Maria he sure did, nearly 50 years later Charles Schwab is still disrupting the Financial Service industry as he did this past week with 0 commission news. We will get to that coming up. The Federal Reserve meeting is into a half weeks and widely expected. The fed will cut rates another quarter of a point, after the september Meeting Minutes were released this week showing a divide on whether or not to cut rates in the near term future. Federal reserve president is with me now, he is not a Voting Member of the fed this year but participate in meetings regarding policy and were happy to have you. I want to ask you, the backdrop of the economy right now, you have said you are happy with what the fed has been doing. But not necessarily sure we need another cut so quickly. Right now the data is mixed. On one hand the u. S. Consumer is still very strong. Most americans have jobs and wages are increasing. Family some money in their pockets and spending. That is good for 70 of the economy, on the other hand businesses are pulling back, seem to be nervous and nervous about the trade war, investment seems to be slowing. The data is a little bit mixed. Generally speaking, i think we should provide support to the economy. I think right now rates are run neutral. I think ill be in favor of another rate cut, how many more we have to go will depend on the data. One thing we look at is weakening cap ex, businesses are still spending on the software purchases, technology purchases. But you think businesses are sitting on cash because uncertainty around trade . Thats what we hear. I travel and meet with a lot of businesses, but farmers are absolutely nervous. Theyre suffering from low prices and have been suffering for number of years. Now you hear manufacturers are nervous. Some export and nervous about trade worse, some are nervous about their global environment. We know europe is slowing, china slowing so i think there is anxiety causing people upon. Maria what can you tell us about your region in minneapolis, do you see a weakening there . I know there was worry or speculation that then employment rate was picking up . The official on employment rate has picked up from low levels. I am not hearing businesses saying theyre laying off workers, im hearing more cautious about how many more they will hire. It was just noise in the data but something were paying attention to. Maria this upcoming week we will get another window into what is going on with thirdquarter earnings. Big banks will be reporting like j. P. Morgan and city among others. What do you expect of the banking sector. Do you think there is enough capital . You think the Balance Sheets are strong . How do you categories bank. I think they have a lot more capital than they had before the financial crisis. I think the Balance Sheets are generally healthy. Ive been a advocate that they need more capital. In terms of how the banks are doing relative to the current economic environment they seem fine. We will see what happens in terms of the guidance. Do you expect things will pick up a 2020 or we will be stuck in a uncertainty mode . It seems like will be in uncertainty mode for a while. A lot of the excitement and optimism from a tax cut in the election led to excitement. Some of that is fading in our going back to trend growth in its more modernist growth environment. Maria what are the metrics that you do most of point where you assess where we are. Labor market a lot, it is so growing but slow relative to what it was a couple years ago. There about 135,000 jobs us down from 195,000 jobs a month a year or two ago. And im looking at wage growth, wages are picking up the only picking up slowly and wage growth has suffered from earlier in the year. To me the key is, is the labor market going to keep being strong, keep drawing workers back in. You have said over the last couple of weeks, your best case canaria is not a recession. Its mixeduse, the consumer is strong, people have jobs, the bad news is, the cautionary news, business seemed nervous. I think the economy will grow but i think some of the Downside Risks have increased. How significant are the china meetings . I know this is not something you focused on in dictating rate moves, but you got the chinese and u. S. Officials saying things have gone well and maybe there be a trader, but that a president has you cannot do a big deal without the intellectual property theft being on the table. Do you think will get a deal with china . And how important economic growth. I think its important, i think the uncertainties are the big elephant weighed down in the business community. Thats what i hear. I never hear businesses say were worried about the Federal Reserve, they say we want to see clarity on trade and where it will go. If there was a trade yet itll be positive for the u. S. Economy. Your guess is as good as mine as to whether there will be a deal. Maria do you see any disruption as a result of the noise going on in washington whether impeachment inquiry or the solid situation of usmc . Executive committee to anything. Not that i am hearing. My district is very export sensitive. We have farmers around the world, manufactures rather well, i dont hear much talk there used to a lot of contention washington. That is the normal that the you stupid. Maria you mentioned wages, they have gone up 3 year over year end i am looking at research from the lindsay group, he says that income and equality has declined. Are you seeing any change in terms of the bottom level of people on the income scale in terms of their contribution to the economy and their potential for growth . Absolutely, this is the miracle the last few years. The fastest wage growth is happy for the entrylevel in the lower paged underpaid workers. The longoverdue for race. Thats right so important we keep the economy growing so those who have been left behind are getting a chance to participate. Maria it is great to see you. Thank you for joining us. The president of the minneapolis Federal Reserve. Dont go anywhere i want one with chuck schwab is up next. Worked as free stock trading mean for charles while bottom line. We make it up quite easy. Goes oneonone with the legend when wall street returns. Aleve is proven better on pain than tylenol. When pain happens, aleve it. All day strong. Performance comes in lots of flavors. dramatic orchestra theres the ampedup, overtuned, feedingfrenzyof sheetmetalkind. And then theres performance that just leaves you feeling better as a result. Thats the kind lincolns about. Colon Cancer Screening for people 50 and older at average risk. I took your advice and asked my doctor to order cologuard, that noninvasive colon Cancer Screening test. The delivery guy just dropped it off. Our doctor says it uses advanced science. Its actually stool Dna Technology that finds 92 percent of colon cancers. No prep, and private. Colon Cancer Screening thats as easy as get, go, gone. Ask your doctor if cologuard is right for you. Covered by medicare and most major insurers. Maria this week for investors in the industry as Charles Schwab company cut their online commissions to 0. That led 12 competitors tv ameritrade infidelity to follow suit cutting their rates to 0 as well this past week, and my exclusive interview Charles Schwab explains the race to 0. You know, we have always been about lowering the price for investors, make it easier, cheaper, slicker to be able to beat the investor. We want more people to put more money into investing. That way they become participants in our great economy and get rewarded. Its not impacting you that much, you said the hit in terms of margin or profits will be 4 of revenue. It would be 4 of revenue, it impacts our profit some degree. But we know we will have growth in the future and make it up in the next year. Tell me how you make it up, because youre not making any money on trading. And we have seen a race to the bottom. Over the years we added more services along the way. Whether managed accounts are different kinds of Wealth Management capabilities, weve added a bank, mutual funds, et cetera. So now, commission is only account for six or 7 of our revenue and in this case the free part of the think it reduced our revenue by about 4 . I think we can make that up. What you hear from investors today in terms of the environment out there, were talking about record low Interest Rates in the united states, negative rates in europe. Obviously craziness and volatility in washington. The democrats and republicans fighting and want to take President Trump down. What is most important for investors . Being in the game and adding to your account over a period of time, sometimes their height and sometimes low, over the long run, if you look at the longterm, five years, ten years, 20 years, the pathway is always on the upward trend. In terms of wealth creation, the best path is stock investing. Our good friend jeremy says its absolutely the case. In terms of the sentiment today, do you see sentiment changing anyway as a result of headwinds. Sentiment is about what the president news is, news is always issue, you could pick up the paper of any time period of the past and see the problems of the moment. There is always problems of the moment. And they get cleared up in change in life moves on. Maria dont lose your focus what about the fed. We will have a meeting in another couple of weeks, 70 chance that the fed lowers Interest Rates. Do you expect to cut . I think they can always adjust but the next right thing to do improves the things for consumers, lowers installation and cost of interest. It is fine, although it does not need to occur when you have three have unemployment issue. We are really a roaring economy in many respects. So you have to be careful about that. You dont want to create an element for inflation which is well in the control right now. I think inflation has been mitigated so much by the internet. The prices have come down whether amazon our case that swab were reduced rates to 0. It is all part of the efficiency that hate we have gotten out of the internet. Thats one thing that allowed us to cut rate was simply the efficiency that we have a transaction. The cost of doing a transaction is quite minimal because of technology. We passed the savings on tour consumer. When you see lower Interest Rates, that cuts into profit right . Does to some degree but Interest Rates are highly volatile over a period of time and they go down and come back up. So you just have to be in the swing that markets do swing. Where you see growth right now . When you look across economy, youre right about the economic signals, 50 or low unemployment, consumer seems to be steady, do you want to identify areas of growth that you think are good spots for people to consider in terms of investment . You have to be medical science has been fantastic. Look at the results we have seen. People on average 20 years ago, 25 years ago died of an average age of 65, today is moving worse closely to 85. What happened, what was the change, although biotechnology has come into place, drugs, better services, operations. Maria were getting ahead of disease with wellness. Exactly. Lots of money goes into that and we as consumers are beneficiaries of the everyday. It is because of our investments in technology. Maria forward Charles Schwab will may come right back. Stay with us. With wall street against him had he built a multitrillion dollar firm. Wall street was not ready to finance. More with marias sitdown were Charles Schwab when we return. Imagine traveling hasslefree with your golf clubs. Now you can, with shipsticks. Com no more lugging your clubs through the airport or risk having your clubs lost or damaged by the airlines. Sending your own clubs ahead with shipsticks. Com makes it fast easy to get to your golf destination. With just a few clicks or a phone call, well pick up and deliver your clubs ontime, guaranteed, for as low as 39. 99. Shipsticks. Com saves you time and money. Make it simple. Make it ship sticks. Doprevagen is the number oneild mempharmacistrecommendeding . Shipsticks. Com saves you time and money. Memory support brand. You can find it in the vitamin aisle in stores everywhere. Prevagen. Healthier brain. Better life. 2,000 fence posts. 900 acres. 48 bales. All before lunch, which we caught last saturday. We earn our scars. We wear our work ethic. We work until the works done. And when it is, a few hours of shuteye to rest up for tomorrow, the day well finally get something done. the day well finally get something done. They give us excellent customer otservice, every time. E. Our 18 year old was in an accident. Usaa took care of her car rental, and getting her car towed. All i had to take care of was making sure that my daughter was ok. If i met another veteran, and they were with another insurance company, i would tell them, you need to join usaa because they have better rates, and better service. Were the gomez family. Were the rivera family. Were the kirby family, and we are usaa members for life. Get your Auto Insurance quote today. Thats why Xfinity Mobile lets you design your own data. You can share 1, 3, or 10 gigs of data between lines, mix in lines of unlimited, and switch it up at any time. All with millions of secure wifi hotspots and the best lte everywhere else. Its a different kind of wireless network, designed to save you money. Switch and save up to 400 a year on your wireless bill. Plus, get 250 back when you buy an eligible phone. Thats simple. Easy. Awesome. Call, click, or visit a store today. Maria welcome back, over a 50 year. Charles schwab built thbuilta powerhouse in the backe 70s, to date a bank and a Wealth Management company with assets under management of 4 trillion. He writes about how he did in his new book, and vested. Its an amazing memoir on how we built the financial empire. How did you do it . For dedicated people, four. Now we have 20000. With a purpose in mind trying to create a different type of brokerage company. I had so much brilliance Investment Analyst as a portfolio manager, just out of business school, i find other Brokerage Industries are broken, they were based upon very high commissions, stories that were somewhat questionable stories on how to make money in the stock market and so forth. It was all about a big sales pitch. I thought there must be another Brokerage Firm that we could create for people who are selfdirected investors, free of all the fluff that they had before and that was the beginning and we ran ads, people came in and a few more ads, more people came in and all of a sudden, we have a business. Maria you started with how much, how much money did you need to start a brokerage . I borrowed 100,000. Maria thats all you needed to get started. I needed a lot more it turns out overtime so i had to scrape tomorrow along the way to mortgage the house and do all kinds of things to make it happen. Because wall street was not about ready to finance me. Wall street was against you because you were offering rockbottom fees our Business Models and along the way, they had no interest in putting any money behind your company. I love the story when you had the big market crash, you felt bad for your clients, i want to give it back and make you whole. Sometimes doing the right thing is painful at the moment but its always the right thing. The trends in term of the 35 year period since the founding of this company, the trends have changed, tell me what the biggest evolution or change that youve seen over the period in terms of Financial Services. Is the empowerment of the individual, more information, what do you take away . I think people understand they are living longer and they have to do a good job of building their own nest and known wealth nest. I think that has gotten into the fabric of america. So people are curious so they start the 401k with your company or ira accounts, all those things governments made these things possible for people. So i think people are now telling their kids, they better do investing because we all are living longer, and the government will not take care of our needs when we get to the retirement years. So we have to live on her own paycheck, not on the paycheck we used to get from the company we worked for. Obviously china was the big story this week, you have offices in a business in hong kong. What is your take on the u. S. Pushing back on china because of the intellectual property theft and so many others she. I think the wto we signed a china 15 years ago, whenever it was, in some ways i dont think they provided by the exact spirit of the wto. They break promises. Free trade, we want to get them to a fair trade. But free trade is not what a communist country whether its russia or north korea, we would need to get mechanism between the two countries, we understand there communist country so the enterprises owned by government or supported by government. Different than america were all her business is free of government other than taking taxes. The regulatory to make sure quality is right. So we have two different economies. One in economist country and won a Free Enterprise country. As america is. Mixing and matching is not an easy thing. Thats why its so complicated, the negotiations have gone on and hopefully the resolution or part of the resolution, i dont think itll be resolved completely, i hope it will become very available before the year is out. Maria this is a debate about values. Communism versus capitalism. Have you seen any impact to your business as a result of the 2 Million People in the streets in hong kong pushing back on china authoritarian rule . I think the Hong Kong Office has reduced its trading. People are more focused on the issues of retaining and holding onto democratic principles and hong kong. And theres a 50 Year Agreement made between britain and china at the time back in the late 2000s. And hopefully that will be sustained and they will abide by that without bringing a true crisis at this moment in time. How significant was the taxcut plan for your. Too to us it was significant and increase cash flow by 30 . That was a big number, so many more expansions and big buildings and places for our employees to move to. Its added to technological portfolio because of that and the new products i talked about earlier, tax bill allowed us to have more money available to do more things for our customer. You created more jobs. We created a lot more jobs. Many more jobs. Maria my thanks to Charles Schwab, dont go anywhere. More wall street right after this. Cats. So, we got griswalda. Dinners almost ready. 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I still have this car so you can afford to go. I am so proud of you. Thanks. Principal. We can help you plan for that. Start today at principal. Com. Maria welcome back coming up next weekend, we are right in the middle of earnings season, we have another big show, my special guest anna joining us next year next weekend this time. I will see you again on the fox news channel, join me live 10 0y morning and i speak with North Carolina congressman in georgia congressman. My special guest, catch a show live on 10 00 a. M. Sunday. Every weekday i hope you start smart from 6 9 with mornings with maria on fox business. We set the tone for the day and hope you are there. Have a great rest of the weekend. Without will do it for tonight and this weekend. I will see you next time. Hello and welcome to the wall street journal at large. Already wrapped up the controversy surrounding the impeachment inquiry in the house, President Trump created another firestorm by announcing the small contingent of troops in syria stationed along the Turkish Border will be pulled out of the region. The president said it was fulfilling his Campaign Promise to get america out of in those wars. This despite the fact that later on friday he announced deployment of more u. S. Forces to saudi