Ahead of the. Connell the story has been there for years and the effect of the Federal Reserve easing money policy. You would think on the economy and the Federal Reserve is able to prop up and help our economy here over the last few years, some would argue our economy should have been strong or you wont get the argument that the stock market should have been stronger, no doubt the Federal Reserve has helped stockmarket. Submitted into evidence, the Federal Reserve Balance Sheet compared to the Dow Jones Industrial average and the two charts basically track each other. What does that mean, the Federal Reserve Balance Sheet is the fed pumping money into the economy, what has been known as quantitative easing, buy bonds, keep Interest Rates low, stocks have gone up. The theory here and the evidence and the chart is here to support it that the fed who you think would be there to support the economy and help the economy for years has been helping the stock market so what will happen to the
Were looking at 1. 5 growth. That is better than no growth but still not typical recovery growth which is what worries greg smith. You have been looking at this for a long time. It is the strength of this recovery that concerns you. It is still percolating along but not robustly. What you worried about . It is percolating, you stole my thunder, you average two quarters out. Neil of i dont Connell Mcshane will come up with the chart. If you go back to 20122013 the Commerce Department this 2 growth rate seems to be the norm. The lowest since any recovery since the Second World War and here is what concerns me. Fiscal policy is not working. Wind will jack lew and penny said down and say this policy is not working, we need to change course . The fed policies zero Interest Rates, not working. Neil we are not back to the rates, were certainly back of the maps and why dont cynics like craig realize that . They are wrong. There is so much malloy investment going on now as a result of zero rate
Cooperation with the Houston Police department and our partners have effected 290 water rescues since midnight last night. Neil all right. Epicenter financially, just sheer breath and scope a incredible storm, houston, texas, that is where you find our jeff flock. What is the latest there in. Reporter neil, here is the problem, we had a break in the rain. Seems things improved. They have releasing water out after couple different reservoirs so they dont compromise the dams. These people have never had flood problems before, but you now think you might be on the edge of a problem . Very much so, actually with the dam releases this is all from the dam releases, because they dont want the dam to breach. This basically has come overnight. We never had water anywhere close to this house. It is very close now. Reporter if they dont release on the dams they may potentially lose the dams and downtown understand. Absolutely understand. It is just scary. Reporter you said you heard they will rel
How about the euro, sitting at 1. 20 right now there is the yen at 108. 58 the pound, just watching that one as well. How about treasury yields. Incredible low levels for all that we are talking about in terms of the u. S. Economic impact we are going to get jobless claims thursday and we have the jobs claim friday. That is nowhere near where you would expect it to be. The dollar hit the lowest level. Gold has been on a run. Of course, the yen thats your barometer right there. The german tenure is down to 33 basis points again you had been pushing above. 4 people thought that was an important level. Now, we are back in that world where our yield is getting dragged down the gold price, 1,325 after the launch, people in japan were told to take shelter before it passed over. People got Text Messages and were broadcast i dont know if it is part of their automatic system i would be a little terrified, thats for sure. We showed the Energy Charts in there as well. Not a ton of movement in tha
Exchange on cnbc. Im wilfred frost. Im Courtney Reagan in for sara eisen nice to have you here today not on my own. Youre not on your own. We didnt strand you today very nice i feel relaxed good to have you back here lets have a look at the markets. The fed remains center on wall street today investors continue to digest the news that the central bank will begin winding down its 4 4. 5 trillion Balance Sheet next month. Yesterday the markets did not sell off the dow was up 0. 2 . The s p and nasdaq were either side of flat there was even room for bank stocks to rally the best part of a percent. Energy is the best performing sector bottom line is markets did not sell off theyre not selling off again today. Essentially flat in the premarket. Tenyear treasury note we did see a reaction. The peak was just shy of 2. 29 yields did increase. We are just slipping down a bit from there in general, the reaction was yields up a bit, and yield curve flattening a little bit. Of course yields had al