reserve and federal reserve chairman jerome powell. you can make what you want of the nature of those attacks, but if you are going to play that game, if you are going to get into battles like that with washington, washington is going to find ways to fight back. i think that's what they have done here with herman cain and steve moore. you want to attack us, then try to send up a nominee to the federal reserve board. neil: what if it was a vanilla nominee, would he or she still deal with the same issues? >> on that point, i think the president should quickly and immediately indeed appoint a heavyweight to the federal reserve board. he should appoint someone like shelton, a respected monetary economist who has written on this subject for "wall street journal." i think she agrees by and large with the president's position on these things. but he should not hesitate to go back and nominate someone -- neil: don't you worry that those who question the wisdom of, you know, pavlovian hikes in rates when the economy picks up, the president did

large reserve holding banks at the federal reserve. satisfying liquidity requirements. from this financial stability standpoint this regime is also much safer. when the balance sheet runoff in a tober, the asset holdings declined to around $3.7 trillion in the process will have run its course. we have the potential to provoke considerable financial market disruption. indeed, the difficulty of exiting from asset purchases has been a concern in the committee and in congress with some observers anticipating that a run down of the fed balance sheet would spark financial bedlam. unfortunately things have gone quite smoothly. my hope was that it would be about as interesting as watching paint dry, and it has mainly worked out that way. a smooth exit means there should be less resistance in the future of the point asset purchases again. moving forward one of the most important concerns now facing the fed is how monetary policy can respond to a future downturn. this is the focus of monetary policy framework and communications review being currently conducted by the fomc. it is

he asked me to serve on the federal reserve board. there are seven members of the board of governors on the federal reserve. when thete honored president asked me to do this. what happened was, i kind of was naive. i thought there would be a debate about my economic ideas and my philosophy. i worked with the president on the tax cut and his other initiatives. about my economic ideas. it was about this campaign. there were six or seven full-time investigators looking at every aspect of my life. i had probably written thousands of articles. i've been on shows like this. media appearances over 500 times. given hundreds of speeches. people would take out a sentence or something i had written. in some cases, 20 or 25 years ago, and built this case against me that i was sexist in this or that. some of the columns i had written were humorous. i'm not playing the victim here. i look back at some of the things i might have written 25 years ago, people know that i am irreverent and politically incorrect. some of the things i said were insulting

i didn't know what quite what it was, but then it was the federal reserve. my father had been talking about interest rates and how they go up and down, and i found this government entity that sets interest rates. at a young age, 14 or 15 years old, this notion of being associated and understanding the fed became one of the motivating forces in my life. david: for many people, they would not think that is a straight line. that is not a normal career path. i'm not saying you necessarily said, i want to be a federal reserve governor, but did you have that direction in mind? roger: i always thought it would be interesting to be a federal reserve governor, but since i wasn't going to be an academic economist, it wasn't an obvious path. two things happened in my life. one, i kept the fed policy in the background as something to read. then, i became interested in the law and regulations surrounding financial services firms. what took me, got me into being a credible candidate was an understanding of monetary policy and an understanding of bank supervision and regul

brown: i look at some people i have known in the federal reserve. janet yellen, the most recent chair who just retired prior to jerome powell, she came out to cleveland, ohio to the alcoa plant, the old aluminum plant. she and i spent maybe two hours on the floor of that plant in cleveland. and i'ved to see, taken another economist from the obama administration out to an auto plant in ohio. they need to see what workers do in this country, whether it is hospital or hotel workers, people working for tips or mid-level people working for salaries, or swiping a badge or taking care of families. the dignity of work means all workers. i just went to see these numbers of the fed and their background spend some time on shop floors, construction sites, hospital rooms so they can see the kind of work most of america does outside of washington. it will help them see the economy through the eyes of workers, not through the eyes of wall street and the sequestered halls of the federal reserve. david: to pursue these sorts of politics you feel very strongly about

federal reserve chairman, federal reserve president, dallas federal reserve president robert kaplan. appreciate your time. dagen, we'll throw it back to you. >> thanks, edward. dagen: edward, thank you so much as well. selling pressure is easing. i don't know if it had anything to do with the interview but the dow is down 39 points. >>> a fresh poll finds american as confidence in the job market hitting a record high. what does it mean for the economy as the 2020 election season heats up? more next. ♪ it's tough to quit smoking cold turkey. so chantix can help you quit slow turkey. along with support, chantix is proven to help you quit. with chantix you can keep smoking at first and ease into quitting so when the day arrives, you'll be more ready to kiss cigarettes goodbye. when you try to quit smoking, with or without chantix, you may have nicotine withdrawal symptoms. stop chantix and get help right away if you have changes in behavior or thinking, aggression, hostility, depressed mood, suicidal thoughts or actions, seizures, new or worse heart or blood vessel problems, sleepwalk

reserve, including federal reserve chairman jerome powell. let's listen. >> there's a view on wall street at, somehow, these people in washington at the fed are some oracles from god, and they've screwed up so many times. i mean, what kind of idiot -- i have to say, this was one the most idiotic rate hikes ever. i do think, you know, jerome powell shou really think about whether he's up to. this j i mean, we're talking about trillions of dollars of losses because of a boneheaded play by the fed. look, i think powell has beenmp inent so far. if the fed raises interest rates tomorrow, they should all be fired for economic malpractice. >> ooh! h >> we you been so critical of chairman powell. >> so, by the way, did you -- it's so interesting to look atau those clips, b did you notice what the dow jones was at after they, you know, raised those interest rates? 21,800. now it's at, you kno000. and i've been vindicated by this. rgaret, it's an importan point. this was a big boneheaded play. and the reason i've been vindicated is -- three weeks later

federal reserve lowered rate it pays for bank reserves. that is done to keep the target federal funds rate within the range of 2.25 and 2.50% t was in upper range so they lowered that. this statement was unanimous, charles. wait and see. still the word of the day. patience for the federal reserve. charles: edward, thank you very much to appreciate it. here to help break it down, former fed advisor danielle dimartino booth, lindsey piegza, hal lambert joins us as well as money map press their chief technical strategist dr barton. lindsey, let me start with you, so far anything you heard jumping out at you? >> statement was pretty much as expected. the rate remains unchanged. justifying their position along the sideline. they maintained that relatively optimistic view of the economy. what is really of importance as we watch the press conference. we'll look for the chairman's assessment of this seemingly solid growth against the backdrop of this disinflationary environment and what that means for rates going forward. that really is going to b

the federal reserve board. your economic policies have been a spectacular success for american workers. trumpenomics has been vindicated. i'll go on a limb and call that a love letter. >> the federal reserve is not meant to be staffed with people who tell the president they like his thing. >> whether to expect a position on the federal reserve board has nothing to do with it. >> the u.s. state department allowed at least seven foreign governments to represent property in trump world tower in 2017. >> a reuters exclusive said this was done without approval from congress. it sets up a potential violation of the constitution's emoluments clause. that bans u.s. officials from accepting gifts or payments from foreign governments without congressional consent. he's already the subject of a lawsuit by congress democrats accusing him of violating this clause. >> reuters julia hart broke the story. julia, who are the countries that have rented these properties and how did this come to be found out? >> i obtained the doc

into the new york federal reserve which ta kes into accou nt the new york federal reserve which takes into account the higher prices paid by importers and consumers over in the united states. to get in touch with me, i am on twitter and this is the hashtag if you are following us on twitter. we will see you shortly to take you through some of this paper is stories. —— of this papers' stories. —— of the papers' stories. a massive increase in cases of mumps has raised fresh concerns about the take—up of the mmr vaccine in england. parents are being urged to make sure their children have had two doses of the vaccination, with the latest figures showing measles cases also remain high. here's our health correspondent, james gallagher. mumps isa mumps is a viral infection that causes large painful swelling is in the glans on the side of the face. in rare cases, it could even lead to viral meningitis. teenagers heading off to university of the most vulnerable and outbreaks have been seenin vulnerable and outbreaks have been seen in nottingham and cardiff this year. there were 795 c

is the federal reserve concerned about the inversion of the eff over the ioer? are you concerned about this inversion? richard: i wouldn't use the word concerned. what we understand is there are major changes in the u.s. financial system in the last decade. one of them that is very relevant to this particular topic, for a variety of sound reasons, banks hold more liquid assets than they did before the crisis. reserves are not a unique liquid asset. treasury bills are also a liquid asset. one of the things we have learned that the fed as we have operated our current ample reserve system is that the desire of banks in the u.s. to hold a large quantity of reserves for liquidity purposes is stronger than we would have thought a couple years ago. what that means is even though the size of the balance sheet is certainly large, much larger than before the crisis, we are at a point now where in the federal funds market, the market clearing funds are it, no longer always going to be equal to that level. a basis point or two above, something we watch. as i said, we have m

it's business as usual the federal reserve seems i've taken that to heart it's held on to the status quo and left the key enter it interest rate unchanged and what it calls a patient approach amid conflict thing signals in the u.s. economy the fed has been criticized by u.s. president trump who says a rate cut would be better for the economy meanwhile the u.s. private sector added two hundred seventy five thousand jobs in april more than the market expected but analysts warn the robust figure could be overstating the economy strength. he joins us now from wall street. is the fed self described a patient approach likely to hit any snags given that the white house's push pushing for a more aggressive policy. well actually there is talk here on wall street that the next step by the federal reserve actually might be a rate cut not immune and but maybe by the end of the year and that is in general surprising because overall we got pretty solid economic news in the past couple of weeks and months so there is a certain sense that maybe all the criticism from a white house did have a certain

i would just not have the federal reserve do anything. neil: so what the president was talking i believe yesterday, that the federal reserve should cut-rate by a full point, i'm sure he wasn't talking in one fell swoop, that it should resume quantitative easing, idea of buying any treasury, note, and bond the fed can get its hand on forcing lower interest rates he was critical of that under barack obama, you think that would be misguided? >> i think it is a terrible idea. first, again i think this notion of stimulus whether through spending or through the monetary system is rarely a good idea because it actually stops the economy from adjusting in a healthy way. but the other thing is that some of the things, even people who are believers in stimulus know there are conditions under which the stimulus will work or not and one of this, economy has to be in recession or at least in a serious bind, and right now we're not. the economy is growing. i don't exactly know even if the federal reserve did, it would confuse signals it, would create a

reserve, jerome powell and the board of the federal reserve being independent. they do worry about that trump may be appointing political types to the board, like a steve moore or herman cain, but i did ask former g.o.p. house majority leader, eric cantor, now an investment banker, i said york -- i said, you know, is there kind of an upside here? he basically said there is. >> what do you think about what he's doing with the federal reserve? >> you know, listen, every president going back forever, i remember in the reagan administration, i'm old enough to remember h where the supplier ciders -- supply siders were up in arms about volcker. the nominees, herman cain, i think he's a very nice guy, steve moore is a friend of mine, they seem a little overly politicized. don't you agree with that? >> i can only say if you look at what the president did, it was pretty crafty. if you want to see these rates come down and not go up, whether they stay the same or go down, to go in on public attack, it puts the federal reserve board in a position where, one, they don't wan

it's business as usual the federal reserve seems i've taken that to heart it's held on to the status quo and left the key entering interest rate unchanged and what it calls a patient approach amid conflict thing signals in the u.s. economy the fed has been criticized by u.s. president trump who says a rate cut would be better for the economy meanwhile the u.s. private sector added two hundred seventy five thousand jobs in april more than the market expected but analysts warn the robust figure could be overstating the economy strength. he joins us now from wall street. is the fed self described the patient approach likely to hit any snags given that the white house's push pushing for a more aggressive policy. well actually there is talk here on wall street that the next step by the federal reserve actually might be a rate cut not imminent but maybe by the end of the year and that is in general surprising because overall we got a pretty solid economic news in the past couple of weeks and months so there is a certain sense that maybe all the criticism from a wide tulsa did have a certai

relates toquestion federal reserve policy. my question is, is there any concern among the administration that the failure to raise interest rates, and i think president trump has talked about lowering interest rates, is that high levels of corporate debt? there have been news reports regarding corporate debt being a bubble. artificially -- question, part of my cincinnati, ohio rules. guest: thank you. i think of what he was referring to, did he say cincinnati, ohio rules? column manyn this years ago or i said, cincinnati and cleveland are the armpit of america. i have always had a rivalry with those cities. that got picked up. let me be clear, i love the state of ohio. i wrote a column saying ohio is on a come back. you go to cincinnati and cleveland and columbus, ohio is making a great comeback. one of the reasons ohio is on a come back is because of the shale gas revolution. people are behind the green revolution, the green energy -- host: degree new deal. -- degree new deal. guest: this would destroy hundreds of jobs in pen

so it's a good day for the federal reserve that he will not be serving there. the only question is who will they come up with next. >> up next, a look at foster care in los angeles. the positive projections of so many children in the child welfare system compared to the harsh realities of their struggles. >> i was a baby and got taken away right away and put into the foster care system. >> you're just bouncing. >> it's an hbo documentary after the break. after the break. good, cuz i'm a little wo my information getting out. oh, why's that? [bird speaking] my social security number is... 8- 7- 5 dash okay, i see. [bird laughing] is that your daughter? no, it's a macaw. and his name is timothy. timmy, want a cracker? timmy, do you want a cracker? [bird speaking] what do you think, kevin? no. sign up online for free. discover social security alerts. dad, it's fine. we have allstate. and with claimrateguard they won't raise your rates just because of a claim. that's why you're my favorite... i know. are you in good hands? mom, what's for din-ner? just water. lots a

, including federal reserve chairman jerome powell. let's listen >> there's a view on wall street that, somehow, these people in washington at the fed are some oracles from god, and they've screwed up so many times. i mean, what kind of idiot -- i have to y, this was one of the most idiotic rate hikes ever. i do think, you know, jerome powell should really think about whether he's up to this job. i mean, we're talking about trillions of dollars of losses because of a boneheaded play by the fed. look, i think powell has been incompetent so far. if the fed raises interest rates tomorrow, they should all be fired for economic malpractice. >> ooh! >> why have you been so critical of chairman powell. >> so, by the way, did you -- it's so interesting to look at ose clips, because did you notice what the dow jones was at after they, you know, raised ?hose interest rat 21,800. now it's at, you know, 26,000. and i've been vindicated by this. margaret, it's an important point. this was a big boneaded play. and the reason i've been vindicated is

that process take and is the federal reserve ready? jay powell already made that turn after he paused and pivoted in january >> well, rick, thank you for having me. i do think this is a pivotal moment for the federal reserve we have seen a fed that is somewhat humble in asking itself questions about how its models work when you bring up the issue of paying interest on excess reserves, that's really the primary mechanism that the federal reserve uses today to drive interest rates in one direction or another it was adopted as an emergency measure in october 2008. and here we are, 11 years later, and i think it is not a good practice for the federal reserve as an agency of the government to be paying banks 2.35 interest rate on reserves that are sitting there doing nothing. it is like the basic income model, universal income, you pay someone to do nothing. the goal of banks is to serve as the financial intermediaries and to take the savings of people and make them available as the seed corn for investment and i think that the fed is givin

aller: the federal reserve, do they control the banks? host:host: when you ask about what specifically are you asking about in terms of the banks? overall do they control the banks? caller: they print the money and the banks get the money from the federal reserve. 15%, with that be more like if a person with a 10% credit card. host: thanks for calling. can you explain the connection between the federal reserve and the credit card companies in this conversation? with --enerally virtually everybody's credit card in america is called a variable rate credit card so when the fed raises rates as they've done so many times over the last few years everybody's credit card, apr is going to go up by that quarter-point or however much they raise rates by in pretty short order within the next month or two after the announcement. that is frankly what has been driving a lot of the increase in credit card interest rates in the past three to four years because prior to the fed beginning their campaign of raising rates credit card interest rates were large

it's business as usual the federal reserve seems i've taken that to heart it's held on to the status quo and left the key entering it interest rate unchanged and what it calls a patient approach amid conflict things signals in the u.s. economy the fed has been criticized by u.s. president trump who says a rate cut would be better for the economy meanwhile the u.s. private sector added two hundred seventy five thousand jobs in april more than the market expected but analysts warn the robust figure could be overstating the economy strength. he joins us now from wall street he is the fed self described a patient approach to likely to hit any snags given that the white house's push pushing for a more aggressive policy. well actually there is talk here on wall street that the next step by the federal reserve actually might be a rate cut not imminent but maybe by the end of the year and that is in general surprising because overall we've got pretty solid economic news in the past couple of weeks and months so there is a certain sense that maybe all the criticism from the didn't have a cert

when ben bernanke was chairman of the federal reserve, before he got appointed that job, he was head of the economics department at princeton, and he was considered to be one of, if not the leading expert in the world on the causes of the great depression in 1929. which is a very complicated thing. it's not as simple as the stock market crashing in october of that year. and the federal reserve had a great deal to do in 1929 with turning a garden variety recession into a world c cataclysm. the reason i wrote this story about ben bernanke is he recognized what was happening. he said publicly that was the worst financial crisis since the great depression, but that's not what he believed. he thought this was going to be the worst financial crisis in human history, because all of the financing for every business, every walk of life all around the world was freezing solid. so bernanke did the opposite, the 180-degree opposite the federal reserve did in 1989, and he flooded the system with money, trillions of dollars, literally admitted to me that he was just printing money, just pouring tr

it's business as usual the federal reserve seems i've taken that to heart it's held on to the status quo and left the key interest interest rate unchanged and what it calls a patient approach amid conflict things signals in the u.s. economy the fed has been criticized by u.s. president trump who says a rate cut would be better for the economy meanwhile the u.s. private sector added two hundred seventy five thousand jobs in april more than the market expected but analysts more. the robust figure could be overstating the economy strength. and support the joins us now from wall street yes is the fed self of described a patient approach likely to hit any snags given that the white house's push pushing for a more aggressive policy. well actually there is talk here on wall street that the next step by the federal reserve actually might be a rate cut not imminent but maybe by the end of the year and that is in general surprising because overall we got pretty solid economic news in the past couple of weeks and months so there is a certain sense that maybe all the criticism from a wide salis

calling for serious candidates up to the federal reserve board. you'll see who's here. white house not saying right now who else they're considering for the federal reserve board, for those who available slots now but i'm told that the decision to move away from moore was made by the president very recently that is, relatively shortly before his tweetsme as of last night, it looked like stephen moore had a chance and the president was going to fight for him. that's why we saw stephen moore today giving interviews as recently as this morning suggesting he was all in in terms of the fight for the federal reserve board. now though, i'm told the president made the decision recently and he's moving on without stephen moore. the question is, who's he going to put on the fed and we don't know the answer to that just yet. >> eamon javers. >>> coming up, two stocks making big moves today. tesla higher as the company raises cash and underarmor raises guidance. is today's gain just the beginning? we'll ask the "trading nation" team the dow down 1% or about 250 points right now dow

i got stephen moore coming up, nominated to the federal reserve board, withdrew his nomination. steve is a guy, financial tournalists have been learning things for years. >> for days, we wondered if he was going to hang out. it turned out to be so. we will watch with great interest. ali, good to see you. thanks. >>> a potential escalation of the ongoing trade war between the united states and china. the world's two largest economies is taking a toll on wall street. take a look at the big board. we are down 2.1%. we're not at session lows. we were there two minutes ago. you can see this market is struggling the last couple of hours. it goes down, buyers come in. fundamentally, this chart does not look all that great. i always like to see what happens in the last hour of trading. the question is, are beam going to think they are getting bargains and push this up or will we see the second day in a row with a major sell-off. you will notice for those who watch the show regularly, when things start to look seriously, i where i sue in, you see a lot of it. tell me from your perspectiv

like our federal reserve board chairman say well if you really need it just drop the money. helicopter but it doesn't work and all it does is encourage the size of government and there are pretty sour own charge to show the bigger the government the more spending the poor the people and the less liberty i don't think there's any doubt about it might not happen you know exactly on the same day you predict but that is what happens we don't need a big government if we trust people to take care of themselves and put the responsibility on people believe me you will have a much happier society if people feel good about self-reliance but we teach not self-reliance because we have an economic system we're deficits don't matter dr king's dr paul thank you so much as usual we're just it's just the tip of the iceberg so i hope you'll come back and we can continue the conversation and thank you so much for your time today and thing. you for joining us on this edition of politicking and also thanks to larry king for letting me sit in this chair today remember we love hearing from you joi

still the federal reserve chairman says the u.s. is on unsustainable path with spending. others sounding an alarm with this interview with our maria bartiromo at milken conference. >> i have admit i've been complaining about debt since i ran in 2009. doesn't seem to hold us back from a economic standpoint. i don't know what is different when you're reserve currency. i think you're in uncharted waters. reporter: current path federal debt would be 78% of gdp? 2019 to 90% in 2029. now 10 years away. democrats and republicans spending two trillion dollars next 10 years on infrastructure. i'm no accountant. the numbers don't add up. might have to cut spending or increase revenue. connell: edward lawrence can be an accountant. what a mess, edward. every single time we do the story. unsustainable path. still there. melissa: we're still heading in that direction and spend being like drunken sailors. connell: that's right. melissa: a sweet booming business. how baked by melissa is serving up small cupcakes, creating a big empire. burger king taking on mcdonald's. the has food chai

globalization was the last time we used this and that is the federal reserve governor lyle brainard on wednesday became the 2nd u.s. central banker to talk about the possibility of targeting longer term interest rates as a new tool to combat the next recession is actually not so new the last time the fed conducted such a policy was during world war 2 to keep the cost of funding the war so. brainer she's you know her suggestion is that the concept is relatively simple if the fed's benchmark interest rate fell to 0 and the 2 year treasury was at 2 percent the fed could announce it intends to use its balance sheet to peg the 2 year at one percent rather than the market rate of 2 percent the general idea is that longer low term rates spur activity right the risk and the reason this is not done is that you are exposing yourself to interest rate risk exponentially greater than if you have a shorter maturity in their portfolio of bonds are using to manage this economy so they're going to take another huge basket of risk and so when interest rates do go up as you pointed out the beginning of t

so that the one thing there's only one thing the federal reserve is worried about always and that is wages rising so that is the number one thing they fear because it's wages that compete with the capital accumulation of their member banks well. well put. couldn't be more suspect but you know side note interestingly in britain you know the wrangling with briggs it the same time the british steel goes into administration so there is a manufacturing company there if that's your future if you are wanted to become independent sovereign and have a world leading global export economy you wouldn't want british steel to go bankrupt but say. exactly this is what's happening so the mainstream media especially the democratic media will not ask will not provide context for what is going on in this trade war they'll just demonize china and when you look at china and they see you see them accumulating gold they won't tell you the context of the significance and and ponder even questions about why they're buying gold and especially at this moment now the federal reserve is in the news again the fed

the 1800 opposite of everything the federal reserve did in 1929. he flooded the system of money. literally in an interview he admitted he was-- pouring trillions of dollars on this nuclear pile, like water on a nuclear pile. the white house was in gridlock. the congress had voted against the bailout plan so they are in gridlock, and he doesn't need anyone's permission, right? he's the only free player in this whole thing. he didn't need permission when the banking act was rewritten in 1935 as a reaction to the great depression, there were emergency powers granted to the federal reserve. they had never been in vogue, not during the great depression. not at any time after that. bernanke invoked the 13 seed powers secretly. he didn't make an announcement because he was afraid it would lead to panic and then he used those powers unilaterally in concert with his board, but unilaterally to affect all of this money flow into the world economy. just sent airplane loads to central banks all around the world because the dollar is the world currency of trade. central banks around the world

the hack in question is steven moore who trump had tapped for a seat on the very important federal reserve board even though he's not an economist. what moore is is a tv talking head and a trump super fan. moore made a career of being wrong over and over and over again and at least on that front he was consistent. just this morning moore was promising the white house was all in on his nomination. less than an hour later, strufrp announced that moore is decided to withdraw from the process. the reason moore got nominated is the same reason he went down which is that he talks a lot on tv and says terrible things. journalists uncovered comments about women which he maintains were jokes. he says the male should be the breadwinner of the family which as the "guardian" noted was found to owe his ex-wife hundreds of thousands of dollars this child support. there was so much awful stuff moore had to try to defend. >> by the way, did you see there's that great cartoon going along, "new york times" headline, first thing donald trump does is kick a black family out of the white house and has the obam

so that the one thing there's only one thing the federal reserve is worried about always and that is wages rising so that is the number one thing they fear because it's wages that compete with the capital accumulation of their member banks well so. well put. couldn't be more specific but you know side note interesting only in britain you know the wrangling with briggs it the same time the british steel goes into administration so there is a manufacturing company there that's your future if you are wanted to become independent and sovereign and have a world beating global export economy you wouldn't want british steel to go bankrupt but say. exactly this is what's happening so the mainstream media especially the democratic media will not ask will not provide context for what is going on in this trade war they'll just demonize china and when you look at china and they see that you see them accumulating gold they won't tell you the context of the significance and and ponder even questions about why they're buying gold and especially at this moment now the federal reserve is in the news

so that the one thing there's only one thing the federal reserve is worried about always and that is wages rising so that is the number one thing they fear because it's wages that compete with the capital accumulation of their member banks well so. well put. couldn't be more specific but you know side note interesting only in britain you know the wrangling with briggs it the same time the british steel goes into administration so there's a manufacturing company there that's your future if you are wanted to become independent and sovereign and how a world beating global export economy you wouldn't want british steel to go bankrupt but say the exactly this is what's happening so the mainstream media especially the democratic media will not ask will not provide context for what is going on in this trade war they'll just demonize china and when you look at china and they see that you see them accumulating gold they won't tell you the context of the significance and and ponder even questions about why they're buying gold and especially at this moment now the federal reserve is in the news

globalisation was the last time we used this and that is the federal reserve governor lyle brainard on wednesday became the 2nd us central banker to talk about the possibility of targeting longer term interest rates as a new tool to combat the next recession is actually not so new the last time the fed conductors such a policy was during world war 2 to keep the cost of funding the war so. brainer cheese you know her suggestion is that the concept is relatively simple if the feds benchmark interest rate fell to 0 and the 2 year treasury was at 2 percent the fed could announce it intends to use its balance sheet to peg the 2 year at one percent rather than the market rate of 2 percent the general idea is that longer term rates spur activity right the risk and the reason this is not done is that you are exposing yourself to interest rate risk exponentially greater. or then if you have a shorter maturity in their portfolio of bonds for using to manage this economy so they're going to take on another huge basket of risk and so when interest rates do go up as you pointed out the beginning of

like our federal reserve board chairman say well if you really need it just drop the money. helicopter but it doesn't work and all it does is encourage the size of government and there are pretty sour own charge to show the bigger the government the more spending the poorer the people and the less liberty i don't think there's any doubt about it might not happen you know exactly on the same day you predict but that is what happens we don't need a big government if we trust people to take care of themselves and put the responsibility on people believe me you will have a much happier society if people feel good about self-reliance but we teach not self-reliance because we have an economic system we're deficits don't matter dr king's dr paul thank you so much as usual we're just it's just the tip of the iceberg so i hope you'll come back and we can continue the conversation and thank you so much for your time today and thing. you for joining us on this edition of politicking and also thanks to larry king for letting me sit in this chair today remember we love hearing from you j

globalization was the last time we used this and that as the federal reserve governor lyle brainard on wednesday became the 2nd u.s. central banker to talk about the possibility of targeting longer term interest rates as a new tool to combat the next recession is actually not so new the last time the fed conducted such a policy was during world war 2 to keep the cost of funding the war so. brainard she's you know her suggestion is that the concept is relatively simple if the fed's benchmark interest rate fell to 0 and the 2 year treasury was at 2 percent the fed could announce it intends to use its balance sheet to peg the 2 year at one percent rather than the market rate of 2 percent the general idea is that longer term rates spur activity right the risk and the reason this is not done is that you are exposing yourself to interest rate risk exponentially greater than if you have a shorter maturity in their portfolio of bonds for using to manage this economy so they're going to take another. there are huge basket of risk and so when interest rates do go up as you pointed out the beginn

inta pisy new jersey con tess is brewer, nightly business report. >> the federal reserve is watching how this tariff spat plays out and how it may affect the economy. market expectations f a rate cut are changing right now. steve liesman has more. >> reporter: in the wake of new tariffs for president trump on chinese goods and chinese retaliation on u.sgoods. markets are pressing in a corner point cut by october. and maybe as soon as september. the probabilities i the fed fund market price a 60% chance of a cut by september, 75 by december and 90% by january 2020. but for one fed official, it's too soon to make thatcall. >> i'm hopeful cooler heads will prevail and this thison't go down a nasty path. obviously, it's the worst case scenario, and ever increasing tariffs for an extended period of time. that could change things. right now i'm not see.g i'm in a wait and see mode. >> the federal reserve also has to weigh the probabilities on the outcome of negotiations, whether or not there's a deal. how long tariffs could be in place. how equity markepo r in the impact of lower stock pri

ultimately that's the federal reserve. trajectory of the fed's fund rate over the next ten years single largest determine knit of ten year treasury yields back at the yield curve started this discussion telling us markets think the federal reserve will cut rates when one of two circumstances one, a recession, or significant economic down draft leading up to one and, two, a really, really big dip in inflation, already signaled on the second point not such a big concern now. >> so what you're saying, there is a policy mistake here, how is it rectified what does the fed need to do to get things back on the right side here? >> to be clear, not saying there is is a policy mistake saying the markets are starting to price the assumption of one right? so essentially the way to fix this in the market's eyes, cut more aggressively and sooner. >> how much? >> a lot of theme sort of within market plumbing signaling that might be necessary as well. >> how much are we talking how quickly? >> by how much i suspect that the rate cut that

so federal reserve is intermediate and long-term friend, but in the short-term could be a foe. joe: the conversation about the market has gotten so macro. almost all trade. maybe in terms of macro, a little bit about -- sectors, a little bit about chips. we got more retailer earnings today and this week. target still coming up. are there other interesting themes going on besides these two pillars of macro people are talking about? mike: my head is kind of wrapped up in the macro, too. one point that brent brought up, about the notion that the fed might tighten. i think people are also trying to wrap their heads around situationis tariff causes, finally causes some inflation. inflation finally picking up at least to the point where maybe the fed will not hike. rate cutteps for a will start looking a little off-base. ar december, still pricing at 66% chance of a rate cut by the summer, as much as 80% last week. people will stay focused on the fed and how it intersects with the trade war. scarlet: just wanting to jump in with results from nordstrom. issac is tanking in after hours

jessica: the federal reserve is stepping up its warning about corporate debt. thatat the market for expanded 20% last year and lending standards are continuing to slide. stabilityby annual report says this was the biggest existing debt -- the ones with the biggest existing debt are picking on -- taking on the riskiest loans. in indonesia, growth slowed in the first quarter as the global slowdown hit exports. gdp rose a fraction over 5% in the march. from a year earlier. that is lower than the 5.2% median estimate. growth in southeast asia's biggest economy has been up 5% in 2016, lower than the sum percent target. -- 7% target. the pilot of a fiery crash landed plane said it was leaking fuel as it was coming down. the pilot also says he does not know why the plane hit the runway so hard. suggestinvestigations the jet lost communications when it was hit by lightning soon after takeoff. global news 24 hours a day on air and on @tictoc on twitter, powered by more than 2700 journalists and analysts in more than 120 countries. summers.ca this is bloomberg. paul: com

>> i think the president is very interested in bringing fresh ideas to the federal reserve board. as you see him make nominations in the future, he's going to be bringing people in that will bring kind of a renewed and fresh perspective. that's what both of those men represented. there is a process that we go through here in washington, d.c., respect steve moore's decision to withdraw, but what the president is really looking for is people that understand the dynamic approach to this economy that he's been puttingiputting i into practice since first days of the administration. it was early 2017, larry summers, the top economic adviser for the obama administration, said we would never get to 3% growth talked about you have to believe in the tooth fairy for that. no, you had to believe in president trump's agenda for this economy if you cut taxes, get that business corporate rate down to a competitive level globally like we did, if you cut federal regulations, if you unleash american energy and fight for the kind of trade deals that we have been able to negotiate, south korea, being

our reporters will be asking the questions, from the wall street journal and a federal reserve reporter for the new york times. glad to have you here. >> we are curious to hear about your take on the recent fed nominations. jobs butd for these not formally nominated. i'm also curious to hear you talk about what they would like to see out of future nominees. rep. mchenry: the senate is in the nominee business, and we in the house are not. i do not spend much of my time obsessing about the nominating process. i watch it like most people in washington. pretty closely. more closely within my jurisdiction. those two offerings from the white house, they represent a different view out of the white house which is the polar opposite of the obama administration view. president obama put labor leaders, this was an attempt to balance that out in a different direction. as my senate colleagues look at the details of individual nominees backgrounds, i do think it is interesting, the makeup of the fed board of governors and it is important to have folks willing to stay in long-term and look deeply at t

>> the federal reserve has done a wonderful job. what they've done with the financial crisis to today, and focus on what's best for the economy. they have the singular focus on what's better for the economy of the u.s. and for the job market long-term. they've done a nice job of -- >> so you think with doing that, you do not see them then i'm putting words if your mouth and free to distance yourself from them but do not see the federal reserve as a primary risk to the u.s. economy even greater than china >> i think they do their best to figure out what is the information out there? look at that information how do we actually keep prices stable and growing just a little bit and maximize employment? and if you look towards that, they've done a nice job on the employment side and sure, people might want more inflation but man, it beats the deflationary risk we've had a few years back. tune out the noise, keep thinking long-term. >> does it trouble you at all that the administration is critical of the fed trying to maneuver it in a dire

he asked me to serve on the federal reserve board. there are seven members of the board of governors on the federal reserve. when thete honored president asked me to do this.

tariffsmplementation of and the threat of more has federal reserve officials trying to figure out what the impact will be on o economy. as steve liesman reports now the answer is not clear cut. >> well, the federal reserve cut interest rates to herop up the economy if the trade war weakens growth. not so fast. the trouble is the fed isn't sure how tariffs will affect the economy and it doesn't really know how to respond. >> the tariffs are inflationary and on a transitory basis. they tend to raise prices and we think the latest round of tariffs will probably add a couple tenths to ilation and you tend to see some deflationary effects from lower growth. >> the fell has to figure out will it filter into the economy and raise inflation requiring higher interest rates or the weaker growth possibliy kry cre by the tariffs requiring a rate cut. the fed's answer, we don't know and we'll just have to wait to find out. the president, however, doesn't want the fed to wait at all. he said in a tweet today china willin be pumoney into their system and probably reducing interest rates as always? or

picke: coming up is the for the federal reserve award. this is bloomberg. ♪ this is bloomberg. ♪ so with xfinity mobile i can customize each line for each family member? yup. and since it comes with your internet, you can switch wireless carriers, and save hundreds of dollars a year. are you pullin' my leg? nope. you sure you're not pullin' my leg? i think it's your dog. oh it's him. good call. get the data options you need and still save hundreds of dollars... do you guys sell other dogs? now that's simple, easy, awesome. customize each line by paying for data by the gig or get unlimited. and now get $100 back when you buy a new lg. click, call, or visit a store today. vonnie: live from new york, i'm vonnie quinn. and i'm guy johnson. this is bloomberg markets. let's catch up with the bloomberg first word news with kailey leinz. y: gavin williamson hit back at prime minister theresa may. williams had told sky news that firing him was a useful way for may to show she is strong and bold. may said she had compelling evidence that willia

. >> plus, the federal reserve from its maytes meeting. top fed officials tell bloomberg what they think about the bank's pivot. that we're --ned we may have slightly overdone it with our december rate hike. all straight ahead on "bloomberg best." ♪[music] >> hello and welcome. i'm taylor riggs. this is "bloomberg best." your weekly review of the most news,ant business analysis and interviews from bloomberg television around the world. start with a day-by-day look at the top headlines. the same wayan that the previous week ended, growing u.s. and china more and more confrontational on trade in both words and actions. >> president trump says he is very happy with the trade war and that china won't become the world's top superpower on his watch. comments signal he's in no rush to get back to the negotiating table. as top u.s. tech companies, including google, frozenm, have reportedly the supply of hardware to china's huawei. we're seeing this having an on trading over there. why are u.s. companies capping huawei, following the instructions