FED discussed on Balance of Power

FED

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Rated R. immigrant neighbors so I I would I would say that unemployment is continue to go down quite significantly since we began to to raise rates in in at the end of two thousand sixteen actually the end of fifteen but again did the fed consider how raising rates would disproportionately impact those who are already struggling to secure employment I think our our consideration was really that the right thing to do is to get monetary policy back toward a place where reflected a an economy that had recovered quite a bit for the benefit of all people including low and moderate income people including my for a lot of people still recovering but the interest of time given that there be no signs of the economy overheating since then and you're now cutting rates is it possible you begin cutting rates too soon I think history will judge that we have to make the decisions in real time we we have the we really have learned something since then and that is that on Plymouth can be lower than than most people thought some pollution so bear that in mind knowing what you know would you still Love supported raising the interest rates when the fed did I did support them and and you know hindsight's twenty twenty I don't think you have to judge those decisions on what we knew at the time what more Americans have jobs today if the fed had not increased rates over the past three years I don't know where the fifty year low it's it's it's a fair question thank you thank you I would like to thank chairman Powell for his testimony today without objection all members have five legislative days within which to cement we have a list of federal reserve chair Jerome Powell testifying on Capitol for about three hours now and where the house financial services committee he's covered the things we were expected to just say he said that the economy is basically in good shape you think so much your policy is about where it should be he did refer to the corona virus over in China to their monitor that carefully to see what that might mean and there were a lot of questions and things like a repo that was to be expected and also Fairmont on climate right now is bring in Blue Ridge international economics and policy correspondent Michael key is coming to us from washes Michael tells what the headlines were for you were there any surprises no surprises David these hearings have become something of an anticlimax because Jeff Powell speaks after every fed meeting and of course every member of the fed speaks quite often so we have a pretty good idea of what they're thinking at any given time this was more of a chance for the fed chair to speak of the corona virus for the first time and he did suggest that yes the fed anticipates there will be an impact in China but how much of that spills over into the United States in global economy still way too early to tell the fed will continue to monitor it couldn't expect him to say a whole lot more than that there were some questions as you mentioned on the repo issue but nothing too difficult for him to answer and then a lot of questions about the budget about long term find deficit financing what Congress or the fed could do in terms of the next recession a lot of lot of the questions David that you're going to be talking to people about up in New Hampshire as it moves sort of from the federal reserve in the agencies to the political sphere yeah yeah I wonder Michael it seemed almost like a federal researcher Jay Powell was sending messages to president trump at the same time president trump was sending Mrs right back at J. pal because certainly drop was not made as miss that any procedure the fact that he thinks that the government should get their fiscal house in order he's worried about the deficit issues and we saw that new budget really runs up in the meantime he was asked specifically a present from treating while he was testifying saying that the stock market's going down any sort of blame J. Paul well that's sort of typical Donald Trump he does that to and J. Paul answered the way usually does say I didn't know that he did that and I didn't know that the markets went down you could point to the fact that the justice department announced an antitrust investigation again some big U. S. companies as a reason for the market going down today rather than power because I think Powell did what he intended to do and that was pretty much make no news I think the one thing people are going to remember about this hearing is California representative Katie Porter holding up a picture of Jayde Powell in black guys standing outside of Jeff Bezos house in Washington the after party for the alfalfa club she tried to make something of it as if there was some conspiracy there Paulsen I didn't talk to anybody famous or powerful here I just introduced by newly married son to general Jim Mattis yeah this is something important either don't go to the after party when you go to the health club dinner Mike or if you do make sure you don't get a picture taken is in place yeah that's about in Congress I don't get invited either I don't have to worry about it all come on the line I know you do okay Blue Ridge like Ricky and watch it thanks so much for joining us now let's find out how those markets are reacting as we talked about just now president trump tweeting about it let's turn to Abigail do little in new York's up what's going on the markets Abigail one thing that overall we're looking at a risk on mood for did broader equity markets in the financial markets more largely take a look at the S. and P. five hundred the Dow transports here in the U. S. B. C. gains both up for a second day in a row the S. and P. five hundred putting another all time highs however to the point of what you were just talking about with Mike Nikki in the idea of president trump tweeting that ask Powell is speaking the markets were going down we are off the highs but we do still have very solid gains behind that small leg low lower that could be the fact that term fed chairman Jay Powell is talking Acadia that they do not it's too early to measure the true impact of the virus that certainly leaves open the possibility that it could be more damaging than the early estimates of Goldman Sachs last week saying that it could take off four tenths of one percent of GDP here in the US in the first quarter now the risk on me though is confirmed by crude oil up one point one percent that's really been a laggard over the time heard as we take a look at the moment and also we have haven bonds selling off so overall investors are moving into stock out of haven assets that is why there is a strong risk appetite now since the start of the corona virus or at least since it would spend widely known crude oil has not fared so well down about fifteen percent in that time period trying of course is the world's largest user of natural resources so there's big fear that there could be a demand problem if China stays out of the economic picture with their economy shut down to some degree in orange we are looking at the S. and P. five hundred this is pretty interesting David because right now we had stocks for the first time over this time period doing than bonds his bonds over this time Kerry investors going into heaven bonds but today with the S. and P. five hundred going higher interest rates going a little bit lower over the course of the corona viruses we've been tracking it the S. and P. five hundred finally doing better and then on a very bright no David take a look at this movement really pretty incredible sprint up seventy three percent T. mobile of eleven point two percent this of course on T. mobile T. mobile getting approval for twenty six and a half billion dollar take over of spring it's very rare David to see the acquiring company move up not only isn't living up it's up more than eleven percent especially since twenty twelve it tells you just how much investors want this deal to come together yeah really they just say it's about time it's been a long cut time governor okay thanks so much to Abigail too little the polls are open now here in New Hampshire as we wait for results in the first in the nation primary we welcome now the eighty second governor of the state of New Hampshire his Republican Chris Sununu a special contributors Rick Davis a stone court capital Angie's NO Lana callers are back with this as well so go to welcome thank you so much for joining human life to serve the broad question gives the state the state how you doing we're doing really well looking at the economy here in New Hampshire is phenomenal it's booming when you have the lowest poverty rate in the country when the lowest unemployment rates businesses and families moving into doing it to Hampshire unlike any place else in the northeast that's a huge opportunity for the government but for families and individuals and that's why economic prosperity in a strong economy sold portent because it provides a better quality like a full provides more flexibility so we're very proud lot look is always a challenge out there whether it's investing in mental health opioids whatever might be but we have a lot of opportunity so it is that kinda world why would voters really be worried because the polls it sounds like their life is pretty good they don't want a life change should look look did this to his wife put folks come out first they come out to say yes we are very happy with it and that's why Donald Trump is actually a lot of voters out today on the Republican side even though he's really not running I mean you could get upwards of a hundred thousand votes today and they didn't have to come with us people kind of voting the the success that they're seeing in their communities he have also folks on the other side is going to be a candidate in this but a lot of kids any sort of to spend money but spent time with folks one on one in their communities to get them out some can it's a better at it than others in terms of look in New Hampshire if you go look someone in the eye he has a cool you as a person first middle by often the person that we get to the policy later and that's when he just such a good national litmus test because we do have such a high voter participation on both sides we are very purple were very politically diverse a doesn't take a lot of money name ID to do well here it really just take some of that spends time with the individual and that time gets you can't earn that vote that's for the case to the not voting people understand that responsibility of coming out and being that first litmus test for the rest of the country yeah I mean we hear a lot about the expectations for the candidates you know and what they're trying to get out of the the primary New Hampshire but how about the state I mean there's obviously a lot of spending that goes on in the primaries have on stage they they come in they spend a lot of money you know art are one TV station here because temporarily becomes less profitable TV station country be honest about it but the odds aren't everything they're really not my guess is there's a lot of pizza places that are feeding a lot of campaigns with with pizza night but there is an economic impact but it we don't really look at that as much as the impact we and responsibility we have a state and the citizen's to kind of be that first draw right this is not all about the dollar since of responsibility would take very sushi which is why we've given what happened in Iowa you know we just we just want to kind of confirm folks we get it right we've done this for a hundred years or pressure based on one have a bigger spotlight for pressure because we're not really changing anything we've done it a hundred percent reliable a hundred percent of the time so we've been a little more transparent about all the different things that we traditionally put in place one person one vote paper ballot it's counted results come out it's it's pretty simple we know it as Bloomberg does not account but we want to make sure people understand there's a lot of reliability and safety net and because of that a lot of folks come on participants so yeah it having dispenser Iowa we're hoping to get results tonight right we're gonna get you'll get some of the first towns I mean we do it on a on a paper ballot optical scanner there's no confusion the only cords that come out of those optical scan like the men right there's no internet is nothing like that and then the you get the results they're confirm very publicly all the candidates have people there that confirm those results in the cold it's pretty simple so in terms of what we're hearing from the candidates in the economic front we hear a lot about the.

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