tighter, or a lot looser. so from the fed's perspective, absolutely. you want a stable dollar going forward. that is over the last few months. anna: thank you very much for joining us a little last 45 minutes. nick gartside, cio at fixed income at j.p. morgan asset management. a busy 24 hours