The cover figure on this week. Fed chairman jay powell. Joel jay powell is probably the most important person in the world of finance. He has the Financial Institution that is probably the most important whenever institution anywhere in the world. For a year now, he has been the target of trumps twitter either. Trump just once lower rates, lower rates, lower rates. Wants lower rates, lower rates, lower rates. Carol they have been an agency for so long. We are wondering if they will remain that way. The market thinks they will be a rate cut. The bigger story is one that we wanted to ask chris to dig into. For a year now, we have been living through this tension between trump and how. More trump than powell. It is onesided. Chris got to is that there is not much of an effect on policy standpoint for the fed. This will take a few months to evolve. This could be radical. Shelton is nominated for the fed. We dont know how that will go nor what you might do if she gets into that seat. A good
Costs and passing them on to their customers. Quite a reluctance among firms to do that in the past. Now a little bit more willingness and ability apparently to do that to it janetnecessarily resolve yellens mystery over low inflation but it is a glimmer of hope for people hoping the inflation rate will rise closer to the feds 2 target. All of this is happening in the context of an ever tightening labor market. This is something we are hearing over and over from just about every fed district. Its getting more difficult for companies to fill open positions, find qualified people and thats restraining their ability to grow. One tidbit from this report that i have to share with you is from the dallas fed. Worker shortages were reported throughout the oil and Gas Supply Chain and in construction. Similar reports came from care,cturing, health airlines. Some banks reported labor was becoming a bigger issue than Regulatory Compliance. You guys have heard a lot of in recentg from banks years
Crude is rebounding a little bit after a couple of days of a selloff. The euro is weakening against the dollar because the u. S. Dollar has been strengthening so much over the past few days. That yield curve spread is actually widening for a change. Its up a little bit. I have been watching this. The greek has come down. It has gone down about 4. 5 . David that is remarkable. It is jobs day. We are going to get those u. S. Jobs numbers for november. Spacex will be launching a falcon 9 rocket to deliver cargo to the International Space station. When bitcoin day it comes to wall street. Futures contracts on the cryptocurrencies, the banks are figuring out how theyre going to respond to all of this. Its time to our first take. We discussed the top three stories of the morning. Up first is the deal on brexit. Theresa may got the goahead it. The second story, the rise in the u. S. Stock market pointing to more gains through the end of the year. , u. S. G news coming out jobs numbers for nov
Congressional leaders of both parties. Lawmakers repeatedly punted on the issue of a spending plan last year. Now have until january 19 until two p something together. To flush and a corresponding Kevin Cirilli is on capitol hill with the latest. Kevin, this meeting coming up in less than two hours. Give us the just. What are we expecting today . What do they hope to achieve . To be a fly on the wall for this meeting. To discuss with lawmakers about that january 19 deadline. You will remember back in december, they pass that shortterm continuing resolution. Now they have to get together and have a longer version of that before january 19 in order to avert that partial government shutdown. What this is going to come down to is daca in the issue of immigration. Democrats are saying they are united in their opposition. Aidet spoke with a senior to a prominent democratic senator before coming on air. They told me these protest groups for the past several weeks have been focusing on democra
Xpectations. Still, a majority of the committee were clearly in favor of the rate hike that the fed went ahead within december, and the majority of the committee are still expressing some confidence that inflation in the mediumterm is going to move back to 2 . But there is a sense that confidence in that is slipping a bit. That matches up with the feds forecast, the dots that we saw last month. The median for rate hike projections asked year is three, but their worst next year is three, but there were Six Committee members below that meeting. Ledave a more hawkish group by people like Loretta Mester in cleveland, and they are more concerned about a severe undershoot of unemployment in 2018, possibly leading to a bump in inflation. And here is another interesting quote i found in the minutes. Participants discussed several couldthat, if realized, result in a steeper path of increases in the target rate. They mentioned those risks include the economy expanding well beyond its maximum sus