Looking at this morning. We believe these early indications have bounced, is it showing signs of stability . Its tentative. Being oversold, which is just a measure of how far and fast the market has gone down relative to its trend is just one of those ingredients. It is a precondition for maybe finding our footing. After yesterdays close, the s p 500 was basically oversold as it had been back toward march. We did have trading lows. I still think youll need to see bond yields sustainably calm down a little bit. We cant have this sense we have this disorderly rise in yields. The market is trying to reckon what that means to me for the economy. I dont think its a straight compute the valuation of equities rel to bonds. Its more can we handle what rates are throwing at the economy. The s p 500 down 6 from its high, peak to trough yesterday. The average stock down 8 to 10 . Its getting toward a proper correction. Theres downside in the s p, another 3 , 4 , Something Like that. I think my co
The back story to me, the bank of japan couple of weeks ago, mario draghi, and those her bombshell announcements. Point, as Steve Stanley said, the fed will need to stand up and punched the markets in the mouth, and tell them to stop bullying them because every time they told him to do something, the markets have a reaction. We have that in january and now all that has passed. Scarlet and the fed has a dual mandate, all in placement and price stability. With the labor market approaching of full employment, 4. 9 , is the fed putting more weight on the inflation mandate . A key question, and i dont know if we could go inside the bloomberg terminal, but you can see the core rate of , february, rose to 2. 3 . We are getting into territory where the fed would normally be worried. It seems to be accelerating two months in a row. Even no gasoline and oil prices are falling significantly. Scarlet that is the latest inflation rate in the fed will need to consider when they make the decision tod
Closely. Crude is back below 37. There hasnt been a rate hike since 06. That decision will come out at 2 00 p. M. Eastern time. Chair yellen scheduled to hold a News Conference a half hour later. Cnbc will bring you complete coverage of the big fed event. Reminders of where we were on pop culture on june 29, 2006. Its been a long journey. Its been a long journey this year as we agonized about whether or not they would raise rates. During the course of that year, the stock market is basically more or less where we started. The tenyear treasury is basically, after this back and forth during the course of the year, basically back where we started. The big mover is the dollar index. The euro down 9 . Thats partly you what see in the corporate earnings. You do have oil down sharply. You have the junk bond market reeling despite the fact that Interest Rates have been so low, we have seen record high yield issuance this year again, emerging markets are weak again. Weve been asking the questio
Fed to hike. Tens around 2. 15 and oil is north of 46. Road map begins with the jobs number falling short of estimates and whether this changes the math for the fed in september. And disney flexes its promotional muscle. Force friday is upon us and star wars merchandise is already selling out. Also ahead, no news is good news, or no news is news. Twitters Board Meeting comes and goes without a ceo announcement. First up the ball is in the feds court. 173,000 nonforeign jobs developed in august. Thats below consensus. Marks the smallest gains in five months. Unemployment rate falls. 2. Thats close to a 7. 5 year low. We had some we mentioned the revisions. August tends to be revised up on average about 75,000. Again, the talk is where is that line for the fed . What would have been Strong Enough for them to hike, lacquer on the tape saying he didnt care about this number h. Hes ready to move. We knew that from the title of his speech. People will Start Talking about the fact that you me
January the committee saw data that led it to be quite a bit more optimistic about the economic outlook. So i would say incoming data since january when our statement sounded quite an optimistic tone partly down due to weather and partly down because we probably overdid the optimism inform january, so in some sense our views have moved around here a little bit, but if we take december to march, committees views are largely unchanged. Youve served on the fed previously. Im wondering now in the past few weeks as chairwoman, whats been different about being on the fed and your responsibilities as chair compared to being just a board of governor member . Well, thanks. I feel im very lucky that ive had a lot of fed experience to draw on as i approach this role because its complicated and now in many ways i feel the buck stops with me in terms of management of the fomc and responsibility to assure that the Federal Reserve makes progress on its goals of getting the economy back on track and m