Today. We start out of with the fed staying put. Jerome powell signaling the rates will stay near zero through 2023 stocks getting an initial pop, but reverse course as the fed share took questions from the press. Steve, what was it, do you think, that spooked the markets . You know, its always hard to know maybe one of those sell the news things there was a bit of history in the statement where the fed for the first time put in the statement that its new goal is to seek inflation above 2 that was in the longterm policy strategy but it had not yet been in the statement. This is the first statement following that change. It was a bit like there was nothing behind it in the sense that, the question that i asked, i said, well, how come your forecasts dont show you hitting the goal, not even in the fouryear horizon here the fed chair didnt really have a good answer for that you would think if you said, you know, im going to move this tanker faster, you know, youd be pushing the throttle down the fed didnt do that at all. They just said our intention is to go faster but were not doing anything about it. There wasnt any actual policy substance behind the new policy. Steve, what jumped out at me was the language in the statement. I dont know if i want to use your medical fotaphor but the f it needs to be on track to see that inflation target as opposed to sustainably hit that inflation target theyre saying being above 2 , we just need to be on track for it, we dont need to actually hit it and sustainably maintain it i wouldnt say its hawkish overall id say the development is very very dovish, the fed now saying in its statement its aiming for a target above 2 and also in that same statement forecasting. 4 Interest Rates until 2023 you cant get much greener than that, i guess. The idea being that theres not any additional policy. The fed didnt come out with new qe or new plans to get there its just going to be a builtbie same old same old. Maybe that new policy didnt resonate much in the market in terms of hey, this is something new. Theyre not hitting the old policy and now theyre not going to hit the new one. Teve, unbelievable job. I love your twitter feed today ill ask you a question. There is inflation out there bk is going to talk about a commodity thats been exploding over the last year inflation is in places that we dont really talk about. Again, i ask you the question about a weakening u. S. Dollar, albeit a dollar that has bounced recently i understand its not the feds purview, but at what point do they become concerned that their actions or rhetoric is weakening the dollar to a point where it might become a problem you know, guy, i have a hard time sort of processing the dollar weakening or strengthening as a problem we probably disagree on that, but what i see as a very dynamic u. S. Economy that is geared to benefitting from a strong dollar and geared toward benefitting from a weak dollar i think the dollar has been very strong for a period of time. I think now is a period of time when its weaker i wouldnt say that the u. S. Is going to lose its exalted position or special position i dont see anybody challenging that at all, not the euro certainly. I think it is inflationary, but i think the fed perhaps wants that i think there are some companies that are going to benefit from the weaker dollar. Steve, thank you. What do the markets look like . What do valuations look like with rates near zero until 2023 . Through 2023, i should clarify tim . Well, steves looking for another color of green i think ultimately valuations are allowed to go higher when you can forecast zero Interest Rates out to 23. I think 24, because if you talk about some of the dissension, youre probably 2024 i think whats important about the fed policy that is starting to become clear and also very equity positive is that the Federal Reserve is essentially allowing for fiscal policy to follow through and theyre essentially financing it so financing this deficit is really what the fed is doing theyre monetizing the Balance Sheet of the government and that is something that may lead to more fiscal and certainly can give the context of being accepting of 12 trillion deficit, addones to the deficit in the current environment, which have people concerned but will pave the way for fiscal which will be equity bonanza we ta the nasdaq lost 175 basis points from the fed announcement and the power conference there were some assets that rallied, commodities and oil oil rallied 2. 5 anything that is attached to at ses pri asset priced inflation, i think we have a lot of that and i think it continues to push for the outperformance of industrials, transports and that part of the market that is going to benefit from asset priced inflation. Does that mean that the tech trade may have seen its best days, brian kelly . It looks that way it certainly looks that way today. Tech was actually quite weak going into this. When i read the fed,basically what happened today was there was no new information the fed already said, listen, were going to shoot for above 2 inflation the market priced that in. Today they didnt really give us anything else. And they said you really need fiscal stimulus. Fiscal stimulus has been a real problem. I mean, we dont have it yet i dont know if were going to get it it was not even a fortnight ago that i mentioned that was my biggest concern for the market i think the market has to digest that and we head lower to tims point, it was interesting to see commodities do well today. To me, thats pricing in the fed is going to do more in the future, but its not going to be economy supportive, its going to be commodity supportive steve grasso, what was your take my take, obviously ive been sort of weighing the options of getting longer on the Value Proposition and selling my growth i think to tims point, energy, financials, industrials, materia materials. Im just reading from chairman powells statement the central bank is satisfied with the current size and shape of its asset purchase program. That to me means that theyre not going to do any more right now. So hes trying to thread the needle hes got to say, were growing where the market is coming back, the economy is coming back, but its not too fast, so we have to keep rates where we are. But rates arent going any lower. I understand where could they go but the fact of the matter is people are getting tired of buying the same old 20 names in the tech complex and i think youre starting to see that real Value Proposition start to work. Guy, im curious underneath your question is the implication perhaps and tell me if im reading this incorrectly that purchasing power may be decreasing because of the weakening dollar at a time when the price of things like food and gasoline, things that everyday people buy, is increasing you read it 100 right, mel listen, weve been doing this a long time together you know the way i think i dont think i need to say it but for those watching for the first time, i am no fan of central bankers and no fan of our Federal Reserve. Whether they acknowledge it or not, their policy has led to a dollar thats been dwindling away over the last few months. Clearly its bounced recently. Thats problematic if you were to measure the inflation with the weakening dollar and asset prices and especially things that bk is going to talk about later, i would submit inflation is well north of 2 . As long as they are able to continue to move the goal post and not having any negative effect on the market, theyre in the drivers seat. I mentioned one thing, though, mel. When the market made an alltime high back in february of 3393, vix was trading 14ish now were obviously at alltime highs. The vix is almost twice that that, to me, is somewhat prob m problemproble problemat problematic. Something is going on here and i think its going to come home to roost sooner rather than later. Tim, looked like you were gearing up to take issue with guys thesis. Actually, i dont have a lot of issue i may be sharing in some of his passion here im not that worried about the dollar what i would say is the feds signal that everything is free today if you have assets i tweeted this out earlier and it elicited a lot of strong responses on both sides. If you dont have assets, if you cant take advantage of zero Interest Rates, this is not your party and this is financial oppression this is eroding the purchasing power of much of our country and i dont think its positive. Im with guy i share the passion. This has been great for people that have assets housing prices are going a lot higher the problem is a lot of people cant afford them and i think thats a major problem in our country. Lets talk more about the fed and the markets. Mike wilson joining us, chief equity strategist at Morgan Stanley. Now that the fed is formalized through 2023, what does your portfolio look like . I think we didnt really learn anything new today from the fed. Theyre just reminding us that theyre there and theyre going to continue to do their part of whats needed to get the recovery that we would all like. A couple things stuck out to me in todays meeting clearly they didnt give us any formal guidance on kiwi. I think there was some home that there might be some more guidance fort forthcoming there. Qe has not worked in terms of getting inflation. Theyve committed to keeping front end rates lower for as long as it takes i kind it peculiar that they guided unemployment to be 4 by 2023 implicit in that, basically theyre saying their policy is going to fail. Its bizarre i think its a little bit of gamesmanship thats what they do. As long as theres nothing in the headlines that forces them to start tightening, then they can keep playing this game to be supportive thats all good news the bigger message that i see coming from the fed is theyre not going to be tapping deals. Theyre shooting for the moon, inflation. That means the biggest sort of thing for the market is that back end rates could actually surprise us on the upside over the next 36 months. Were bullish on growth. We think inflation is coming that means that back end rates could move that will be the single biggest impact on your portfolio construction that you want to have Going Forward were set up for cyclicals and things that are going to do better in a higher back end market. Youre anticipating much higher volatility through the end of the year. What is the primary driver, in your view, of that volatility . Were already there weve moved volatility higher. The big driver is the election any time youre in an Election Year you just get higher volatility we also have this fiscal deal, which i agree is more important than what the fed is telling us today because the fed is already allin and we dont have an answer on that we still have to get through this second wave that we know is coming im pretty optimistic it wont be nearly as bad as the first wave ultimately its uncertainty. We have plenty of events thats going to keep volatility high between now and year end. I agree with you. When you look at the fed where they upgrade the Economic Cycle and lower the unemployment and keep rates the same, walk me through again though, because the cyclical play and the value play hinges on high e. R. Rer ras you mentioned the back end of the curve. Could you explain that for the viewers . Yeah. Its not overly complicated. The only reason why rates are where they are is because nobody wants to challenge the fed nobody thinks theres value in a tenyear treasury bond but theyre there because of financial oppression, as tim was saying theres a general belief that the fed wants to keep rates lower. I dont actually believe that. I think if we get a recovery thats driven bybetter growth and maybe some inflation, the fed will be thrilled with that i personally think they want back end rates to go up. If its not holding back the recovery, that would be very helpful in their ultimate goal of getting inflation you cant get velocity in the system with a yield curve thats flat as a pancake. I think folks have gotten lazy here they dont really see that all the other indicators are telling us that rates should be higher theres going to be a nonlinear move here at some point. Those events collectively is going to look a lot like 2016. We all know what happened in 2016 when the election occurred. Rates shot up. I think thats going to be the same setup this time mike, thank you bk, do you agree with that, 2016 yeah. I mean, i agree with what mike is saying in terms of i think the biggest risk to this market is that you do get tenyear and 30year rates shoot up rates include what growth is plus inflation so the inflation part of rates really started to get bigger today. So i think everybody says the fed hasnt been able to create inflation. They did all this qe it didnt happen they have no credibility when it comes to inflation when everybody thinks that way, bk wants to be on the other side i would argue that i do think were going to get significant inflation in certain areas of the economy. Lets get to boeing now that stock gaining more than 2 today, this despite a new house report blasting the company for serious failures surrounding the 737 max crashes. Phil, it was a damning report. Very damaging as well, but theres nothing new in this report i read it. You come through and you go, okay, that was reported, that was out there. Almost everything has previously been reported over the last 18 months none of it is good news. Basically they said, look, production pressures and faulty design within the software for the Flight Control system, incorrect assumptions on the part of boeing as well as on the faa. Basically they blasted boeing and the faa. The conclusion of the report, the fact that there were so many technical misjudgments, bureaucratic missteps and flawed design decisions paints a deeply disturbing picture of a federal regulatory structure in immediate need of robust reforms. That last part is aimed squarely at the faa administrator steve dixon said, look, weve learned from this. We will make corrective actions when it comes to certifying not only boeing aircraft but all aircraft in the future dont forget, dixon, who is a licensed pilot, will go through the new training for the 737 max and he will fly it himself before he signs off on the plane being approved for return to service. As for boeing and its response, the company says, as this report recognizes, we have made fundamental changes to our company and continue to look for ways to improve. Change is always hard and requires daily commitment, but we as a company are dedicated to doing the work take a look at shares of boeing. Keep in mind this has been costly for the company on a n number of fronts theyve already set aside several billion dollars in terms of the 737 max clearly they have felt an impact from this. As you asked earlier when you were at the start of the show, the fact that the stock moved higher today on this really bad news across the board, is it a bottom for boeing . That is really what i think people are going to be asking. Phil, thank you phil lebeau. Reading through the details of the report earlier this morning and the stock was trading lower, you thought that was going to be the trajectory of the stock for the remainder of the day, but here we are finishing up 2 . Bad news, good stock action its unbelievable that you continue to reside in amy head. What phil was just describing there is very Leonardo Dicaprio in the aviator. Leo happens to be a huge fast money fan that 158 level in boeing has been the support level going back to total request fast money a week and a half or so ago, one of the questions about airlines on a day you had really negative news but the stocks traded higher, we said the same thing look at delta since then delta very quietly is trading up to the last levels we saw in the beginning of june when i think the stock traded 38. Its a really good sign for boeing if youre trading the name. As a shareholder, tim, what do you think uhoh were having a problem with his audio, obviously hes not just lip syncing. Brian kelly, what do you make of the action in boeing i wont do my best impression of a mime when it comes to boeing, you can have it. I want nothing to do with it im old enough to remember when this 737 max was going to fly in q2 of 2019. This thing will never get off the ground the world has changed since the initial part of this has happened and i dont think the defense side is anything that i want to be involved in for me, its just an absolute no touch. I dont think theres anything here. Steve, quickly . Im going to say ill take what bk is selling here. I think boeing on a technical basis, guy covered bad news, good price action. I think this thing can probably ratchet up above 200 in short order. If you overlay all the airlines, all the charts look similar and theres a lot of news flow thats starting to be constructive one last thing, Spirit Airlines ceo said he looks for a recovery in the back half of 2021 thats bullish the airlines and boeing tim, why dont you finish your thoughts here i think the mime was saying, first of all, what would leo say . But i think if you look at airlines, youve had a 30 move in delta in 30 days. I think with boeing, the issues really are 737 max now looks like it will get certification in q4 the issue may in fact be the 787. When we talk about International Air travel and the lack of demand, i dont think the max is really the story anymore i think boeing will be Free Cash Flow positive in 2021. Coming up, gold miners getting a boost after todays fed announcement there is one stock in particular thats set to shine. What options traders think is next for this name at leaf blowers. You should be mad your neighbor always wants to hang out. And you should be mad your smart fridge is unnecessarily complicated. Make ice. Making ice. But youre not mad because you have e trade which isnt complicated. Their tools make trading quicker and simpler so you can take on the markets with confidence. Dont get mad get e trade and start Trading Commission free today. Shares of facebook under fire today as the social media giant deals with a boycott in a possible antitrust lawsuit. Julia boorstin has the details. The ftc has been working on its investigation into facebook since last june. The agency is gearing up to possibly file an antitrust lawsuit later this year after investigating concerns that facebooks been using its position to stifle competition and examining its acquisitions of potential competitors we got a no comment from facebook and the ftc on this report that still raises the question what could come next a majority of the fivemember commission would have to vote in favor of the suit. Then potential remedies could range from breaking off