. >>> a fresh sign that china's economy is slowing >>> janet yellen is raising the red flag on the u.s. economy we'll bring you her comments >>> and shares of arconic jumping on some deal chatter full details ahead it's wednesday, october 31st "worldwide exchange" begins right now. ♪ >>> good morning welcome to "worldwide exchange" live from london i'm wilfred frost sitting in for brian sullivan let's get to the early market action for you futures are pointing higher. a decent bounce yesterday. we saw markets close significantly higher after what has been a wild ride during the month of october for markets called higher by 165 points or so on the dow. the nasdaq higher by 79. the s&p by 21. yesterday we were up 1.6 for the s&p and nasdaq, 1.8% for the dow. this is the last trading day of the month. markets very much lower. 6% lower for the dow 8% lower for the s&p nasdaq down 11% for the month of october. it looks like we'll end on a positive note. facebook shares are higher the social media company reported a mixed set of numbers. but profits topped expectations. revenues and user gro

we're working to make things simple, easy and awesome. >>> welcome back janet yellen warning that moreerest rate hikes are needed to avoid an overheating of the economy. steve liesman spoke with the former fed chair in washington on tuesday and joins us now with more hey, steve. >> good morning. in that wide-ranging interview at the charles schwab impact conference, janet yellen urging her successor, jay powell, to keep calm and carry on in the face of criticism from president trump. quote, when the president criticizes the fed, yellen said, i do worry it would undermine the legitimacy of the fed and its policies would be questioned the carry-on comment also applied to a recommendation on rates where yellen said the fed needs to raise rates at least to a neutral rateto stabilize the decline of the unemployment rate i'm worried we're headed for an economy that may overheat. those remarks, along with a strong jobs report this morning, payrolls grew by 227,000 in the month of october the street was looking for 180 september payroll revised down 12,000 to 218. we had good employment in goo

yellen also defended the fed's independence in light of criticism from president trump, saying she would do what jay powell is doing which is to keep calm on carry on. >> ylan, thank you 2020, that seems to coincide with where many people think a recession could enter the picture. >> right, exactly. and again that is what the stock market tells you the confounding or the conundrum if you will and see the bond market hasn't said that. the bond market is still predicting a lot of growth next year and not necessarily predicting a recession i know the yield curve is flat but if you look at the 10-year they say there is a disconnect. >> you think there is a disconnect between yellen and powell as well actually not, because powell said that inflation is not in any danger of running away. >> right. >> are we surprised that janet yellen is dovish all she is doing is pressing dove, dove, dove the fed infence god blesser this is an important point. i would expect every major fed official outside of the fed should continue this but everything she said sounds like a fed that wants to be dovish that'

this fed and yellen? >> lou: this fed seems to be needing to learn the lesson that the yellen fed learned at the beginning of her chair ship. that is, you do not raise rates for the hell of it. this is the fundamental issue here. >> lou: the encouraging news is it looks like an improvement over the yellen. powell wants to get back to a normal economy where the fed isn't playing such a huge role. part of that is shrinking the balance sheet. they played an enormous role in the economy people felt like there be no good incentive coming out of the government and we needed the fed to be this active. we don't anymore. were allowing the economy to grow there doing the right thing. a bit. >> lou: can you tell me a time in which the federal reserve has raised interest rates and the result has not been recession? >> there have been many times when we have had higher rates than we have now. in a good economy and market. >> lou: when they begin raising rates what is the ultimate result? >> your say they always kill t

. >>> plus former fed chair janet yellen kept a low profile until now. you won't believe what she said about bitcoin. charlie gasparino, told you so, charlie only off by one single penny with his prediction ge would black out its dividend. a hot shot former goldman guy who says don't sell your facebook stock. we are less than an hour to the closing bell. let's start the "countdown." liz: stocks are shaking off earlier losses and the losses of yesterday as major averages look to snap a two-day losing streak. with just one trading day left in the month of october, the dow is on pace for its worst month since may of 2010. turnaround efforts at under armour look like they are paying off, though. the sportswear maker surging, 25.75% right now after reporting better than expected earnings and an upbeat full year forecast. in its report, under armour said it cut total merchandise by nearly 1% to help cut costs. while north american sales still struggled, falling 2% last quarter, overseas sales were wide awake, jumping 15% and now global overseas sales represent

he sacked janet yellen, who wouldn't be approaching things like this. for tomorrow if you are thinking of putting long-term money away, maybe pull some of it forward that's what i did today. after this trashing, i am sanctioning nibbling on a day when volume was down ten to one, i am okay with dog more buying, the cloud kings, the f.a.n.g'ers. maybe just one or two. i told you, i didn't like the market but the time to start buying may be upon us, slowly but surely because now everyone is getting upset, everyone is panicking a vicious correction is a terrible thing to waste. we have to understand the companies will not be as bullish as they were because of tariffs and higher interest rates, and bullish market and a lot other things wi we will have to be selective buy small, buy quality and nothing less i'm not saying the bloom is off the rose when they are all reflective, they can be more aggressive. especially once the fed seems to be focused more on the rear view than the forward so let's take some calls remembering that we have been through 2008 and c

yellen also spoke about the u.s.eficit calling it a major problem and adding that the national debt is on what she calls an unsustainable path. her words on this, if i had a magic wand i would raise tacks and cut taxes and cut retirement spending yellen also spoke about tariffs saying she is concerned about the impact they could have on investment spending over the next year. but she only sees a small and temporary impact on inflation. yellen also defended the fed's independence against criticism from president trump she says she would do exactly what her successor jay powell is doing, which is keep calm and carry on let's talk more about the broader markets and the economy. joining us is rob martin our guest host is still here also let's start with these words from janet yellen and the month of october you don't think what happened here is because of the fed what do you think happened >> if you look at how fast rates moved, the markets had to readjust i think more than anything else you had a couple things. one is t

i'm not sure the chart can tell me that maybe the crystal ball could if we listened to what janet yellen is saying, she's certainly more bullish on the trajectory that the fed are moving in at the moment in terms of hiking. i think there is worries about the wage inflation and the stock market seems to be kind of worrying about that as well at the moment so, you know, we are late cycle. we know that have we reached peak profits is it really this wage inflation which i think the market is expecting. maybe the stock market started to expect that >> this gets us nicely into a conversation about bonds a bond specialist was talking about the flattening curve despite a weak and a half where we saw a steepening of the curve. you called it the anaconda moment you want to explain what that is. >> anacondas are big, scary snakes that sleep for a lot of time a bit like the 30-year treasury yield this is a fairly frightening chart because you have a resistance level about 3.25. we broke through that. we're now at sort of 3.31, 3.32. you have millions and millions of u.s. mortgages dependent upon thi

during when president trump wasn't president and complaining that janet yellen keeping rates too low for too long and then put in jerome powell on a similar schedule to what janet yellen was on and maybe even more aggressive and the president doesn't like that but presidents don't like interest rates going up. >> it doesn't mean -- sue, you can speak to that, that investors care because if you draw a comparison, there's steve mnuchin saying this is normal market activity though when i saw the president speak yesterday and go after his own fed chair i thought, man, this is bad news. do investors listen to what the president says? >> i think some investors do but i also think that investors are becoming a little bit numb because the president weighs in on so many different things. and they're used to getting a comment almost constantly from the president about this topic or topic. and, you know, if you're a saver used to be you were getting nothing for the money and now with interest rates up a little bit, you are not getting a lot but you're getting more than you were say, six months

yellen go he said she was doing a fine job but i guess he wanted his own person in this case a white dude but it seems that jay powell the president's pick was confirmed by the u.s. senate looks to be just like every other traditional republican and the president says the feds going crazy there loco john what do you make of it. well the president is a great guy right let's ask if he'll tell you he's a great guy and he does seem to be very fond of people who look exactly like him older white men in deference to the rest of the economy who aren't looking like kim whether it's gender or and color now you know when everything is going gangbusters of course he's going to take all the credit for that and when things start coming a rider not performing just the way he thinks they should under his magical watch then he's going to be mad at you and blame you for this as though it's your fault at the end of the day we give too much credit and too much blame to the president or the leaders it's the primary driver is the consumer and that's the behavior we need to watch and danielle same sort of

. >> coming up, fresh comments from former fed chair janet yellen on market volatility just crossing big technology remains under pressure overall a terrible month mike santelli is seeing a potential bottom he is chki tecnghe charts on the telestrator, coming up let's begin. yes or no? do you want the same tools and seamless experience across web and tablet? do you want $4.95 commissions for stocks, $0.50 options contracts? $1.50 futures contracts? what about a dedicated service team of trading specialists? did you say yes? good, then it's time for power e*trade. the platform, price and service that gives you the edge you need. looks like we have a couple seconds left. let's do some card twirling twirling cards e*trade. the original place to invest online. your company is and the decisions you make have far reaching implications. the right relationship with a corporate bank who understands your industry and your world can help you make well informed choices and stay ahead of opportunities. pnc brings you the resources of one of the nation's largest banks, and a local approach with a

i take a janet yellen approach i thought janet yellen was a fabulous fed chief jay powell appointed byresident trump after firing janet yellen. >> because she was a democrat and he was a republican. >> she was an empirical thinking who liked to worry about how workers do i'm not saying jay powell has a cruel black heart but janet yellen was sensitive to the idea that maybe working people should make more money. i think the president made ill-advised comments periodically he seems to do that but that was wrong he did it because he hurt his own case you send out guys like larry kudlow to say maybe it would be good if you walk it back that's why you have people like larry kudlow the president has to stay up here he has to be what i call presidential not like lyndon johnson, you know that lyndon johnson play was good bryan cranston, i don't know if you saw that but you can't be like that president. you can't be like president nixon. my mother was a saint, but they'll never write a book about her. one of the best closing -- you don't have me to kick around anymore. >> i remember that line,

i think janet yellen was a dove the whole time. neil: we'll see.et you know here is what donald trump said about that whole situation back on november 15th, referring to janet yellen. she's very political and is not supposed to be political. that's not the way it's supposed to work. what he's saying right now is except now that i'm president of the united states. more after this. . . neil: keep an eye on 10-year note. yield is falling. ashley webster ashley: president trump's economic advisor, larry kudlow says a possible meeting between president trump and president xi of china is under discussion. hello, everybody, i'm ashley webster, in for trish regan today. welcome, everyone, to

i really miss janet yellen what she would do is say, you know, i need more input.l look at the markets maybe we should make some calls. what is that ppg where is that going? she was a student. okay she was a student. she wasn't a teacher she was a student. she learned from many people and she had no hubris and she wasn't a rookie. i don't like what happened at the fed, because like ben bernanke in 2005, we've got to put a stop to this. >> if one of the chapters in the lesson book is the economy conference calls during this earnings season -- and we hear more like ppg when there talking about rising costs does it make jay powell less or more likely to raise rates you could look it as this is slowing the economy down, this is a real impact on the stock market and we're going to step back, or you can say it is inflationary >> listen, steel costs have gone up so much it no longer pays to build. does that stop the economy how about jay powell he should watch the show tonight. janet yellen used tod get every input. you know, you got to listen to barry stern. he's saying

he said janet yellen is keeping them too low to protect president obama. today, you get to compare and contrast. listen. >> i think the fed is mistake. i think the fed has gone crazy. >> we have a fed that's doing political things. janet yellen of the fed, the fed is doing political -- by keeping interest rates at this level. liz: with the shoe on the other foot now, is the president calling the fed loco a disaster in the making or right on the money? interest rate king andy brenner takes on the guy never afraid to throw up a red flag, peter schiff. that's next. don't go away. jardiance asked: when it comes to managing your type 2 diabetes, what matters to you? step up to the stage here. feeling good about that? let's see- most of you say lower a1c. but only a few of you are thinking about your heart. fact is, even though it helps to manage a1c, type 2 diabetes still increases your risk of a fatal heart attack or stroke. jardiance is the only type 2 diabetes pill with a lifesaving cardiovascular benefit for adults who have type 2 diabetes and heart disease

. -- ais is janet yellen little deja vu, go back to 2015. the most telegraphed fed hike in history and janet yellen didn't he year trigger until later because of international considerations and financial conditions. we need to see that more materialized in u.s. data. just think about stock markets. two days ago, the u.s. stock market was trading similar levels to libor. now, there are some considerations in tightening financial markets. yvonne: have we reached clarity on where u.s. yields will settle at the moment? that is important on the em side of the world and for your bread and butter. andre: for us, yes. we think they have peaked but not treasury yields. for us, it is more about the dollar. that is much more unknown, especially with the fed not holding off and still raising rates. as long as the dollar continues to appreciate. rishaad: this is against the backdrop of the trade war and we don't know the consequences down the line, because we can have all sorts of estimates, let's say half a percentage point off growth, but that is look

of '18, a lot of positive fiscal activity any type of fiscal activity really ben bernanke, janet yellengging for real fiscal policy the alarm clock rang, we started doing something to help the economy, the real economy, the gdp type economy now, well, gains and pains you know, you can't go forever it was always a matter of time many believe that the central banks did what they did to pull the bandaid off slowly no matter how you slice it, the growth recently in the u.s. and some parts of the globe is the real deal. it is built on things that aren't a big deal and now paying the price. many say powell, it is your fault. shoot the messenger. nobody argues with central bank santa claus, whether it is janet yellen, ben bernanke, mario draghi after every big parade, there's a guy with a broom mr. paowell was the lucky guy with a brook what would we do, see mario draghi to put rates at minus 200 basis points yeah, that will fix everything >> rick santelli thank you. >>> up next, more from the apple event in brooklyn. jon fortt wraps up everything you heard this morning meantime, dow is up nea

janet yellen very strong in the financial times saying trump does have the potential to undermine the fed. how much should we worry about that? >> so i think people outside the fed, as appropriate, should feel free to comment. in my position, i will not other than to say my job is to do economic analysis and make jealous -- judgments without regard to political considerations or influence. i think criticism comes with the territory. my mission and our mission at the fed is the same. >> are you being setup to be the fall guy for any kind of economic shortfall? it is very important i not worry about that. i think we are in a very challenging situation that you and i have talked about before. we have healthy growth and the a's states -- in the united states but fiscal stimulus is part of that growth. wane in 2019o and 2020. the trick is how to get the judgment and balance right toward moving toward a neutral stance but being -- avoid being predetermined or rigid in terms of what that destination is. that is complicated enough without me worrying about other factors. >> let's talk about t

charles: keith, janet yellen's first time hiking rates. it was december.of a market in history, first two weeks of january. many people believe that showdown that todd is talking about between the federal reserve and wall street, that wall street won and from there on out, janet yellen probably held back on decision making? >> boy, i think that is a very interesting observation on both sides. you know to me the fed lost the plot a long time ago and i don't think their models reflect, a, the current state of our economy. they certainly don't reflect how real cash works and i think traders will always win. this illusion the fed sets policy is really just an illusion. people working with real money in a bond market five times the size of the stork market, that is where you assess risk and return and do it in real time with real dollars. charles: jon, the fed takes credit in their own way saving the economy as much as they can. listen, there will be a book coming out by paul volcker soon. maybe he will mention that as well. let me ask you, john, the federal re

this week, janet yellen joining people concerned about the rise of leveraged loans.aid i am worried about the systemic risk associated with these loans. there has been a huge deterioration in standards. the big issue she has chimed in on and many others have as well. golder,th me, rachel marilyn watson, and robert tipp. quote, i raised that wondering whether some current and former fed officials are trying to tell us something. the guiding light seems to be worries about financial wobbles. >> they are operating in a world of uncertainty. but they do know that what has ultimately cost the average downturns.e the big the crashes are caused by the bubbles. those are the ones where the slowly.society recovers it was probably five years ago she was warning on biotech, right? i think it behooves them to kick the tires and see if anything rattles. is what willhat extend the expansion, not seeing the widespread rapid lending versus appreciated assets, the real estate bubble, or any gigantic sector bubble, you are not seeing that but they continue to raise rates. i think that

shery: it was also interesting to hear from janet yellen saying that that's not wise when the presidentinvolved in the fed. an interesting conversation is happening. amanda: a reminder that g qe go is where you can find the charts on this show. they are there at gtb. this is bloomberg. ♪ caroline: this is bloomberg markets. in moments, the federal reserve will publish the minutes on the september meeting. will officials raise rates for a third time? scarlet: let's get a quick check on the markets as we await those minutes. there's a mix rate overall, the 10 year yield is a stuck, and the dollar is firmer. and crude oil is lower. let's check in with our reporter. >> the big news is the rate hiking path ahead. a few participants say they favor modest julie restrictive rate policies. a number say they could see rates ending up above the long run estimate temporarily and only a couple said they would not favor a restrictive policy unless they see an actual overshooting in inflation and overheating of the economy. this comes as the fed continues to deemphasize the neutral rate as the guide f

mouths china's a good model ok probably being talked about in the in a minute or so in here so janet yellen member former fed chair she's talking about the next big financial crisis she's just suggested when it happens the fed to start buying stocks in the open market. i guess what we've seen a switzerland in other places yeah it's all down this well it's shocking him by taxing trap of the market first evolved it makes their policies look good when we know that their policies really didn't do much because everybody points to the stock market is this is this is a measure of a good economy we are not allowed to buy or sorry our central bank is not allowed to buy stocks but the other central banks do many of them do and they're all in cahoots as we know from you know me but among others so so the fact that they are propping up our stock market makes our central bank like the whole concept is shocking because one of the biggest cheryl is an apple computer is the swiss central bank for example for example yes so and they could buy up anything they want in theory because they've got the power of

why not replace janet yellen >> his predecessor rarely and spoken in terms of just discussing it. >>e sounds like harry somers >> i have to deal with the facts. i mean the facts are getting in the way of this story. employment is good how long can that last i have barry stern on tonight. >> he's a smart fellow steel is not worth building. well, if it is not worth building then what do people in building do? they start building pipelines to get natural gas? at this point of the president, there is no inflation. >> there is also inflation results in tariffs >> right, that's amazon. >> every time you are not speaking to somebody who are exporting some extent or things that comes from there or china may figure out how much is passing along. same thing, housing starts to slow and starting to see it. >> they're seeing slowing in their own sales as a result. >> our good friend who sits there in the old days but not until he got into the housing business, he decided to go in big on denver market it is down 30% in the last six months if the oil and gas measures on the ballot is won by those o

i want to share what former fed reserve chair janet yellen said. if i had a wand i would raise taxes and cut retirement spending. she also called it unsustainable. janet yellen and jay powell are on the same page. i'm asking where the tea party republicans? where's fiscally responsible republicans who railed against this kind of spending in previous years? what are they saying now? >> well, if you're calling the tea party really started because they had a problem with the housing bailout and they felt that people who didn't make good decisions get bailed out by the government and then, you know, the spending part of it sort of glommed on later. i don't know. i think their interest is on other things right now like immigration and the caravan and that sort of thing. they like the tax cuts. they think we have a spending problem. not a taxing problem. but you know what? low unemployment, nobody cares. eventually we'll care but i think you see no evidence on the republican side and if i look at the various democratic candidates and proposing, potential

. >> remember when janet yellen back i think in 2016 said that interest -- she alluded to interest rates rising when hillary clinton was running against trump, but she didn't put that into effect. i think that was because it would be unpopular on her reign. >> i think that -- >> but she alluded to it. >> i think it is one thing for yellen to allude, it is another thing for the president to. >> i remember back in the day george bush wrinkled his nose too. i just think president trump, i don't know why you're doing it. >>> up next, remember the russia investigation? i certainly do. sources tell nbc news that the president trump's legal team is preparing to answer a list of written questions put together by robert mueller. is this a sign that the investigation is beginning to wrap up? i'll a no. but we'll see. ( ♪ ) everybody wants a new, different, better world. here's to the people who do what it takes to build it... to keep it running. the people who understand no matter what the question, the obstacle or the challenge, there's only one answer... let's do the work. (engine starts, hums)

. >> she made the announcement through her friend jessica yellen on instagram. it showed her picks for the midterm elections. >> these are the recommendations of amy schumer, one of the most consistent of news, not noise. now, read all the way to the bottom. you'll see there's some news down there. congratulations, amy. >> and the very bottom of the list reads, i'm pregnant, amy schumer. she married her husband, chris fischer, earlier this year. >> congratulations to them. >>> unconvent >>> people living in san francisco's neighborhood. >> especially the elderly and handicap community is saying they have a hard time getting around them because the dog's leash is in the way or the group ofs d eyet mo pavg ahme. of requesting nehbodrowns hertuents call poli complain. >>> the newest vehiclisce cream truck for patrol. kids in silicon valley were the first in line. they are using the ice cream truck to strengthen their relationship with the community. officers will give out free ice cream at different locations like parks, schools and community events. >>> let's get

when janet yellen, the former fed chair, took rates to zero, that was the punch bowl. she was taking the markets and holding them in her arms like a baby. >> so bernanke and -- >> saying to the markets i'm going to hold you and protect you until you can stand on your own. now, here we are in the trump regime when president trump, when sarah sanders love to say this is the strongest economy ever. so if that is the argument that they make, of course interest rates should rise, no longer should the market be held by the fed chair and protected with rates so low. >> of course. and i think that's a really important point that you make. there's no reason for us to have emergency level interest rates if gdp is 4%, if you annualize this most recent quarter. if you're going to be somewhere even north of 3%, why would money be free. why would we want artificial stimulus. so that's been a process playing out for two years now. the fed has been gradually raising rates. it's entirely in keeping with what the fed's been saying and doing for ten years. which is using the data to just

the fed under janet yellen was lowering and keeping rates low. in addition to that, ron, there's the trade war stuff. markets have been going for a long time. sometimes due for a pause. >> when they were up, the president referred to them as a bubble likely to crash if he didn't get elected. >> now he said this is a correction we have all been expecting. what's the truth as far as you can divide? >> a combination of things. you point out the trade war will slow the economy. china has slowed down dramatically. their markets down 30% from the recent peak. we are seeing weakness in the china economy, we have seen housing and auto go lower amid fears those two sectors at home slow down. you add to that rising rates, worries about a trade war, price pressures, tariffs put prices higher, and wide number of influences that have upset the market. the trade war could effect t thk -- third quarter profits that they report tomorrow. if those are disappointing, another factor to refrain stocks in the days and weeks ahead. >> people that invest, they probably

janet yellen was the guy that kept rates down and he's the one that fired yellen.very time i think about when i fire yellen for powell, i feel what a mistake i make. that would involve him making a mistake and that's not allowed it is like reverse camelot down there. he can't admit he made a mistake. >> and at least according to the way the journal describes it of the impact of the tariffs, they were for a couple of articles saying these tariffs don't amount much of anything. >> we heard of that before, he's going to be too bothered and wilbur ross told us in march i continue to hear and you run into somebody and manufacturing company. i still wonder if it is going to end up creating any jobs what i continue to hear is so many of our manufactures still importing from china, it is still unclear of what's going to have tariffs on it and what it may not and what beginning of next year and whether you have to change your supply change and the chinese starting to sell of europe and manufactures there and you buy something else from. they say it is confusing and very dif

their first child.er yey she broke the news on the instagram story of friend and journalist jessica yellen. at the end of lists congressional candidates the line i'm pregnant appeared. she was recently arrested for protesting the confirmation of judge brett kavanaugh to thesu eme court. >> we're just days away from the 43rdarine corps marathon. tens of thousands of people will participate i that 26.2 mile racesun ay. this is video from last's ye marine corps marathon. metro will open two hours early on sunday. that means 6:00 a.m. and as you can imagine there will be a lot of road closures too. those will start around 3:00 in the morning. wee posted mor information about the closures in the nbc washington app. just search marine corps marathon. >> i have a lot of admiration for any marathon -- maybe one year i'l do it. and then i think, maybe not. >> no. >> i have to tell you, i was out there last year. >> out there not running -- >> we didn't have to add that little detail. >> i t was going add it, if you didn't. >> i was at the star line, and i was at the finish line. how i got to those

data dependency is what made janet yellen so successful as a fed chair. powell would bo doh well to follow her playbook. let's see what the data says and otherwise talk about something else when pressed on his 2019 game plan. now it's not the fed's job to ensure higher stock prices i'm not saying that. but investors are right to be concerned when the head of our central bank starts talks about the need, perhaps, to overshoot with rate hikes. maybe he could try to shoot just the right amount of course, it's not just the fed. the strong dollar is hammering our companies that do a lot of business overseas. it would be nice if powell would acknowledge how inflationary that is, though. long-term interest rates keep rising, something that tends to crush dividend stocks because bonds become more attractive while also hurting housing because mortgages are getting more expensive and let's not forget the tariffs. now i see housing, autos, and now after this week maybe even retail slowing so it's entirely possible the fed is ahead of the curve already when it comes

janet yellen joins the course of concern against leveraged loans.razil heads to the polls sunday for a presidential runoff vote. the lead is narrowing, but he s partyeads the worker candidates. he is seen as the trump of south america but market friendly. vonnie: we are up 20% since june when he looked like he might be the winner. clearly, investors are looking at this on a positive investor. we will have more on that later in the show. vonnie: let's get a quick check on the major averages in the united states. we are well off the lows. we had the lows around 11:00 this morning. some buyers coming in on the low point. especially form tech which had been down 10% or more. the dow jones industrial average down 1%. the dollar index is giving up some gains on the day. i know you are looking at individual stocks that are moving. amanda: i am. i want to start with the internals of the s&p 500. it has been interesting to watch this today. we had every single subsector moving lower on this market. you can see some big moves. consumer discretionary at the bo

manus: i think i'm going to go linecript because i read a from janet yellen. the president of the united states called the fed crazy. he said the fed was raising too fast. my last guest said that was hogwash. f thehave to pace -- hal pace of previous euros. janet yellen lambasted the president in terms of him having a go at the fed. what you have to say about president trump and heard it on -- erdogan in terms of monetary policy? mark: president trump is not arguing lower rates will lower inflation. in turkey, it is different. very unorthodox economic views, believing inflation will only be controlled by lowering rates, which is unconventional. he has much greater authority for appointing people for overseeing the bank. so i do think there is a slight bit of difference, but that does not ignore the fact that trump is putting some kind of pressure on the fed because no one wants to be blamed and at the center of the spotlight if this turns into a bigger equity rout. nejra: since we have moved on to rates, let me ask you, as we are looking at the fed minutes as

davos daughter yellen now works for her father's company she's giving a presentation on certification delays in areas that have been cleared of mines without that state certification the disposal companies can't collect the payment that's due to them. favorably well i mean. the problem is that cronyism and nepotism are rampant in the demining authority. officials give jobs to analysts lovers sisters and so forth. almost half of all the agencies employees have some sort of family connection. even though they're working in jobs where they're responsible for saving lives. because . diver is convinced that those people were hired simply because of who they know not because of their professional expertise. the country's parliament has twice considered new legislation that would expand the scope of mind hearing operations and also authorize the use of drones but it hasn't been approved because m.p.'s from the various ethnic groups have blocked it bosnia is politically paralyzed. this is the main office of the state mine disposal thorazine sorry. we have an appointment to meet with the inter

this week, janet yellen joining people concerned about the rise of leveraged loans.d in an interview, i am worried about the systemic risk associated with these loans. there has been a huge deterioration in standards. covenants have been loosened in leveraged lending. it is a big issue she has chimed in on and many others have as well. still with me, rachel golder, marilyn watson, and robert tipp. robert, i raised that quote because i am wondering whether some current and former fed officials are trying to tell us something. the guiding light seems to be worries about financial assets and wobbles. robert: they are operating in a world of uncertainty. but they do know that what has ultimately has cost the average american, and even more than that, are the big downturns. the crashes, which are caused by the bubbles. those are the ones where the bulk of society recovers slowly. instead of being very cautious. it was probably five years ago she was warning on biotech, right? i think it behooves them to kick the tires and see if anything rattles. but i think that is what

. >> former federal reserve jail janet yellen made comments on the enomy speaking at the schwab impact conference. she said she is concerned the economy couoverheat and that a couple of more interest rates increasesssre ney. she also said that the market volatility reflects the uncertainty surrounding the groebl outlook right now. >>> the home ownership rate edged higher in the thirdte qu this as younger buyers entered the housing market the first time. according tohe census bureau, the totals share of american household thatwn o home ifrmgd upo 64.4%. separately home prices rose 5.8% in august compared to a year ago and that is t according the kay schiller home price index. that is the first time in a year that the index has come in below 6%. >>> well with the midterm earthquakes just a week away, the is one issue investors across the political spectrum will be thinking about going into the voting booths. us what it is. >> come on down you are the next voter. >> it's one thing that voters hfrom b political parties agree on. concern over the rising nat debt. that's the upshot of a new

he accused janet yellen of all people of doing this because she was hooking up obama. >> right. >> fast forward, here we are, and i use the president's words, not ours. >> yes. >> strongest economy ever. things are so big and beautiful. and he takes credit for it. >> that's when the fed and others start to move interest rates up. >> which is what they're naturally supposed to do. >> all right, so the problem might be with the pace at which this is going. joining us now is john harwood, cnbc's editor at large. john, as we were just discussing, the natural course of events is that as interest rates go up, the market will slow down. what we saw last week was a fairly sudden surge in what we call bond yields which are interest rates. there are some people saying we've got more to go. so interest rates are going to keep going up. what does that mean for people with stock investments right now? >> well, people with stock investments are going to see risks associated assets, unless valuable, and people being drawn, as you guys just indicated, to safer investments that now pay a little bit more

melissa: yeah, james, bottom line is janet yellen to blame for all of this? that would be pretty convenient? >> i would say among others but what is all this? i think things are working out. this is a bump on the road back toward a real economy that is thriving right now. melissa: true. >> i think the transition from a fed-driven economy with a big anchor from washington, more of an economy allowed to proon its own is really working. so i don't know if we need to blame anybody. david: gary kaltbaum, when i see the people have been talking about gloom and doom in the market for years now, waiting for a moment like this to happen, gloating, people like dan shaffer, suggesting the charts look exactly the way they did in 1937 during the great depression and everything, look there is a big difference between chart watchers who look at what a market did at a particular day compared to what it did during the great depression and looking at the overall economy. where the market is in relation to the overall economy. back then we had fdr with quasi-socialist economic

when donald trump was campaigning for president he was critical of janet yellen and the fed for keeping hand picked guy heading the fed, jerome powell, and he has called him crazy, loco and out of control. i don't think jerome powell has ever been called out of control by anybody. what's up? >> i don't think he's out of control either to be frank with you, but donald trump has always liked low interest rates. he believes that's good and stimulative. in his previous incarnation he was a builder and builders like to borrow money at lower interest rates so that's fully understandable. he has wanted lower rates and when powell moved the rates this time and it happened to coincide with a modest, reasonable fall in the market, i think he -- i think he criticized powell politically to a large extent. >> but he used to tweet janet yellen about why won't you increase interest rates? it's hard for savers. so he has changed his position on this. >> yes. >> at least when he wasn't president. >> it does matter whether interest rates are 0 or 2.5%. the level of interest rates does matter but you're c