yellen was asked why is that the case? she said one of the things that they're factoring into their projection of three rate increases next year is fiscal policy. in other words if trump comes out with very expansionary fiscal policy, the fed will not accommodate an economic boom. they will only accommodate an economic boom if they see more productivity growth and faster growing labor force. if the economy starts overheating, the fed will be raising interest rates more than that. that is why i think she has the potential to be a thorn in trump's side for another year-and-a-half. liz: oh, i might think so. i see that. it is not like there is a love-fest going on of the that's okay. he didn't put her in place. she and she hasn't served him yet. people he viciously attacked in the past. guy says get in front of me, make the case, nothing wrong with that. reforming the fed? does it need reforming? as they look what they said would be three rate hikes in 2017. do you think that is appropriate because goldman sachs as they expec

ease you usually see with janet yellen.there was sort of this slip she put in about, she wanted to stay through the end of her term. fed'sserted thae independence. hostilee aat they coul president. we have had a time when we did not have that. janet yellen is not a creature like perhaps chair greenspan. it is not clear how she could fend it off. she did slip in something, i could stay beyond my term as a governor. only one fed chair has ever done t despitehe did i president truman. kathleen: bill gross was on television, the bond king. he said she has to be careful because of the dollar and emerging markets. diane: that is where one of the pressure points is. the spread between the 10 year german bond, it has gone to a wide level. this is the source of instability in financial markets going forward. part of the reason they want to go so gradually, and she pulls is even small changes in interest rates have onoutsized impact currencies. the spillover effect for currencies, given how interlinked the global economy is on financ

it be that trump and yellen end up at the same side of this fight and yellen also sees what trump seesout there that could come back in? guest: i think that accommodative fed is needed for the first six months of the year. the dow did get within 50 point -- within 15 point of 20,000. we are not going to leave the air until you get 20,000. you've noticed something else in the statement you want to bring our attention to? michael: the line about adding something to the labor market is something they've had for a long time and added the word some. more room forch improvement in the labor market. they can get little more out of it, but they are pretty much done and that squares with their new forecast. alerte had a jargon earlier. let's expand on the bear flatten her. the difference in yield between the 10 year and two year, then down we go, the red box is what happens when things go bad. help me here -- the two-year yield migrate hire while the 10 year yield comes in? guest: or it could stay where it is. it's the culmination of the end of the fed cycle. given how much flattening we've see

i don't think she will be reappointed, janet yellen. don't know that stan fisher if he were reappointed would want to stay. perhaps he would. there are names out there, john taylor is among them, judy shelton, who is known as a gold bug around monetary policy circles, her name is out there as governor. kevin worsh is being named. >> which are hawkish names, considering that trump wants to fuel infrastructure spending and deficit spending. what he really wants is low rates. >> it's hard to find a president whoever wanted a higher interest rates, you had a president campaigning saying, you know what? the fed rates are too low, they're being kept low for political reasons. now the fed is saying, okay, here's what we'll do. here's higher rates f you're going to spend more -- as wilfred points out, it's the lack of a growth increase. that may happen. they may come around and say all this stuff will boost growth, we'll get higher growth, higher rates together. this is a reminder that we're not sure how much of what will happen, and how much o

which is best for chair yellen, and ill gross? rack -- migrate back to a lower environment. -- bill gross? a gradual upward movement in terms of the forward curve is for markets.ome i think that potential is really on because of several factors. although today'statement was more hawkish than expected, i think in terms of jgb's, now would theoretically be 0%. opportunity for foreign investors to invest in a 10 year treasury, a pickup of 80 basis points, there are limits to what the treasury can do and what the bank of japan is doing. are we anywhere near the , toof a bond bear market many of them that you have enjoyed. bring up the global total return index. ais is a great chart with great bull run bonds from 2009 up. i will put this out on social. 7% on the aggregate index. are we heading toward a bond bear market? when you combine the effect of higher interest rates and narrow credit spreads which then you are beginning to see the potential for a negative sign in front of annual total return. we have not seen that yet, but as you

if janet yellen went around the table and asked one question of the participants, what would it be? vincent: how fast do you want to go? it is the profile of rate increases from here. they have gone to the point where they understand that talking about the terminal funds rate is not very hopeful because they have been wrong about their estimate of the long run federal funds rate, but more than anything is what pace of tightening should the committee project to reassure market disciplines that they are following their dual mandate? vonnie: speaking of dual mandate, vince, i have thought doing it and how close we are to -- i have the dual mandate, and how close we are to meeting both parts. when it comes to the on implement rate -- that is not the dual mandate. i will get it up in a second. when it comes to the unemployment rate, you can see we have moved through that. -- we are atre 1.4. that is likely to rise to a great extent over the next four weeks and more. s,e whites of inflation's eye at what point is it too late? at what point with the fed have to make a 50 point move, for ex

it's not janet yellen. she's never written an app. she doesn't frack wells. >> it's the academics tinkering with the economy, thinking they can fix something. we learned this with obama's administration, 90% academics there, they weren't able to fix this economy, nor was the federal reserve, for that matter. maybe having business people in the white house, at least it's a different strategy, right? at least have you people that meet a payroll in their lifetimes. we are waiting right now on janet yellen. she's expected to come out to the podium. she's going to be taking questions. there she is. right on time. how do you like that, everybody? 2:30, let's listen in to the chairman of the federal reserve janet yellen. >> good afternoon, today the federal open market committee decided to raise the target range for the federal funds rate by one quarter percentage point bringing it to half to three quarters percent. my colleagues and i recognize the considerable progress the economy made toward our dual objectives of maximum employment and p

janet yellen said this today. this is the kind of company that will make a killing if that happens because it's what's known as a short-cycle business. i spent a lot of time since the election talking about how the cyclicals have been on fire, but there are many different kinds of cyclicals. a teaching moment here. right now i want to focus on the difference between the short-cycle businesses and the long cycle businesses. a long cycle company takes a while to ramp up production and the goods have complicated production processes. boeing, the classic sxaum exampa long cycle company. while those types of companies benefit from a stronger economy, it takes longer for the benefit to flow to the bottom line. cintas is obviously not an industrial. but if they want to supply more uniforms, they can -- they make that decision in a heartbeat. and more importantly, most of their customers are the kind of short-cycle industrials that can ramp up production quickly and thus really benefit from a stronger economy instantly or

yellen, still the academic, soft-spoken, prefers to operate behind the scenes, quiet.s to stand up to donald trump. because it's incredibly important for the federal reserve to be an independent voice, en independent decision-maker on interest rates. as soon as markets get the sense that the president is dictating interest rates, start to lose trust in the institution, which would raise american barring costs, which hurts american taxpayers. oliver: ok, so here is where the story gets very interesting. because donald trump was very vocal on several occasions that janet yellen's low interest rate policy for so long had inflated the equity markets, things will happen in a bad way when we raise rates. now that he is in a position that the economic results and growth will be attributed to him, what do we know about how he will view rates now? is he going to go back on what he said? is he going to stick on what he said? >> this is the $2 trillion question. everybody wants to know exactly that. what we can look at, for example, history. it is uncommon for incumbent president

that's followed by janet yellen's news conference. then, trump's text summit. ceos coming to trump tower to meet the president-elect. plus, waiting for dow 20,000. will the fed rate hike push stocks to new highs. ticktock, ticktock. "power lunch" starts right now. ♪ >>> the best song. the clock on the march, taking a bit of a break. indexes were pulling back. you can see, we're now flat across the board. the nasdaq just inching positive. all and all, one of the rare not up days for your stock investments. and of course all of this coming ahead of what is likely just the second fed rate hike in a decade. tyler? >> thank you very much, brian. we are less than an hour away from that fed rate decision. most people do expect a quarter point hike. could it be more? we'll explore that in this hour as well. it has been a year since the last hike, then there is yellen's news conference, that's at 2:30 eastern time. steve liesman following all of it for us live in washington. hi, steve. >> good afternoon. just a quick note that we got some data this morning, the fed got

we may be entering a new phase of the janet yellen-donald trump.t did trump -- peter, you cover a lot of ground on the fed, president-elect trump, and everything that can happen with rates, yellen, and all this stuff. let's talk about what had happened since donald trump has won the election for it how has this changed the way economists and market participants are thinking about interest rates? peter: for those that aren't first in bond yields, bond prices are going down, so it has been a bad time if you are an investor in bonds. the it is signaling is expectation and commendation of higher inflation -- expectation of a combination of higher inflammation and higher growth spurred by tax cuts and spending increases. oliver: one thing we have coming up is a fed decision on december 14, which up until a couple of months ago was up in the air. the election, markets are now saying it is 100% going to happen. what are they looking at in terms of a trump policy to determine the rate in 2017? on wheree indication economist are going to go over the next ye

janet yellen says the u.s. job market is the strongest it's been in nearly a decade. the federal reserve chair told graduates that the university of maryland that the prospects for college grads are particularly good. yellen said jobs created by globalization will be filled by people with college educations. while the unemployment rate has fallen to four pinterest 6 percent it's just 2.6 percent for college grads.

janet yellen: we are not behind the curve, my judgment is that we are in a good path to reaching our objectives but the outlook is uncertain. we recognize that there are many sources of uncertainty affecting the outlook and we will have to adjust our thinking as things you've all.

janet yellen set to make remarks on the labor market.llar index last week thursday hit a 14-year high. dollar strength in most of the g10 space. david: the china-trump dance. donald trump says the undersea drone can keep it. -- china can keep the undersea drone. berkeley's about to tell up to 7000 clients they don't do about to telllays a to 7000 clients they don't knew enough business. big oil on the march. bp does a $2.2 billion deal with abu dhabi. bp shares rally on the news and that is what you need to know. substantial investments in onshore abu dhabi oil is one of the lead stories and our morning must watch comes to an interview our colleague had with the bp ceo in dubai earlier today. >> we have been working here 75 years. ,t is an important work that bp a strategic relationship for a long time. given our discipline financial framework and meeting our obligations in the u.s., it took us a while to work to the point where we could make this great investment with abu dhabi and the key element -- abu dhabi will be a 2% owner of bp.

i did not see animal spirits from janet yellen last week.he looking at that we are not looking at and how do you react to the fed raising interest rates? >> first of all surprising that they were a bit more hawkish than expectations however like you said janet yellen said this in the last meeting. listen i think the biggest day of the year was september 21 where the bank of japan came up japan came off of negative interest rates help the banks and insurance companies. yellen came out and said we are going to let the economy run hot and then you think about what she's doing now it's uncertainty they don't have to be that fast. we can be behind markets led inflation run a bit hotter in the economy run particularly for hiring more people read wages are growing in the fed when you enter a tightening cycle different than when you're easing the federal reserve's are behind the market. exactly what she articulated is we haven't seen it yet and we can give it a bit more time but their others on the committee and this is why we move from expectations

could janet yellen surprise us? not on the moves itself. ofre is near zero chance them not doing or doing a more aggressive base. we have to watch for what are for next year?ns each of the fed members will project growth and unemployment. aremoment the markets pricing another two for next year. it will be interesting to see how the fed thinks. thought they would behind keene four times during 2016. they are just likely to do the one today. the market is this leaving. pricinguickly, they are one. will we get the disconnect? the fed is saying we could do three or more. will the market react? we are in a state where the market will listen more to the fed. the markets are bullish on the trump victory. that will mean higher growth. they are moral -- more bullish and that would be a signal for the economy and the dollar. >> we have seen these 16 record highs. how much will the election have changed the fed's plans and how much do we expect to hear about donald trump today? >> it will alter the plan once we get a feel on the fiscal stimulus. monet

yellen,re hearing from and also the annual address in moscow.hat will be interesting, because there is a lot of calls for investigation into vladimir putin's alleged role in hacking the u.s. election, according to the u.s. intelligence agencies. and donald trump continues to prepare for the january inauguration, he will announce more appointments and have interesting things to say about china. yvonne: let's get the first word let's get the first word news with sophie. sophie: thank you. relations between washington and beijing remain straight after china seized and underwater drone in a gray area. they say it was international, but china says it was near the shore. washington says the drone will be handed back, though president-elect donald trump said china should keep it. john mccain and three other u.s. senators have called for a congressional inquiry to it appearance of russia in the general election. advisors to donald trump said there is no consensus over moscow's role. they also said president barack obama has no strategy for dealing with

janet yellen yesterday in her speech to college graduates at the university of baltimore. she was talking about how people who graduate now that they're entering the strongest u.s. job market in a decade. job creation is strong and wage growth is picking up and there are more openings, as well. she is still cautioning that the economy is weak in certain areas. but, without mentioning monetary policy, though, it is still a stronger economy than the economy surely that obamas had to navigate through during the financial crisis. >> this is called late cycle. that's what it is. the average length of the u.s. cycle is five years. we're now past seven. so, it's possible that the donald with a bit of confidence can kind of borrow another year or so. but a number of credit signs are showing deterrieration if you look at things like consumer loans. greater delinquencies. i am afraid i believe the business cycle hasn't gone away. late cycle anyway. the numbers are strong. >> so you would actually advise people to take profits now. you don't think it's too early and you don't think w

off the records reached state side with the dow reaching the 20,000 mark ahead of the fed as janet yellen gets set to reveal what the outlook is for next year. >>> allianz chief economic adviser mohammed el-erian tells us gels's fed won't be swayed by president-elect trump. >> in terms of the fed itself, i don't think that they're going to be highly impacted by what mr. trump may say. what they'll be impacted by is how much of the market movements they internalize in their own projections. >>> vivendi turns up to the pressure on mediaset, sending the shares to the top of the stoxx 600. but a media battle could be brewing as fininvest, mediaset's biggest shareholder, warns against a hostile takeover attempt. >>> healthy discussions? actelion shares slide after the swiss biotech company says it is in strategic talks with an undisclosed suitor, as johnson & johnson drops out and a report suggests sanofi could be the winning bidder. >>> good morning. welcome to "street signs." about an hour into the european trading session, a decent amount of red across the european map with the italian ftse

there has been no attack on the fed or janet yellen. very little talk of protectionism.f we do not get design of implementation, many people are giving the president-elect the benefit of the doubt. i wonder how much benefit of the doubt you are giving president-elect donald trump and all of those energy-related appointments? especially your seat in the by -- dubai? it is central to the world. >> i can only comment on the economic appointment. i will give more than the benefit of the doubt. to people who are experienced and progrowth. as long as they surround themselves with colleagues that know how governments were, that can be very potent policy team. on oil, i think the major issue is the supply-side. it is the extent to which opec has forged the indifferent agreement. -- in different in two ways, the exclusion of angered bymbers russia, which accounts for over half the cuts. that is anchored by commitment at the highest level in russia. second, within the opec come of this is a more flexible agreement. it is more among opec members. the major change on the oil side is

janet yellen has had a dovish bent.ieves fixing unemployment is a and important thing for the fed to do. she may be in the crosshairs of a trump white house no matter what she does. david: michael mckee, thank you so much. be sure to watch our special coverage of the highly anticipated fed decision starting at 1:00 p.m. in new york eastern time on bloomberg television and on radio. jonathan: how does it work? president elect donald trump meeting at 10:00 then he goes on twitter and breaks out of a meeting and it sends out his thoughts. is that how it works? david: do you tweak the cac 40 the tech or do- you tweak the fed? jonathan: the dollar this morning is a little bit softer. the dollar index down by 2/10 of 1%, but still above the 100 handle as we await the central bank decision later. joining us now is stephen engle if it -- stephen englander. of last meeting i can think where the dollar index was hugging 100 and fed chair janet yellen came out and went back. what is going to be different this time around? stephen:

yellen: i don't want to weigh in. i don't intend to weigh in. i haven't weighed in on either fiscal policy specifics of evaluating policies. i'm not going to weigh in either on the details of particular trade policies. but more generally i'd say, you asked me about manufacturing. there are a lot of manufacturing jobs lost over a long period of time, particularly during the great recession. we've had some recovery in manufacturing employment as the economy's recovered. so to some extent manufacturing employment depends on the progress of the economy and we have seen some recovery. over a long period of time, technological changes, something that has been important in ing cing manufacture employment absolutely and is a share of jobs in the economy, for decades the pace of technological change in manufacturing has outstripped hat in the economy as a whole. firms, manufacturing firms have founded -- found it easier to continue producing with reducing their work forces. that's a change that i would expect to continue. you menged worker assistance. so

janet yellen insisted the central bank is not behind the curve. year, 2.20 5ast million net new jobs have been 2.25 million jobs have been created. we expect the economy will continue to perform well. with the job market strengthening further and inflation rising to 2% over the next couple of years. anna: expectation for stiff -- with evening in borrowing costs don't sit well with growth. she questioned the ability to absorb a quick pace of policy tightening. >> i would doubt the ability of the global central bank and the fed to raise interest rates three times a year for the next several years, because the global economy and even the u.s. higher is relatively leverage, and housing will begin to reflect that. anna: joining us in london is the chief executive at hand mural. mural. mural -- pan she said there was no need for fiscal stimulus and sees further tightening in the labor market ahead. what does that tell us about a yellen-trump combination in the u.s.? it was at best a rough guide for where the policy may head in 2017. i think what was mos

charles: while janet yellen was dodging questions. there was news from an iconic american company, i think it was ignored but u.s. steel was once a bellwether name. it was part of dow jones until it was dropped in 1991, opening part of a plant that was mo moth balld ined in january. in illinois, between a mill and a believe the furnace there. -- a blast furnace there. 1500 workers lost their jobs, this is a step in right direction. meanwhile, s&p 500 all of the sectors were lower, what was telling? utilities sector sold off more than any other, think about is, if there was real panic it would are been best performing sector, not the worst. after the close we had a lot of movement on individual stocks. international share, they are soaring, rumors hot they have kraft heinz will take them over, people believe that will resurface. small company, but intriguing. up on strong earning, driven by architectural business, housing bubbling they come on, and upbeat news from pier 1, those stocks are soaring. now maybe, they wouldn't say so at da

trump and yellen, which is going to be a big story.ppens with interest rates and what is going on in the market now. more bloomberg television starts right now. ♪ ♪ coming up on "bloomberg best," the stories that shape the week in business around the world. bloomberg television is focusing on energy. we hear from the top leaders and opec ministers preaching in vienna who are reaching age other cut oil production. >> the market price as a 30% chance of a deal. we expected a deal. one of the key reasons, the economics of the deal were compelling. >> the trump transition continues to hold the world's attention appeared at the latest cabinet -- attention. the latest cabinet picks. >> our number one priority will be

janet yellen just get her press conference a few minutes ago.e's what she had to say. >> over the past year, 2.5 million net new jobs have been created. unemployment has fallen further and inflation has moved closer to our longer run goal of 2%. we expect the economy will continue to perform well. >> that was janet yellen speaking there, a short time ago. we went over to the new york stock exchange to gauge the market reaction. i asked him, with bond yields and inflation expectations going up since donald trump one met the election, isn't there a shift away from the fed providing economic support? >> that really depends how the economic policy of donald trump will be. that is say we had some kind of trade with china and tariffs on chinese products that would increase prices in the united states, we are talking inflation and the federal reserve might increase rates even more than we expect today, so a lot depends on the policies of donald trump and we don't know precisely how they will look like. brent: and we know that president-elect donald tru

that's followed by janet yellen's news conference at 2:30.he countdown clock for cnbc is up, 8:53.40. stay here on cnbc for all of it. >> you don't have to watch the clock for all eight hours. >> you do. you have to watch the clock for eight hours, 53 minutes, 32 seconds. 8:30 a.m., producer price index a nice read on wholesale inflati inflation. retail sales at 8:30. 9:15, industrial production, 10:00 a.m., business inventories. >>> president-elect trump will hold a roundtable summit with tech leaders today. among the intended attendes aes are tim cook, sandberg, jim bay soe bezos. one noted person not attending, is dorsey of twitter. maybe saying i'm not going to go because it's a conflict of interest, but apparently not invited. >>> ginny rometty announced her firm plans to hire 25,000 new collar employees. she says that the new jobs will come over the span of four years including 6,000 added positions in 2017, next year. the company will invest 1 billion in retraining and developing u.s. workers over the same time span focusing on vocatio

janet yellen was fairly optimistic. do you agree?> yes, i think even after this rate rise, interest rates are very low and they will not return to normal for another couple of years. , it's a slowg rush move. kate: what about donald trump's election? do you think it may have had an impact on the fed's decision? >> no, i really don't think so. if you look at the forecast they themsed, you don't see factoring in much of that either. i think they will be in a wait-and-see mode. they don't want to jump the gone or anticipate what the administration might do -- they don't want to jump the gun. the president-elect himself has been critical of janet yellen. could his head -- could his administration change anything with her leadership? >> congress could pass a law that would change just about anything about the fed, but there is nothing proposed that is that radical right now, nothing i have heard of. he gets to choose a new chairman and janet yellen was asked about that. she said she had not given any thought as to whether she would stay i

nothing will change for janet yellen.modative, and the fed must right size amid trump reflation and go to cash. ok, here is the truth, folks. i went to cash, and i and many others have seller's remorse. for this entire hour, abby joseph cohen from goldman sachs, we look at through the prism and

trump was critical of yellen during the campaign. >> this janet yellen of the fed, the fed is doing political. the fed is more political and secretary clinton. >> janet yellen should have raised the rates. she is not doing it because the obama administration and the president doesn't want her to. >> i think she is very political. to a certain extent, she should be ashamed of herself. >> congress gives the fed the power to act independently. it does not need approval from in government to move the rates. there is some skepticism that the move could be inspired in the political world. >>> a new truce. a cease-fire declared in syria. will it last long enough to let civilians escape aleppo? we have a live report ahead. g better buddies since we started shopping at fingerhut.com. first down! as close as two friends trying to annihilate each other can be. ahh, interception! that's because with fingerhut.com we can shop over 700,000 items from brand names like samsung, keurig and sony. go to fingerhut.com to get low monthly payments and the credit you deserve. and get great stuff like this awesome f

it does not sound like janet yellen in this camp yet. ishaad: janet yellen downplaying that, but markets not downplaying stocks. could this be seen as an overreaction? >> you might have thought the bond markets have sold off so much, why selloff more on something that is only adding one interest rate increase in 2017. let's jump into the bloomberg and take a look at a chart that says it all, 5350 one, at the far right, you can see a spike in yields and you can see broadly on that bottom white line, two-year treasury yields are at their highest since 2009, a part of the curve that is most sensitive to interest rate changes, shorter term paper. bill gross earlier said that the rising dollar is a risk to the fed and they have to move cautiously. he said emerging markets like theyo and brazil, he said will not be increasing interest rates three times next year, so we can wonder what a bond that like that from the bond king is important, but markets sold off today around the clock. rishaad: thank you for that. kathleen hays in new york. austr

will janet yellen say anything about president-elect donald trump? about 30 minutes into the trading day. >> welcome back. a lot of record highs to greet you. the dow s&p 500 and nasdaq are all trading at record highs. the dow is creeping closer to 20,000. we have the dow about 100 points, little more than 100 points away from the marker. on paper, the seventh record close in a row. some real strength for the dow. the dow can gain to 20,000 today, it will be the fastest 1000 point gain ever. we take a look at thousand point gains here. to 11,000 ined just 35, the longest streak here back in 2007 to 12,000. today, it will be a 21 day 1000 point climb. stocks.momentum for a big topic to certainly keep an eye on. as for the bonds, interestingly as we have stocks rallying, bonds are rallying a little bit as well. we see this with the today view of the 10 year yield. price traits in verse two yield. this is ahead of the fed meeting tomorrow. we look at the wirp function 30 122.btv we see there is a 100% probability the fed will in fact hike rates tomorrow

downn: janet yellen -- >> gas janet yellen was tried to downplay the shift in the press conference, sheessarily a new world they were looking at, a few numbers of the committee thinking about the implications of donald trump , they said many had countered that out of their forecasts. what was a little bit hawkish was since that the unemployment rate is getting close to full employment or maybe already at full employment in the fed view and that you see forecast as they are reducing further their unemployment rate through the next couple of years. it suggests that they are no longer thinking in terms of this running the economy hot and if you that is -- the idea they are striving to be behind the curve took a bit of a battering with yesterday but i would not overdo it. they are in wait and see mode, data dependent and i think the dollar will have an impact. if we see a further upward move in the first half of next year, they will consider whether that is good for the u.s. economy. francine: you are expecting high -- hike next year? next year andtwo for the following year. -- four the fol

do you look for a clearer message from chair yellen today at go -- from chair yellen today?ed is going to do as guy mentioned earlier, it will be too soon to say with certainty what we are going to get. but there is no question the risks have shifted pretty dramatically here, given the makeup of congress, given the administration, given what they both say they are going to do. i think you are going to see movement in that direction. it will be interesting to see just how many dots do move. i expect some of the upper dots to me moving further. ,om: are we at a regime change as james bullard has talked about of st. louis? is it a regime change right now? peter: it sure feels like one. a pretty dramatic shift in the markets, general expectations about the risks facing the u.s. economy. we have gone from the next turn is going to be down, inflation weakening again, to inflation is headed upwards. guy: tom, we have great coverage coming up later in the day, as we go toward the fed announcement and the press conference. this is not something that happens every time. we will have s

the real issue to me is not as a great person like janet yellen, political.he is doing the best job she can. the process is not opaque or transparent and that makes it difficult to understand. emily: how do you think trump versus clinton would impact the growth? >> when you have a president -- let's say trump wins -- and you do not know what he will say next, he has not been able to control himself this close to the presidency he is not going to change. david: some of the last polls show hillary clinton maintaining a moderate lead over donald trump. >> u.s. stocks over 2% with every major interest group and the s&p 500 up. this is the best one-day performance since march 1. >> financial markets are making it clear -- they do not want to see a president trump. >> bloomberg news saying donald trump is poised to become the next president of the united states. >> we are actually looking at a possibility tonight that is even more extraordinary, he wins pennsylvania but he might also win wisconsin and michigan. >> trump stuns the world. wisconsin has been called fo

nothing will change for janet yellen.ey are accommodative, and the fed must right size amid trump reflation and go to cash. here's the truth. i went to cash, and i have seller's remorse. for this entire hour, abby joseph cohen from goldman sachs

the federal reserve chair janet yellen at number six. had hillary clinton won might she have the number two spot? talk about the ladies. >> a number of ladies fell off this year, one of them being hillary clinton. if she had won the election she probably would be number two at least. we do see janet yellen as high ranking on the list, this is a woman who really is the primary market mover in the world, meaning she's in charge of monetary policy and she's such a steady hand over monetary polic policy. angela america is really the last bastion of liberalism and is the face and head of the eu. >> the list of the most powerful people in the world according to "forbes" magazine. david ewalt, thank you for swinging by. >> thank you. >>> next, tributes are pouring in for one of america's favorite tv dads. what makes this simple salad the best simple salad ever? heart healthy california walnuts. the best simple veggie dish ever? heart healthy california walnuts. the best simple dinner ever? heart healthy california walnuts. great tasting, heart

. >> reporter: janet yellen had a mid year machine for college students.in school and get that degree. in a commencement speech at the university of baltimore, yellen told graduates that the pay gap between those with college grease and those are high school diplomas has widened to a 720%. but graduates only get those benefits if they, well, actually get the glodiploma. >> research shows higher education comes only to those who graduate. even those completing three or more years of college bench less when they don't get a degree. >> for example, yellen said that college graduates usually find jobs that allow them to pay off their student loans, and there's more. >> beyond these advantages, research also shows that a college or graduate degree typically leads to a happier, healthier and longer life. >> those college agrees needed more and more because of globalization and advances in technology. the fed chair offered a fairly upbeat assessment about the u.s. job market overall. she said the u.s. has the strongest job market in nearly a decade, job creation

will he signal some pressure on general -- on janet yellen? he did to boeing and other companies. trump, you can open any of these tweets from donald trump. see where it says subscribe to tweets? you can have an automatic feed of trump tweets into your bloomberg messages. host: we might need that for at least next year. [laughter] more from former fed chair alan greenspan later on bloomberg. watch out for more interviews with the former ecb president and bank of england governor mark carney. bloomberg will have special coverage on wednesday on the fed decision beginning at 1:00 p.m. in new york and 2:00 a.m. in hong kong. if you are staying up for that. host: and you might. [laughter] pretty exciting markets. coming up, investing markets, or emergent ones? this is bloomberg. ♪ betty: this is "bloomberg daybreak: asia." >> confidence among hong kong manufacturers has improved the first since june last year. our next guest says his expectations remain weak, opened towards more fiscal stimulus. he joins us live from singapore. really great to hav

donald trump said a lot of things about janet yellen.ay have the power do a lot of things next year he doesn't appreciate very much. >> and "outfront" now, the president bean ko researcianco . there is supposed to be this wall. is there any concern that he has said these things that he may try to influence the fed or that the fed could try to seek revenge on donald trump. >> well yeah, you are right. that the historical rules of that you don't criticize the fed have been thrown out the window right now. he is criticizing the fed. the believe on wall street is when janet yellen's term ends in january of 2018 we'll have another federal reserve chairman. it won't be her. and we can debate about who it might be. but there are going to be big changes at the federal reserve over the next year to 18 months. >> in the meantime obviously raising interest rates, as phil was explaining. right, it costs everybody more money and that can hurt an economy. trump is incredibly proud of his stock market rally. incredibly proud. stocks had their worst day