Replaying bank currencies, i think were a long way from t t that. So essential not too concerned about central barracks no long or Digital Currencies you know, facebook has made i believe quite broad rounds around the world with regulators, supervisors, and lots of people to discuss their plans. That certainty includes us, and its something were looking at. We immediate with a brought range of and there is just a tremendous amount of innovation going out out there. There is pour tenchally benefits, also potentially ricks. So i would echo what Governor Carney said, which is that we will wind up having quite High Expectations from saved and soundness and regulatory standpoint if they do decide to go forward with something. You know, we dont have Plenary Authority over cryptocurrency sits as such. They play through our world through Consumer Protection and money laundering, things like that but through international forums, you know, we have significant input into the payment system, and as you know, play an Important Role here in the United States. Thank you, chairman i want to take you back to chicago and the review much your monetary po and something i think that is developing is outside experts are sited and like the jurisdiction of the february shifting your target up to 4 they think that would help Monetary Policy and 2 is not sacred or whatever it seems like you have taken that off the table have you taken it off the table . If so, why and what are yew thoughts on that thank you. We have said wouldnt look at raising the target rate for inflation. We did say that. Its become a global tomorrow 2 our stat tore mandate is price stability, so were looking at less radical ideas, this givers me a chance to say about the reradio you its a new thing for you. It will be a year long, or even longer ross looking at the strategy tools and communications its a way to let the sunshine in and have dialogue and criticism weve had a series of fedlistens at every reserve bank, and we had an academic conference earlier this month with seven papers written. I would say the hard of the conference was the two panels who live in low and moderateincome communities, and i think people were quite struck by that are intervention, which was uniformly how important maximum employment is and what it means in their communities. The idea is that they havent had a bull market in those communities. What they have is low unemploymenu employment, lots of social problems and now you have companies wanting to hire and providing opportunities to an extent not seen in quite a long time for someone who does this work, i think everything thousand it was quite worst doing. Thats not what and were glad of the choice we made you know, they kind of shrugged their shoulders. Is 4 inflation radical . And to who you see disinflationary a factors around the world weve done better than other large Central Banks who are not open economies, like the uk where you have big currency moves that move inflation around inflation has been lingering and not getting back up to target in a sustained, me risymmetric kin way. Reporter i have a question about Bank Regulators leverage lending guidian from 2013. As you know, the gao had a letter say they thought it was a rule, and it sort of went away, but yet leverage lending is a source of concern. You yourself have said that credit underwriter quality seems to be deteriorating somewhat lately, in that the fed has tools to supervise banks and to prevent leverage lending from becoming too much of an issue is the 2013 guidance still representative of the sort of feds thinking about leverage lending . And does the fed have any intention to either issue like a leverage lending rule or new guidance that is let problematic . Or is the plan to carry on with supervision, as you are . The 2013 guidance is not binding. But thats really the beginning of the story you know, we have the theory we need to ask the banks for safety and soundness exposure so start with the rinks the banks are taking to themselves, through the rinks they are running, the pipeline, the allegations they have undertaken so we monitor that very care nfl. So do the he banks, and you see exposures much smaller than before the crisis. By the way, we test that regularly in the stress tests. So we kind of have a sense of what that is, whereas before the crisis there was a lot of lack of knowledge about what the losses would be. Thats where it starts for us, the risks that the banks are running on their own books, and to themselves, and to each other. That i feel like thats in a good place, but we never say Mission Accomplished on that we will keep, you know, keep monitoring that carefully. What has happened, though is the paper is now owned by marketbased vehicles, collateralized loan obligations, mutual funds, things like that so we now have a good sense of domestically where that paper is i think internationally not at much, and the Financial Stability board is actually looking more carefully at that we monitor those vehicles to see where they are, and theyre actually stably funded, but theres still Macro Economic risks, and we take that very seriously. We call it as a macroeconomic ris risks. Is there any intention, any plan on the part of the fed or other regulate are to create any additional clarity or inconsistency i guess the other part of guidance is to make sure that everyone knows what the supervisory expectations are, for anything for that matter . Is anything else coming . Or will it remain bilateral conversations with banks i think the issue isnt that the banks dont understand the rules. The issue is that the risks isnt in the banks its out in the marketbased vehicles i no longer am day to day involved in this as i was before i took this job, but my sense is thats really not the problem. Im not saying its perfect, but i think we understand what risks the banks are running, and the question is how concerned should webe about Large Holdings by marketbased vehicles, and what risks do they prevent . We continue to take the risks seriously. Reporter brian cheung, yahoo finance. The statement noted that the markets remain strong, but the may jobs report missed on estimates, but employment rate still stayed at 3. 6 how do you reconcile that with the 3. 1 of wage growth, and how does that company are we closer or farther away from maximum employment you know, we have to be closer, because more jobs are created than people entering the labor force. The Unemployment Rate is lower by just lots and lots of numbers, you know, the labor market is in a good place. You mentioned wages. The level of wages is very consistent with what it should be, in the sense that its approximately equal to inflation plus product activity increases on an hourly basis, so whats i guess surprising, though is you could reach these levels of unemployment long into a cycle, lets say theyre not growing at a rate that would provide much upward thrust. We watch this carefully, and were very careful about not assuming that theres no more slackses in label mare and you viewpoint seen wages fick up, you havent seen real signals. You have seen a tight any mark,i tight, but not overtightened chief, jean las the last question. Did it discuss the change to a Balance Sheet policy, perhaps ending runoffs earlier than planned . Would the economiee be inclined to do Something Like that . Of course we havent made any decisions yet. Balance sheet runoff is very close to the end of its planned life i would say if we do provide more accommodation, but if we provide more accommodation, well certainly keep in mind what we said earlier. Fed chair jay powell wrapping up the News Conference. The headline the fed leaves the rate unchanged, but does thousand out hints that there they may be heading to a change. A dovish tone to the statement. Lets check in on what its done to equity markets with 20 minutes left pretty much flat before the statement at 2 00 p. M. , a by of gyration, but settling up 0. 4 follows that statement now twopoint cyr , and, not a huge move. , i think its. More accommodation to this economy. He also satisfied the markets. If you look at stocks, there was a high bar we had a strong runup going into day he could have dispoimd the markets look at the, weaker, so lower dollar, lower treasury yields higher stocks trying to pric in joining us josh brown, ceo t. Welcome and i think hes very good at his job. He speaks english, which is a bit of a departure from prior fed chairs cho have had that gig, and i think hiss more when they ask him epps, the big takeaway from me is you should by embarrassed if youre being to make an investment because of a quarterpoint rate cut or not rate cut. Like no one seriously is changing an Asset Allocation based a if you got it in june or july, or they make you wait. You saw a bit of a selloff, and brought it back to green now they roll a bit. Its a roll of noise, but not a lot of fraction on the board. The setup could have been tough. Were up 6. 4 now, and of course higher today lets bring in our fed jeff herming, chief investment at double line capital michelle, and Rick Santelli joins us from the cme. Steve liesman will join us shortly, as well as stephen moore. Whats your takes in terms of the reaction i think the bond market has been pricing this action in all along, right as josh just mentioned, whether its a 25base cut, now we have effectively priced it in. 100 nearly, right . Yeah. Roughly. Its delivering expectations. Whether you go and dissect the dot plots, saying that there were be a cut, most of them saying there should be at least one 50basis point rate cut, its delivering on Market Expectations thats why youre not seeing a lot of activities in terms of equities credit spreads are holding in there. That breakeven spread actually went up today, so it seems to be bond Market Pricing a lower growth rate. Michelle, i thought the most definitive point was when he answered a question on President Trump. He said, i think the law is clear and i have a fouryear term, and i fully intend to serve it does that clear anything up . You know, hes been making that comment, and every press conference hes asked that in a 60 minutes interview, he also responded to that, so i think he fully intends to serve out his term his goal and intention is to do whats right for the economy, regardless of the political noise, and i think the fed has decided on the number one goal, they are unwilling to risk having the economic fall into a recession. Hemay that clear, also noting the commentary from the fed, that a lot of the economic actors, a lot of communities are first starting to see the benefit. They dont want to thattic it away too soon. Theyre willing to act in order to get that. David, whats your that i can . Did mr. Powell sort of nail the aspect of not delivering a cut, but guiding towards one . I think he did. Actually i think it was a very different meeting for chair powell i think the market also has some scars from communications in the past, so were always hesitant to give him the benefit of the doubt, but i think he nailed this one, and gave us what i like to think of insurance guidance instead of insurance cuts they have their finger on the trigger, theyre ready to go, all they need is the excuse. It could be data, it could be markets. It could be just they get frustrated with this miss in inflation, which jay highlighted numerous times and hes been a proponent of this, but i think folks are getting tired of that inflation mix. Thats what driving them to actual actually cut later. And on that point, two notable absent words, patient and transitory lets bring in steve liesman, who was in that room, and what did you make of all of it . You know, i think its probably a better better that the fed cuts rates in july, but i will say its not a done deal. I asked them about the issue of trade and if there is a deal, and he says its essential to the change in the outlook. Thats an important phrasing from the fed chairman there. You know, if trade changes the outlook overnight, it could change it back overnight the other way. I will just point out theres a months worth of date. You get a strong employment report, and gdp, and some bottoming of some of the manufacturing weakness, i know thats not the forecast, but im saying theres a month to go you could lay some odds, at least i would lay some odds that it doesnt happen. Steve, stay with us as well, jeff, i wanted to touch on of points off the back of what steve said. The chair also said that Global Growth is important. Does whats has been on the first of all you look at the auto sector, specifically germany, its been horrendous. Germany is technically in a recessional this point, so at least an impact, but on the back of steves comments, too, it is interesting that the next fed meeting takes place on the day the Second Quarter gdp gets released i think you do put them on pause again if theres an up side. How much is riding on the g20 meeting next week. Everybody is focus i mean for fed policy, though it sounds like its pretty key. Because its centered on the trade war, right there a resolution the kicks the can, which weve been doing for many months in terms of these policies is not helpful to the feds job at this point. It doesnt bring any resolution to it chairman powell did give kudos here. I wonder what the president will say. Lets get a summary here. We maintained or policy interest rate, but made some significance changes to our statement. Since the beginning of year we have judged that or stance was broadly appropriate and we should by patient. In light of for the economic on outlook and will act at appropriate including trait developments and concerns about Global Growth. Committee participants expressed concerns about the pace of inflations return to 2 many fomc participants seeing a change for a somewhat accommodative policy has strengthenedened i would say theres not much support for cutting rates. If, for example, theres a deal with china, does that take the possibility of rate cuts off the table . Its really trade developments and concerns about Global Growth that are on our minds. Were not exclusively focused on one event. I think its clear that i have a fouryear term, and i fully intend to serve it. A enbetter with music rick, we havent heard from you yet. I can tell you that im amazed as some of the developments. Wee now down a dozen basis points 30s are down one that means we have steepened nine basis points, and the lock jam i always talk about with fed funds did occur. The june cut didnt happen buzz that month then added more in than the nearbyes took out. What that means in english is its like a christmas carol. It goes to the future, theyre at the grave, is this my future . The ghost says, if he dont change things, it is this market is looking at the Current Trends that jay powell kept reasserting in many answers to question that is theyre not there yet, but the conditions are moving in a direction they may warrant an ease. The market is bets those conditions are a trend ar they are baking an emore aggressive rate scenario by the end of the year than they had to date you can even see it exaggerated in the short end and the yield curve. If you have a 300,000 jobs report and gdp number thats half a percent better, the markets will have to do big uturns, but if the weakness continues, its pretty much already baked in. There was a line where chairman powell says risk sentiment has deteriorated. He would have been right about that if he made that statement around christmastime its very hard to make that statement now, but if you look at the bond market, i get you could. May was pretty brutal. But the month of june you apple is up 17 this month like, lets relax with the deteriorating risk sentiment food, clothing shelter and iphones, look sectors that have made new highs, just focus on charts bear with me for one second. You sew consumer discretionary, technology, consumer staples, and real estate, utilities, these are the stocks that are working right now, as rates have come down. Look at whats peaked already. Energy peaked in 2014. Financials peaked in jan wore 2018 take a look i think theres way too many winners so, michelle, the take away is hes going to act as appropriate. Which data points will be most important . I think the next two weeks are so important they do need to see what happening, and i think theres a few things two, what happens with the ism surveys. And then importantly what happens with the report. Well have all of that information by the first week of july frankly i think it did a good job in doing so. Statistics it department on how they play out. The timing is conditional, though what do we heard about the strength of the u. S. Economy ill answer that. Definitely they see a weakening, you can see down to 2. 1 the question becomes is it a garden variety weakening or something more serious . But they have a baseline scenario that things work out okay what you dont know but i guess what you have to seen is that baseline scenario includes rate cuts, only things only work out okay if we cut rates its a critical one and one i will be up listening for in the commentary, some of the speeching that come out. Do we only end up at that 2 number, or can we get there without it . Jim was always going to be that guy, even in the original part, he was very much against it, so i dont think theres a big deal. What he told us today if there is a pullback, this reserve is likely to bring out the guns what if you get a china deal and youre traiting above, does the fed cut into that scenario i think its very different were at a 50year low they gave you insurance guidance today, not insurance cuts. Theyre not ready to do insurance cuts, and i think as we go into july, it will be tricky if we have strong data, the market may go up and touch toss report highs, and i tell you what i think im i wonder, can President Trump have his china dive and trade deal and rate cut, too i think those may be mutually exclusive. China doesnt want to see a deal without a rate cut, either, they would love easing monetary policies the global dowel is already significant on the a trade deal, along with what he had to say yesterday. You have many of the pontens there all moving in concert for the first time the bond marked is expecting a trade deal i would say its not expecting a g20 deal, otherwise you wouldnt get the rallies everyone stick with us after a shore break, wee also be joined by stephen moore. Hes put out a statement. And a big interview, congressman Patrick Mchenry, who is calling for a hearing on facebooks new cryptopush. He wants to hear about the libra currency feel that . Thats the beat of global markets, the rhythm of the world. But to us, its the pace of tomorrow. When we create the possible. And when you do that, you dont chase the pace of tomorrow. You set it. Nasdaq. Rewrite tomorrow. Through the at t network, edgetoedge intelligence gives you the power to see every corner of your growing business. From managing inventory. To detecting and preventing threats. To scaling up your production. Giving you a nice big edge over your competition. Thats the power of edgetoedge intelligence. Wanna take your xfi now you can with xfi advantage. Giving you enhanced performance and protection. When devices are connected to your homes wifi, theyre protected. Helping keep outsiders from getting inside. And if someone tries, well let you know. So you can stream, surf and game all you want, with confidence you can get coverage where you need it most. Thats xfi advantage. Make your xfi even better. Upgrade today. Call, click or visit a store. Weve been steady since the press conference, so a bit of gains off the back of it unitedhealth, disney toward the top of the list, dew pointen, boeing, nighti at the bottom let ate get back to our megapanel, and were joined by stephen moore. You just put out a statement it sounds like you do not agree with the decision. Why . No, i sure dont. I would be disappointed. This should at least cut a and reduce reserves. If you look at the data, we have deflation in Commodity Prices. The fed has continued to overestimate Inflation Inflation has come down and its been four months in a row below the projection let me put it simply, theres no whiff of inflation anywhere in the economy. The fed should get ahead of the curve of that. I view this as an antigrowth effort. To what extent do you think the president s tweets of goodness on the trade front earlier this week therefore played into the lack of a rate cut . Do you think the president will regret releasing that news so early . Thats a complicated question, because theres so many moving parts. Look, i think there are some signs of progress on china trade. Thats good for everybody, its good for america, its good for employment my point is, and i keep hammering this point when the economy grows faster, that does not cause inflation. The fed is in this phillips curve mentality, it has that somehow when the economy grows, we need to pull back some of that growth. Im concerned about prices, and i look at whats happened to the oil price, and the soybean price, and these commodities, theyve been falling thats consistent with a deflation environment and the fed did not act. If theyre going to act they did hint they may lower rates in one of their next meeks, sow why wait youve been about six, make seven people that want to disagree with you. Josh, get. I dont know that i disagree. I would love to hear your take on this. So you think the fed is holding back and should have moved today. During 2016, the current president , then candidate, was screaming about the fid keeping rates too low, using them for politi politic politics. And, quite frankly, i know about all the claims about how great the economy is, but gdp at 2 i think it was about the same then, too. Whats the justification now, if it would have been political and manipulation during the campaign i think thats a fair point i think thencandidate trump was wrong two years ago. They were not keeping rates too low, and they are keeping rates i mean, they were keeping rates too low back then, and theyre keeping them too low right now. Youre right theyre projecting 2. 1 growth thats nothing we think we can have 3 to 4 growth with now inflation whatsoever, and the fed doesnt believe thats possible. We should have done a quarterpercent reduction. Somebody show me anywhere, anywhere, show me inflation in the economy. What is the fed so afraid of jeff sherman . I would say show me the 3 real growth rate. We had it. Well, thats the difference if you look at the last seven, eight quarters is much different. What is the gdp growth rate its a crisis. One at a time jeff sherman, your question. Its been about 2. 2 to 2. 3 per annum. Thats why were back to the trendline growth it is no different from two or three years ago last year was the aberration, supported by a massive stimulus, with a massive dead load behind it. I completely disagree. Okay. When we took over in 2017, the economy was growing 1. 5 then we increased to 3 in the summer of 2018, we got it up to near 4 , and then the fed catastrophically saw that increasing growth as a sign of inflation, and they tried to tamper it back by raising rates. That was the catastrophic rate there are two Things Holding back from the 3 to 4 growth path one is the fed is too tight, and the second factors is the trade war. Look, the trade war is a big problem. Im not denies that but at the same time ill ask you that question again why hold rates as high as they are, where we have no inflation in the economy on steven, when was the last time you spoke to the at the present time and how do you think hes feeling at the moment ask me in a couple hours. Ill be see the president for a ceremony in the oval office, but every time ive spoken to him, hes very frustrated he gets it we cut taxes we deregulated the economy, were promoting american energy. The fact no, no, everyone is saying that worked, and itsic so good so why do you need to cut rates . Because we dont want 2 growth we want 3 to 4 growth. I think the fed is holding it back by keeping rates. We want more growth with no inflation. We think thats possible again, i think the fed is aid frayed of some boogieman of inflation. Look, im an inflation hawk. My point is i dont see any out there right now. Steve liesman well, how do i start . I mean, the idea that the Federal Reserve has that the tax cuts have changed the dna of the economy, stephen, in my opinion, remains to be a question to be answered. Okay. Thats fair. The idea that the economy is so weak it could not tain a funds rate the real funds rate, you know as a student of economics, if people follow the real funds rate, its 0. 5 . Yes youre saying that the combination of tax cuts the deregulation created so much growth, that a real funds rate, a real cost of month, which, by the way has been nearly and you know that too, steve yeah. This incredible surge of growth you created could not withstand a 0. 5 real funds rate that was catastrophic to the incredible work and programs of the he if the president . Im asking with a bit of saturday cha sarcasm. We had a really nice growth rate, no inflation, full employment, and, you know, so why does the fed have to mess with that picture . Now whats happening with the real economy and thats what worries me, steve. Look at what happened to the oil price. The farmers cant make any money with the prices falling like they are Soybean Prices are a direct result of the trade, corn is going up very little research. We have another economist in the conversation michelle, i just want to bring you in on the inflation discussion and how severe the low inflation is and whether that should proper a fed move. Yay, probably one play to start is to remember this fed is operating based off their assumptions, they have to consider the path of inflation and what it will look like when they were engaging in rate hikes in 2016, 2017, the Unemployment Rate was well below, and it looked like the labor market was tight and policy was well below what you would consider music, so it would move higher, and along with how you should normalize seemed quite prudent its not that the level of Interest Rates its where is the level of Interest Rates relative to some sort of steady fate or some sort of neutral i think what the fed is now embracing is this idea that policy is probably gone to neutral, and maybe its gone a bit above, so we want to take that back. We want to ease a bit to ensure that the recovery will continue, but it doesnt mean were not in recession were still creating jobs. The labor market is still tight, and inflation, all things considered, is supposed to trend higher, not climb higher b. Trend higher thats this whole yesterday that Risk Management is trying to engage in. Were nearly out of time. Stephen moore, another question, why did you put out a formal statement with your views . Are you planning to speak to the president about any job offerings that might be still on the table . If he brings it up, i certainly will talk to him im sure hes not happy with the decision he wants a 100basis point decline in Interest Rates. Im not there. I do want 25 and see what happens. To the other economists on this panel, i mean, you keep talking about how loose Monetary Policy is, how low Interest Rates are, but where is that showing up in the economy . Thats my point. You know, show me where the prices are out of control. We dont see it in Consumer Prices or Commodity Prices if the fed is so easy if youre a student of tuition at university how about assets prices well, but the asset prices are rising, because we did the tax cut and deregulation stephen, it starts from steve, im sorry that we are out of time. Steve can you not get labor growth and product activity at 1. 5 to get to your 3. Steve, i want you to win the math doesnt work. Were going to get product activity up. Thank you all for joining us and thank you, steven, for facing the tough questions thank you all. By the way, steve is prothe Briefing Room for the lappers reception of the medal hes getting, the coauthor on trump onommics. And that ceremony is expected to start a little later. And theres a rare exclusive and theres a rare exclusive interview with the huawe you should be mad at airports. Excuse me, where is gate 87 . You should be mad at nonseasoned travelers. And they took my toothpaste away. I ceo. And you should be mad at people who take unnecessary risks. How dare you, hes my emotional support snake. But youre not mad, because you have e trade, whose tech helps you understand the risk and reward potential on an options trade its a paste. Its not liquid or a gel. And even explore whatif scenarios. Wheres gate 87 . Dont get mad. Get e trade and start trading today. Im going to give you this one on the house im not bullish on the story or the fundamentals snapchat breaking out, undeniable back above the july high this is under massive accumulation i think you have very little down side if you use a trailing 50day moving average. So two points risk, six, seven, eight points up, clearly something has changed with this story in the way the stock is trading we all know that. That hands changed since it came public the they were overpromising, and now feel are. Peter joins us. My view las not changed around this communication i expected the removal of patients, especially the equity market i would think, frankly that the equity market should not love this statement i felt it was quite balanced, actually, and in fact, i think chairman powell talked a lot about, you know, looking for trends, rather than reacting to data points . I thought that was particularly important. It really hasnt been something that people have been picking up on while i think many are thinking that july is without a doubt on the table, i think its difficult to actually see a trend emerge over the course of two months i think even though they removed the patient language when he talked a bit about looking for meaningful trends. To some extent, that says theyre staying patient even though that word was remove. Some way with all good news that weve had in the last week, whether its on trade or dovishness, how big of an opportunity is this right now for clients to well, i think its really important for investors to be riskfocused here. All the catalysts that have propelled us to near target, by somewhat, that was 2800, are really in the Rearview Mirror we had a change in fed language i any its rich at this point given what our yew look is for the fundamentals for growth in the later part of the year into 2020 i think investors and Market Participants should really be focused on Risk Management, tick laply in sectors that benefit from idea that ratesly lower and that growth is going to somehow going to improve magically for example, the Home Builders have been outperforming, notwithstanding their performance today. She like pete, thanks for joining us dom, we have just under three minutes of trade with more and whats moving. Wilfred, bonds and stocks, i want to point out whats happening with the ishares iboxx, a pretty big move higher at 2 00 p. M. , so a big move higher in investmentgrade corporates but, remember, at these levels, youre talking about the highest price for this etf since september of 2016, so keep an eye on those, and you can see theyre all the way back there one other play to look at, stock market, advance and declines, we are seeing a bit of a move there with the stock market showing at least a bit more measured of a responsibility keep that in mind. I will send it back to bertha. Over to you. Were seeing the nasdaq at higher following the fed decision, about 2. 25 away, but look at adobe, earnings better than expected. Today, it is back to alltime highs, dating back to april 20th in the meantime you have tech names that surge lets send it on over to bob. Bertha, it is very impressive we have pulled off any gains with the big gains we saw earlier. Interest ratesensitive stocks, of course banks move down, we are essential at historic highs, all the bond etfs that dom has mentioned, theyre at new highs. Not just corporate bonds, but junk bonds etfs. Theyre all at new highs overall the stock market, s p 1 from an historic high. We get a china deal next week e. Well be at alltime highs quickly, the increase, thats the big question out powell set quiter spending and jobs were both strong, but a china deal may reduce those worries as well be careful what you wish for were going out right now, s p 5002927, that is 18 points from the old historic high of 2945. There is the closing bell for the day. The Dow Jones Industrial average ending up about 50 points. We are just about 30 points off the high of the day. If you are just joining us, good afternoon welcome to closing bell. We need a sixhour show strong across the board, the fed did jolt the market higher ultimately we closed up it was the bond kind of proxy sectors that are doing the best, that is when yields go low er, and financials moving in the opposite direction. It was with a defensive tone and wasnt resoundingly higher. And even though they say theyre not targeting the exchange rate, and lower yields. Thats certainly what the market is telling us today. Josh brown is still with us. And michelle gerard, chief u. S. Economist at nat west markets. Jay bowel wrapping up his News Conference in the last hour. Here are some of the highlights. We maintained or policy Interest Rates, but made some significant changes to our statement. Since the beginning of the year, we have judged that our current policy stance was appropriate, and we should be patient in light of increased uncertainties, we now emphasize that the committee will closely monitors the implication, and will act as appropriate to be mindful of some ongoing crosscurrents, including trade developments and concerns about Global Growth. Committee participants expressed concerns many fomc he participants say that the case for accommodative has strengthened i would say there was not much support for cutting rates now, at this meeting. Does that take the possibility of rate cuts off the table . Its really trade developments so were not exclusively focused on that the law is clear i have a fouryear term and i fully intend to serve it by the way, powell said the work accommodation or accommodating, which is new for him, he said it five times its an audience of one i will accommodate you, not just in the june statement. Did he do enough to keep well, do you think hes going to get another does it matter . The president can tweet his home phone number. Anything could happen. I dont play that game i dont think i have an edge on that do you think its a worry for the markets . Apparently not. We have not cared in probably two years. Michelle gerard, how did fed chair powell change the outlook . He clearly suggested that the fed is much closer to cutting rates than i had thought we had expected lower rates by september. It looked like a pretty close call, quite honestly in the end they decided they would wait for more information, but we expect the most likely outcome will be the rate cut in july to me it seems its just a matter of when, not if futures zift off the back of todays meeting. Is this a buying opportunity we are overweight they think its some of the more beatendown cyclical factors, and assuming that the commit does not deteriorate further, than a lot of these areas that are more sickly call, and areas more sensitive to trade. Financials is a more cyclical area, but its also less sensitive to trade, so financials is one of our preferred overweight sectors right now because of that less tradesensitive tilt we havent found financials as sensitive to the yield curve as some might suspend, so when the tenyear threemonth yield curve is inverted, that it actually outperformed its less hinged and more hinged on some of the factors that could be big drivers, and grown within the sector. Regulatory risk than it was, and leverage in the sector and then the s p compared to where we are ten years ago, so from a quality standpoint, we like and hi, john. Hey, wilf you know, revenue came in at 11. 14 billion earnings per share nongaap, versus a buck seven expected the board of oracle declared a Cash Dividend of 24 cents per sha share. Braying income grew 7 , which drove high margin, and that is the application businesses low margin legacy of hardware business, which is a shift away, was a q4 gap of operating margin, the highest we have seen in five years. You see it up roughly 7 guidance on the calls. Ill be listening for it, guys all right, jon thank you. I think a report of active managers are underweight and the areas that push is into cloud are some of the most, the last few years over the xlk, its been a huge disappointment however, it looks like its indicating 56. That would be a new high that changes the narrative around this company. So i would not have a quick gut reaction to it lets see where it settles out tomorrow and see if people start to change their mind. The Growth Outlook in the u. S. , and you sounded more concerned . The statement itself didnt sound more caution cautious, but in the prepared remarks, you could hear the concerns that the committee has about the Global Growth outlook, and also interestingly will the inflation outlook. The inflation misses that we have seen is weighing on the fed as much as their concerns, and that honestly has how its gotten them to this point, where people are believe more accommodation is appropriate what sector do you want toby were more overweight consumer discretionary, industrials, tech and financial. With the and discretionary to overweight obviously the consumer is a lot better off than a few years ago, and consumer sector, this is an area where usually the sector performs now that were expecting rate cuts, we cant do better than it usually does, so we are overweight. Bling it back to a couple stocks i think theres certainly stocks that are key to the market now i agree with what was just said about the consumer i feel it is to some extent the only game in town. Disney, shattering through 140 right now, thats a new high walmart, incorrect, lu lu, this is like not a huge company, but i think its a walmart, starks, nothing as i menned , globally youre seeing a breakout, and these stocks are ridings that waive. And the fed and g20, it doesnt matter if youre someone thats been left behind and has missed them, thats where you get an opportunity to buy them. Thats what you want. Josh, jill and michelle, thank you ought for still ahead, huawei ceo is warning that google could be hit hard hard that interview day after day, you need to get it all done. And here to listen and help you through it all is bank of america. With the expertise and knowhow you need next so lets get after it. Everything is all right what would you like the power to do . ® all right i felt completely helpless. Thetrashed online, my entire career and business were in jeopardy. I called reputation defender. They were able to restore my good name. If youre under attack, i recommend calling reputation defender. And consider joining their groundbreaking campaign to give every american the right to remove old, inaccurate search results by going to righttobeforgotten. Org. If you have search results that are wrong or unfair, call reputation defender at 18778668555. We like drip coffee, layovers and waiting on hold. What we dont like is relying on fancy technology for help. Snail mail we were invited to a y2k party. Uh, didnt that happen, like, 20 years ago . Oh, look, karolyn, weve got a mathematician on our hands check it out now you can schedule a callback or reschedule an appointment, even on nights and weekends. Todays xfinity service. Simple. Easy. Awesome. Id rather not. We have breaking news. Treasury secretary Steven Mnuchin and Mick Mulvaney just left a meeting with congressional leaders. He will honor the full faith and credit of the United States. A one her year continuing resolution at least now we do know what the bottom line is trump wants to keep the government open. Ie ylan, thank you. New york times is reporting that some of which linked to jared kushner. President trumps Senior Adviser and soninlaw we have reached out to Deutsche Bank for a comment well come back with that when it comes in. Wilfred, back to you. Seema, thank you for that. Quite a long one, as they referred to a whist up blower. They flagged potential payments, including the kushner family, should also point out that its not just related, of course, to mr. Kushner, and also that other banks potentially also might fall under this investigation. That, according to this article. Just the latest in a string of bad headlines for Deutsche Bank, i mean, from all angles. Including mr. Drawingis comments about more easing. Stocks in the green today after the fed kept rates unchanged. Glo a. A whole other sector did now. It rantly was an so the banks moved down same thing with real estate. Thank to bertha cooperation, we have a fourth straight day of gains. Meantime adobe was the standout. Really impressing the street as tech shares moved higher in gent some of the lag guards included alphabet, which is still down a bit for the month were about 2. 5 away from april 24th alltime highs. Bertha, thank you very much. Huaweis ceo sat down for an interview with deidra bosa shes in shenzhen, china, with the highlights. He said that if President Trump were to call him, he would pick up the phone. Translator he would probably tweet first, and the white house spokesperson will speak first. What if some guy misguyed himself as President Trump how could i know this is President Trump i was talking to in. Of course i would like to lets work together, we can all contribute u. S. Is very leading in advance, and huawei will only lead in a very focused area the United States is still leading. Alphabet, which is reportedly advocating against the export ban. And if they dont have their systems, or revenues would drove, too there would be things we would have to shoulder, too. This is an issue of shared interest. Reporter if it doesnt work out and google is banned from supplying huawei phones with the operating system, he says hes not worried. Theyre developing their own o. S. Thank you for that. And all the clips on the interview throughout the date President Trump i think thats a snapshot of the way the chinese can affect this, because, ceos that are suffering arent slamming their leader. He says china hasnt slowed down, so the messages, at least nothing to see here. Which i thought was fascinating. They mentioned google speaking of, alphabet hosted the annual shoulder mean job lipton has some highlights. Reporter the vote here going as planned ten directors elected to the board one concern was china. Listen, there are no plans for such a certain product back to you guys josh, thank you. Still ahead on the show, congressman pats rick mchenry tells you exclusively why hes calling for heina arg on facebooks new cryptocurrency sit, and the impact that could have through the at t network, edgetoedge intelligence gives you the power to see every corner of your growing business. From using feedback to innovate. To introducing products faster. To managing website inventory. And network bandwidth. Giving you a nice big edge over your competition. Thats the power of edgetoedge intelligence. Ive done all sorts of research, read earnings reports, looked at chart patterns. Ive even built my own historic trading model. And youre still not sure if you want to make the trade . Exactly. Sounds like a case of analysis paralysis. Is there a cure . Td ameritrades trade desk. They can help gut check your strategies and answer all your toughest questions. Sounds perfect. See, your stress level was here and i got you down to here, ive done my job. Call for a strategy gut check with td ameritrade. We saw a pop in gold prices following the feds decision to leave things unchanged our next guest says the commodity could be on the verge of a breakout. You know what i really like is its been dormant roughly six years. Its a big base formation, just now starting to break south. You need to get it through 1400, but from a monetary perspective, the fed is probably in the right zone to maybe easier than what it probably could be, were not seeing it in copper, in and a breakout for the first time in a long time, we like it at the margin, you said it has already broken ute in other currency. Is that purely a factor . Or does that suggest momentous behind it thats due it tess all currencies are weak and the Central Banks globally are easier than it should be. The fed is tighter that is the other Central Banks, but against the for that goal, it looks a lot better. Weve also got second shots, something thats not particularly bullish, the transports. You would look at the transports, many of the industrials, particularly right here, when you look at the relative performance, which is rolling over the absolute chart is okay, but the relative performance is clearly weaker here is one of those where the market is telling us the weakness, but the Global Economy as per the transports where gold is telling us that things from a monetary perspective are probably at about the right level, it for the easing, on i think were on the verge to have a good pop in some of these names, not necessarily transport, that look like they already have a tailwind to them. Wonder if a group like the transports are more sensitive to the trade deadlines . Airlines look weak, which thats not a big deal truckers, which is really domestic look horrible, so its a Strange Group its a Strange Group, but a lot of big players that historically have a good lead are substantially weaker s p closed 2926. 52week high has happened it tells us were going to make new highs. Thanks so much for joining us. Times for a news update from sue herera. Hello, everyone heres whats happening at this hour the former leader of an update new york Selfhelp Group has been convicted of turning women into sex slaves. Keep rainieri found gild of trafficking. The prosecutors say the Organization Called nexium was more like a cult. He portrayed himself as a savant and a genius was a massive manipulator, con man and crime boss. The pilot who landed a plane in new yorks hudson river, sully sullen berger telling lawmakers that Simulator Training could have helped the pilots he was part of a panel on aviation this morning. We must investigate accidents before they happen we must all want pilots to experience these in simulators, and reading about it onnen a ipad is not even close to sufficient back down to you, sara we have an earnings alert on america outdoor brand. Seema . A decent report from american outdoor, formerly smith wesson revenue at 175. 7 million beating forecasts. It comes despite concerning it presents challenges for the firearms industry, and reduced consumer demand for firearms, nonetheless shares are up about 9 a reminder this company has a market cap of 500 million back to you. Seema, thank you very much. Still to come on closing bell, ranking mesh Patrick Mchenry will join us exclusively to tell us why hes calling for a hearing. If and well talk to this guy, managing partner scott kupor, whose firm is also backing libra. Sheryl sandberg addressed this in a keynote in cannes, france, earlier today. There are a billion people in the world who are not connected to the financial system. What we would like to do is help there be a global cry occurrence sit thats more inclusive. Were a long way from launch regulators have concerns we know we have a lot of work to do, but this is an announcement of what wed like to do, and were not going to run this. It will be an association not reporting to facebook. Federal reserve chair Jerome Powell was also about the cryptocurrency sit earlier today. Facebook, i believe, has made quite broad rounds around the world really with regulators, supervisors, and lots of people to discuss their plans that certainty excludes us congressman patrick mchenley joins us for an exclusive interview, ranking member, and is calling on on Maxine Walters to hold a hearing on libra thank you for joining us. Thank for you having me. Whats your take . Has facebook proved its responsible enough to be launching a currency well, look, facebook is the biggest possessor of consumer data in the world, so theres a great number of questions i have as a policymaker, but more holistically we need a better understanding on capitol hill about the potential benefits and opportunities of cryptocurrency and Blockchain Technology and why things are happening overseas and not here at home. So there are tons of questions that this raises, and we need serious answers. Jay powell, as you just heard, said they had he discussed this with facebook does that give you comfort that they did their homework . And its backed by a number of the top Central Banks in the country and top occurrence sis you have serious players, and the consortium looks very serious, about you theyre doing it in switzerland. That raises questions for me theyre having to go overseas, and it raises bigger questions as well, whether or not this is an openended cryptocurrency or a closedoff system, only utilized through facebook. So what are the permissions involved what access to consumer data will they have and how will they follow any moneylaundering provisions to ensure this is regulatorily permissible in the first world. If it got to the point where any cryptocurrency started to dominate the kind of playing field, as it were, should Central Banks step up to not allow them, to make sure the u. S. Does control the dollar and the transactions that take place in the country no, i think cryptocurrencies present a enormous opportunity, and those two things being inextricably linked, what were seeing is a great opportunity to reduce the costs of transactions, speed the flow, and i think theres enormous opportunity for that so just to be clear, are you launching a hearing to investigate and potentially regulate facebook . Or blockchain and cryptocurrencies these are two separate issues you can have a world view of whether or not facebook is a savior of the world or the death star, but the question of cryptocurrencies is a whole different discussion and utilization of the system they have what i have is for a hearing on the nature of what their proposing with project libra and the consortium, how they will utilize it, the opportunities and intention they have. Right now theres so little clarity on that. Thats what i think policymakers should understand. Im not judging it or prejudging it, but theres so many a open questions that i think we should be better informed. Should we feel threatened that facebook is launches its own currency i dont think threatened. You guys didnt hold a hearing when paypal started doing business this is dramatically different. Cryptocurrencies are different what we see here in the United States, though, is a lack of regulation or lack of regulatory understanding of what cryptocurrencies are theyre neither security nor a commodity, so how do you regulate something thats a wholly new and different approach in terms of technology. We need to update or regulation, update our laws to make sure we allow this production, and do so in a safe manner thats my longterm belief. I just want too switch the focus quickly and ask about wells fargo. Are you concerned that the time its taking to find a new permanent ceo . Jamie dimon said he felt it was irresponsible for them to let tim sloan go without a replacement lined up. I think it was a question the board had to make a decision on. Thats for the shores to determine. What we want toes is a wellrun institution, and provide that competitive force, so i dont think its necessarily proper for me as a lawmakers to actually get into the inworkings in the manage decisions. Congressman, thanks for a joining us. Thanks for having me. Representative mchenry. Well have much more on the proposed hearing tomorrow when we joined by House Financial Services committee chair, the aforementions maxine waters. Looking forward to that tomorrow on closing bell. A Founding Member at libra, perfect to have you here. Thanks for having me. Following the congressman so help explain this its not just him, its regulator of all around the world. We need to understand from the s. E. C. What the Regulatory Environment is that will govern crypto more generally. So they have shut down a lot of the icos we havent seen perspective regulation, i think what facebook is doing is trying to help get in front of that opportunity, and with a company like that, i think it may be our best chance. Why switzerland its what the congressman said its not entirely clear the regulatory status in the u. S i know the s. E. C. Has been working on it. I dont know the exact reason from facebooks perspective, but were seeing more Companies Generally in the crypto space jurisdictions outside the u. S. What about people who are scoped cal about the data that facebook has, some of the irresponsible behavior and whether it turns them into a shadow bank with even more personal data. I think theyre both fair questions. You know, i believe the government will and theyll address those issues this is a different project. If you think about it, theres ideas that are a lot of people even with paypal whos been around for a long time, theres a load of cunning you cant do business with paypal, so would you have a single distributed money that would allow people around the world to transact, i think thats a positive thing. I think the idea is its very hard on the internet because of the costs and fraud, to do a lot of transactional work today. So i think if internet money takes off, it would basically be an taken dote to those problems. Can you get local currencies to a appointed where people dont have to technical question if its for the unbanked, how do you transfer money in exchange for libra . Presumably there would be wallets built, and of course you will need fiat currency to get in there, but i dont know the details, but certainly theres i want to talk about slack in just a moment. Yeah. But more broadly, the slew of ipos we have seen in q2 in the broader tech space, does that surprise even you guys not really. In fact, if you look at it, at least were on track to do slightly more than we did last year so i dont think its a big deal if you talk to the fit dells, and blackrocks and t. Rowes, theres you are it an investor in slack, it should be a big experiment, because its a direct listing. Yeah. Also what we have seen lately from the company as widening operating losses, declining Revenue Growth and declining i cant talk specifically about the numbers or financial they are in a quiet period, as you know, but theres a very small set of companies, slack and spotify didnt need to raise primary capital, but i think it will be interest my guess is well see a few more, but not a hewn groundswell. Will you guys by selling a big chunk . There are no lockups. We havent made any decisions about what too do, but you are correct,ened a direction listing there are no traditional lockups. It a pricesensitive or strategic based on the the way we think about it our lps say we generally pay you to invest in private assets at some point in time when things are public and you feel like you can distribute them, morse of our lps will history lick you may do that, but tbd quite frankly. Scott kupor, thanks for being here today. Thanks. Boeing and airbus topping headlines today. And dont miss the ceo of caterpillar tomorrow on mad money. Money. Well be every day, invesco combines ideas with technology, data with inspiration, investors with solutions. Minutes. And everyone ive ever opioloved away from me. Thing everything. I blew my ankle out and i got prescribed pain pills by my doctor. If making my detox public is gonna help somebody im all for it. I just wish i wouldve had a warning. You mighyour joints. Ng for your heart. Or your digestion. So why wouldnt you take something for the most important part of you. Your brain. With an ingredient originally discovered in jellyfish, prevagen has been shown in Clinical Trials to improve shortterm memory. Prevagen. Healthier brain. Better life. Sglees we have an aerospace double play, boeing and airbus making headlines today phil le bebeau has more. Not surprising, the southwest pilots union says theyre missing out by their own estimate about 8. 5 million each month, because they are not ability to fly the 737 maxes as originally scheduled, so as a result they plan to seek compensation from boeing you may say, 8. 5 million a month thats not the end of the world, but what happens if other pilots unions say we want compensation as well. Remember, this would be separate from any compensation that being would be providing eventually to Southwest Airlines also keep in mind they were out with guidance, saying their cost per available seat mile will go up in the Second Quarter, but continuing developments. And then there is the competition, phil, so American Alliance will become the first to order a new airbus plane. What can you tell us this for the airbus a321 xlr, thats the extended long rain that they Just Launched over in paris. There are 50 that american has ordered. The deliversies start in 2023. The real question is, will there be use on new routes philadelphia to basel, switzerland. Theres not enough volume for the types of airplanes americans would, but it would be perfect for the xlr. This is about opening new routes american shares of american have been moving steadily higher within the last week shares are down over the last year, and when you look at boeing and airbus, i have the latest updates guys, i got the latest update in terms of orders at the air show airbus, 545 to boeings 234. Overall, we are expecting the fewest orders since 2016 philadelphia to switzerland, im not sure that ever will be one of the worlds busiest. It is not going to be the busiest, but theres demands there. Will, dont knock it theres demands there. People hear about the routes and say, oh, come on, how many people want to go to bosul look, the airlines would not be considering it if they didnt believe there was a Business Case there. Well, we will see im looking forward to being proved wrong on that one, phil quickly going back to the total numbers you just mentioned. Yes. Given we didnt get a chance to talk about it yesterday, how big a surprise was that massive order from British Airways for the 737 max . Very much a surprise. In part because this is British Airways and iberia, the parent iag, theyre basically saying, you know what . Were going to flip back over to the boeing 737 what was interesting, will, not once in the release from iag was there a mention of max they didnt use the term max. They called them the 7378 73710 yes, thats technically their name, but i think you will see more airlines do this in the future if they order maxes it is just one of those words that right now people say, what, whats going on with the max so iag did not even mention it in their release. Okay. Phil lebeau, thanks very much. Im looking at who is based in bosul. The soccer team is. Phil im sure knows more than me on this but well see if it becomes a big route in the future still ahead, riding into china. Thats what motorcycle maker harleydavidson is doing the company is ramping up its overseas production. Also, bank capital rules there. Ig rht international settlement, thats why we would go to bosul. Thats why we would go, via philadelphia on the way there probably. Probably. Well be right back were exploring quantum to develop next generation energy. Were using ai to help create more Accessible Health care. Were using iot to create new kinds of digital wallets. Smaller bikes, Morgan Brennan has that story. Thats right. Harley is partnering to launch the smallest motorcycle in decades, with an engine displacement of 338 cubic centimeters, the bike is to be made in china for china and available for sale by the end of 2020 why this is significant. This will be the first harleybranded bike not manufactured by harley at its own facilities so chinas a key growth area for the iconic american Manufacturer Retail sales jumped 27 there last year, year on year. But for harley, this partnership, this collaboration is really a oneoff. It is a focus on expanding the Customer Base in china and potentially i think it is doing so well there, other asian markets as well. Guys. Looks kind of cool that bike as well, not the typical the fpical harley morgan. Or sure. Thank you very much for that. Up next, wall street, a look ahead. The key things every investor needs to look at ahead of tomorrow after my dvt blood clot. I wondered, is another one around the corner. Or could it be different than i thought . I wanted to help protect myself. My doctor recommended eliquis. Eliquis is proven to treat and help prevent another dvt or pe blood clot. Almost 98 percent of patients on eliquis didnt experience another. And eliquis has significantly less major bleeding than the standard treatment. Eliquis is fdaapproved and has both. Dont stop eliquis unless your doctor tells you to. Eliquis can cause serious and in rare cases fatal bleeding. Dont take eliquis if you have an artificial heart valve or abnormal bleeding. If you had a spinal injection while on eliquis call your doctor right away if you have tingling, numbness, or muscle weakness. While taking eliquis, you may bruise more easily. And it may take longer than usual for bleeding to stop. Seek immediate medical care for sudden signs of bleeding, like unusual bruising. Eliquis may increase your bleeding risk if you take certain medicines. Tell your doctor about all planned medical or dental procedures. Whats around the corner could be surprising. Ask your doctor about eliquis. Squa welcome back time for our wall street look ahead. Slack set to make its direct listing tomorrow and Canopy Growth slated for the latest earning results. Lets start with leslie on what to expect. We expect slack to set a Reference Price tonight ahead of the direct listing it is not the same as an ipo price because no shares will be sold at that price and it is also not necessarily indicative of where slack shares will open for trading tomorrow, but it is a starting point for slacks Market Makers and Financial Advisers to begin matching orders from buyers and sellers ahead of the direct listing. Slack shares will be listed right here on the nyse under the symbol work and should begin trading by midday tomorrow guys. Leslie, thank you in the meantime Canopy Growth is set for growth after the market. Aditi roy. They boosted sales growth by more than 300 last quarter. Investors will look to see if the company can maintain that growth they are looking at revenues of 92. 6 million and a loss of 36 on the bottom line canopys plan for when canadas market opens up for edibles in december we will look to see if they leverage their partnership with Constellation Brands analysts want to know about the companys Production Capacity and ability to scale up. We are waiting any minute for a result of a shareholder vote on the acreage deal and looking for commentary on the call about that back to you guys. Aditi, thank you very much for that 30 seconds left, sarah a wellexecuted dovish tone from the fed chair without any dovish action in supportive markets but only slightly up, 0. 3 . How will the president respond i think is one question and how far will this market go in pricing in more cuts. The fed shifted into that position the market was already there and the rates went down even further today. So will the market expect more, more, more, more accommodation we will have to wait and see. S p finishing 0. 3 that does it for closing bell. Fast money begins right now. Fast money starts right now. Live from the Nasdaq Market center overlooking new york citys time square im melissa leer we have traders on the desk. Tonight, the s p 500 is less than 1 away from record highs and a top technician says theres one beaten down group of stocks thats the best bet to kaech the rally. We start off with the Federal Reserve chairman Jerome Powell sitting on the sidelines with no rate cut let