Economy. Well be looking for things affecting the outlook of the u. S. Economy, particularly as it relates to zblrchlts all those things in principle can affect the achievement of our goals its an unusual situation because you know the u. S. Economy itself, the largest part of it, the consumer part of it, is in strong shape the manufacturing part, less so. Overall you see an economy that generally forecast shows growth similar to our own forecast coming in at about 2 . Significant risks to that outlook from not just the geopolitical events but slowing Global Growth. Well be looking at all of that and also Financial Market conditions and how they are affecting the outlook. I cant it is a challenging time i admit it were not on a preset course well be making decisions meeting by meeting as we see this and well try to be as trance parent as we can, as we go. Sparent as we can, as we go with the rate cut today and modest adjustment coming down the road, do you worry about lessening the feds fire power should there be a recession . Is there any scenario in which you envision rates shifting lower into negative territory, and are there any other tools you can use before having to go there . Thank thanks. You know, in terms of fire paragraph, i think the general principle, as i mentioned earlier, is it can be a mistake to try to hold on to your fire power until a downturn Gains Momentum and so as a fair amount of research that would show that thats the case. Now i think that principle needs to be applied carefully to the situation at hand. What we believe were facing here, what we think were facing here is a situation which can be addressed and should be addressed with moderate adjustments to the federal funds rate as i mentioned, we are watching carefully to see whether that is the case if, in fact, the economy weakens more, then were prepared to be aggressive and will do so if it turns out to be appropriate. We chose to do aggressive Forward Guidance, the two unconventional Monetary Policy tools we used extensively. We feel they worked very well. We did not use negative rates. I think if we were to find ourselves at some future date again at the effective lower not something we are expecting, then i think we would look at use i using largescale asset purchases and Forward Guidance i do not think we would be looking at using negative rates. I dont think those would be at the top of our list. We are in the middle of a Monetary Policy review where were looking through all of these questions about the larger run framework, strategy, tools and communications and we expect that to be completed some time around the middle of next year. Don lee with the l. A. Times how much to what extent will it offset the negative effects of the trade uncertainty and tepgss so in terms of how our rate cuts will affect the real economy, first we think Monetary Policy works with long and variable lags. The effects will be felt overtime we think it will reduce interest burden for borrowers and other things supports purchases of those. I also think theres a confidence channel turn up when financial conditions become more accommodating. Monetary policy works. It isnt precisely the right tool for every sing le economy it broadly works and well use the tool we have its very hard to say. Its tough to say. Well use our tools to offset negative thats the job. Are you worried that the low Interest Rates are adding to or decree at a bubble of consumer and corporate debt that could make it more difficult for specialty consumers to recover from the next recession or survive the next recession . The household sector as an afgregate matter is in very good shape. Its studied a lot and the situation there is that the level of debt relative to gdp in the business sector is at a high level. However, so is the business sector during a long cycle there arent downturns. Now into our 11th year, our view still is that thats a real issue. What it really represents is potential amplifier of economic downturn it does not have the makings of anything or itself create a shot its more of an amplifier. We take it seriously, though its a subject of study and work were trying to keep on top of it. Thank you, chairman powell. Theres a sense of people that the economy is actually starting to slow now. So is the economy over the next year between now and next year, do you think gdp growth will hold steady . How do you see the economy evolving over the next year . I think thats widely shared among forecasters. Its that dploebl growth will have an affect less so than any other economy. Still theres a sector of the economy. Apparently it has an affect the job of Monetary Policy is to adjust to ensure Downside Risks but also to support the economy in light of the existing weakness that we do see. We dont see a recession or forecasting a recession. Were hearing the bond market signaling recession. So that signal is not pertinent to you its not theres no one thing that is dispositive among all financial yield curve is something we follow carefully. Just to talk about current situation, longterm rates move down a whole lot and retrace generally material changes that are sustained for a period of time why are longterm rates low . There can be a signal for sure theres a large quantity of negative and very low yielding sovereign debt inevitably exerting pressure on u. S. Rates. Nevertheless that is a signal of weak Global Growth that would affect us. Were not going to be dismissive about the yield curve. On the committee theres a range of views, some who are very focused on the yield curve, others not so much from our perspective, you watch it carefully and you need to ask why that is and how long its sustained. You mentioned trade policy being a complex, ongoing discussion. What is your rule for stopping as far as Interest Rate cuts go . You referred to this as a midcycle adjustment the median dot suggests no m cu. If we get continued back and forth between the u. S. And china, trade policy remains heightened at what point do you say i think weve cut enough, we stopped now . Secondly as leader of this institution, have you felt a need to boost employee morale at a time when the president is constantly criticizing the fed i would love to be able to articulate a straightforward stopping role. It will literally be when we think weve done enough. Our eyes are open. Were watching the situation. If you look at things in the economy, i see the high value because we are really reaching this positive economy is reaching communities that havent been reached in a long time i think were watching carefully and there will come a time, a suspect, when we think weve done enough. Be inning data and evolving situation and thats whats going to guide our guide us on the path. Were very unified, feel like were doing best job we can, serving the american people. Its been reported that the cfpb is investigating a bank of america for opening unauthorized accounts im wondering if the fed is also investigating this and if youre concerned that these banks are too big to manage. I saw the headline like this morning, during the preparation and everything i will say about wells fargo, there were quite wide breakdowns in Risk Management, which resulted in mistreatment of consumers that we know was quite harmful to the consumers and to the image of the institution i have no idea whether thats what happened at bank of america. I really dont know, standing here today. Steve beckner for npr, fr freelance. The fed and your Central Banks have been sort of exploring the far reaches of maes possible for Monetary Policy. Even going so far as to make rates negative with mexed results. Not to mention trade policy are pursuing their own separate courses. Do you have consider limitations of Monetary Policy, should you be more explicit about what Monetary Policy can and cannot do in this environment we try to be clear about that. I think our job is to use our tools as best we can to achieve you know, to do the jobs that congress has assigned us, thats a real job. Advice about how to do their job, we keep that at a high level, i think at a high level, yes, i would say ive said before that its fiscal policy thats more powerful and has much more to do with fiscal policy can do those things that will increase the longer run growth weight rate Labor Participation and the skills and aptitudes of workers all comes from the private sector but more from the things that can be done with fiscal policy we cant really affect the growth rate of the United States its not a function of Monetary Policy but other things. I try to be clear about that fiscal authorities will do what they deem appropriate. Mr. Trump has been a very vocal critic of you and your colleagues, recently calling you bone heads and just now has called you a terrible communicator how do you respond to these criticisms and any regrets to have this many press conferences . I dont i will say i continue to believe in the independence of the Federal Reserve has served the public well over time and i assure you that my colleagues and i will continue to conduct Monetary Policy without regard to politica considerations were going to use our best judgment based on facts, evidence and objective analysis pursuing our goals thats what i have to say on it. As you saw with bond yoelds up until the beginning of this month theres been demand for treasuries and that was partly to blame for liquidity crunch we saw this week. Does the fed have concerns over the impacts of a global glut for u. S. Debt . Is that a conversation you have with treasury secretary mnuchin about the proper way to address some of the challenges down the road with that type of heavy interest globally . Not really. How much to spend, how big the deficits are, how to finance it. And none that have really calls for advice from the fed. We take fiscal policy pretty much as exogenous to our work. That doesnt stop us from time to time from saying we think its important that the u. S. Fiscal picture return to a sustainable footing. Right now its not thats been the case for a long time we limit ourselves to highlevel statements like that. Is there any risk to the United States having much higher Interest Rates or any risk to the Global Economy i guess i would say it this way. Global Capital Markets are highly integrated and are being pulled down. The way i would characterize it are this low rate as broad are a symbol or sign, rather, of weak Global Growth just kind of a lack of policy space to move against or ideas about how to break out of that low equilibrium. Implications for us insures a world where economies and Financial Markets are tightly integrated that matters for the u. S. Economy. Thats going to pull down u. S. Rates and financial conditions can tighten because of that. I think we put all of that goes into our thinking about into our models we do understand how the International Sector interfaces with the u. S. Economy. We talk that into account. Thank you very much. Fed chairman jay powell after delivering his second Interest Rate cut from the year, saying its insurance townside risks, facing the economy he mentioned, Global Growth slowdown, like brexit, inflation not meeting target minor selloff welcome to closing bell. He did not say and left more optionality on the table the market, as sarah said. Equities sell off. They bottomed and roughly the middle of jay Powells Press Conference there but have recovered if we look at the s p intraday. There it is. We did see yields rise following the decision only the short end like the two year and three and five year are higher on the day. The rest of the curb remains lower. Slightening flattening but it hasnt, in fact, gone negative. One of the biggest surprises is the growing divide inside the Federal Reserve. As far as the projections, seven to ten Seven Members of the fed, and not everybody gets a vote here, want another cut ten of them hold steady or we raise Interest Rates by the end of the year. Little confusing as to the path of policy from here and what jay powell is going to be looking at got a lot of questions as to that sort of key of whats going to anchor the fed. He said theyll be data dependent and move more aggressively less than 100 now. Recovered. Joining us to break down the fed. Jeffries, double lines, former chief economist, professor Jeremy Siegel and Charles SchwabsElizabeth Ann sonders. Josh brown ceo, he will be with us to break down the Market Action final half hour of trade quite a group coming up ill stick to markets. Can he have the job when powell steps down to spend more time with his calculations. I think the Market Reaction, you know, any trader down here will tell you the first move always gets faded. Probably happens even more so. I do think there were some people that were set up for either a more dovish statement or 50 basis points when that didnt come through, there was a quick knee jerk sell thats not human behavior. Thats computers once that gets washed out and people realize, you know what . Probably getting another cut after this at some point no one has turned hawkish. So financials and utilities makes perfect sense to me. Youve seen more than half of the selloff in the dow disappear. Why does that make sense . Theyre both up. These sectors price thepgs in before they happen not afterward. Its not as though theyre pricing in that much more stimul stimulu stimulus. What were they going to say to mullify the markets they didnt do that. Third rate cut and there wasnt that either. The markets dropped. Not much but dropped go into the press conference were down started turning around 15, 20 minutes in the press conference. Powell made a series of statements, basically saying it would be very, very flexible more extensive may be appropriate. Theres one statement. Reiterated, said this before not on a preset course yield curve is flatter, rates are up banks are moving up. Utility ds move down a little bit. Although they are higher banks higher here. I want to remind everyone how much drama there was the last time july 31st, infamous mid cycle correction comment s p, sarah and with wilf, moved in a 50point range at that time lot less drama today back to you. Bob, thank you for that more on todays fed decision, lets bring in david zervos, Paul Mccauley and chief economist at Grant Thornton and lori rbc Capital Markets. Good afternoon to you all. Paul, whats why your takeaway from the decision . It was very animated. I know. I think chair powell did a really good job. It was a difficult thing for him to do. The fact that the market hasnt moved much at all today, a sign of communication, the fed had to ease today because the market was prepped for it in every regard and i think he explained it very well but the fundamental issue at the fed right now is theyre making policy without a robust reaction function that is the real difficult thing. And theyre doing the Strategic Review its wonderful to see him highlighting it, coming out at the end of the year try to inform what their algorethm is from the standpoint of incoming data hes making policy without a reaction function. I thought he did a very good job and said it is a midcourse correction, except if it isnt so he left a great deal of optionality on the table thats a good thing. Even when asked when are you going to be done he said well know when were done. Absolutely. He maximizing optionality, which was perfect. Do you know who did not think he did a good job . President trump, out tweeting pretty early into the news conference, saying jay powell and Federal Reserve fail again no guts, no sense, no vision, a terrible communicator. Fed chairman was asked about this, of course, yet again he had a very scripted answer, was expecting it. Im not going to read it. I dont think donald trump is unhappy with the 25 basis points the bad communicator. Well, of course. Obviously wants bigger, louder, flashier i think he wants more showmanship. I swear, i believe this. I think he likes having larry kudlow, because he knows how to talk on tv he likes giuliani as his tv lawyer he wants the fed to come out and say everything is great and were going to do even more to make it even greater. He wants swagger . He wants the Rate Decision to be dropped like the ball on new queers eve years eve in times square i get it hes a promoter. Im not saying that he wants people the fed historically has not been there to do were breaking all kinds of norms these days. Communicated probably his best performance yet. Look at dow what else do you want . Look at the market we want to bring in Steve Liesman as to a money question, steve, about the repo market what did you make of that and Everything Else that powell said i think theres news there, the second half of my question where he said we may have to begin organic balance growth sheet sooner than we thought and i did see, by the way, yields come down when that happened briefly and then they seemed to resume their rise again i have sort of lost a lit