Prices and the economy depends on the course of the virus the committee will maintain its purchases or increase to smooth market funding it repeats for the second time that it seeks inflation moderately above 2 . This is a carbon copy of the last statement i counted seven words changed and none of them really substantial or meant to convey any particular meaning i think that reflects the big changes. Jim was saying last time exceeding the 2 inflation goal and theity si itdesire not to mo many waves while the country counts votes in this president ial election. The other dissenter did not attend the meeting due to the birth of his second child. Congratulations to Neal Kashkari absolutely. Well spend half an hour dissecting those seven words what do you think of jims point, which is the absence of stimulus may have put the fed even more under a spotlight to do even more absolutely. I think thats true. I think the fed will feel pressure to do more, but it creates an interesting quandary, which is that you know the old thing leave to cesar that which belongs to cesar and leave that to god which belongs to god. The famous line talked about is we can lend, we cant do grants. So the question becomes if the fed indeed does do more because the fiscal side isnt doing more, request isnt it doing it . Why isnt that stuff that really should be done by the fiscal side and does it do any good for the fed to do more jim was talking about this issue of quantitative easing i personally have my questions and ive talked about this with a lot of other fed watchers, what good additional qe would do in this environment when the ten year cant seem to get its act above 1 , no matter how much the government seems to borrow theres no whiff of inflation out there. David kelly has a lot of interesting thoughts on this, which is why would it go out and do more qe, towards what and what effect would it have other than some kind of psychological sal salve to the market. Why dont you expound there what more would the fed do if it did more and what effect would it have other than pof tnsly raising asset prices really my point here is that its a back stop its something that the markets just are to understand that the fed is going to keep a control of Interest Rates. Its not that they necessarily need to do anything more i agree with all the points that are being made tenyear treasury yields are having a hard time rising, inflation having a hard time rising doing more qe doesnt necessarily need to be there but what does need to be there is when yields were starting to go up and we thought we were going to have a potentially bigger fiscal package, i dont think the markets are pryce ficed fora tenyear treasury yield to get up to about 1. 2 and people start to get worried about a taper tantrum. Im not saying any of those things will occur but i am saying we need to think of the fed as a backstop in trying to control longterm interest rat rates. David kelly, what about steves point about buying Corporate Credit if the fed goes in and does that more gae aggressively in. They could but i dont think thats the point of qe anyway. Qe is not really working in terms of low rate stimulating activity directly. What it does do is enable fiscal spending this year even without fiscal stimulus, were going to run a budget deficit of about 1. 8 trillion you add on another trillion of stimulus, youre 2. 8 trillion could the government borrow that on the open market without the feds help with without longterm Interest Rates going up probably not the fed is doing at least a trillion in purchases. It would enable the federal government to feed stimulus into the economy without seeing the rates go up. Its enabling fiscal stimulus. David please, steve, go ahead just real quickly, im sorry to interrupt i guess my point is that the fed, david, is entitled to his thoughts about whether or not the fed is actually motivated by helping the Government Finance his deficit. That let me say the fed has a more powerful tool right now to impact the economy and thats these Corporate Bond es bond purchases if you drive down rates, its to affect the real economy. Its much more effective than anything in covering the fed in 30 years if it wants to drive down rates in the real economy, it could go out and buy more bonds in the market until its authority expires. That is a fair point. If can you keep the high yields down and help companies that might otherwise be under a lot of stress, that is good. But theyll still obviously have to be a fair amount of tidying up with those companies afterwards it could do some good there. Essentially i agree with chair powell that the most important thing is to have some fiscal support of the economy through the pandemic and theyre doing everything they can to enable that we have several different words in the statements last time im going to throw some franks hot sauce into the conversation now. Lets take a look at a biden win and a trump win. Mona, under either of those scenarios, will Jerome Powell be renominated to head the fed when his term expires yeah, thats a great question i think clearly from a President Donald Trump perspective, we havent heard as much complaining about Jerome Powell. So i think clearly the policy is secure if we do get a reelection of President Donald Trump. The question becomes under a Biden Victory what do we see again, i think biden will have his, you know, Due Diligence to do but thus far Jerome Powell has proven to be a pretty steady player, politically very unbiased and really seeing the economy through this crisis and perhaps is the right leader to take us through the next mona says powell stays under either jim, what do you say i agree with mona i think he stays under either. Why would you want to create more risk or uncertainty in the markets at this point. After all, the fed has just laid out a new framework for keeping Interest Rates really low. I dont know that, you know, under a biden presidency he would want to really change that david yeah, i think that joe biden would definitely want to keep Jerome Powell. Partly because hes appointed by a republican, he is from a republican heritage. Thats actually going to be very important for President Biden to reach across the aisle and try to come across as a centrist donald trump im not so sure i think theres sort of a personality clash there. It would be interesting to see if things got tough next year and donald trump was reelected, whether he would actually want to keep Jerome Powell, even though that is pretty much helping out the straight a year and a half, two years ago he was down on powell. I guess that has changed a bit since then steve, why dont you respond to that franks hot sauce its a great question, tyler. Definitely would definitely reappoint powell, especially if he has a republican senator. That would remove run controversial flash point with the Republican Senate he doesnt need the second thing i would add is come talk to me if this nomination takes place during a time when Interest Rates are rising right now Everybody Loves the fed, Everybody Loves powell. I have the unfortunate job of listening to of single word and every sekle Committee Meeting in congress that the charm has to sit for. If rates were rising, it would be a very different story. Come talk to me then and ask me that question. President donald trump might, if he is reelected, want to go further down the road if hes going and disrupting the institutions as we know them now and he could go further and get rid of powell if he wants that fight and is willing to risk upsetting markets from that change and appoint somebody more controversial. Interesting interesting. So i see a probability that either one would hold on to powell, but david and steve are a little less convinced that mr. Trump would hold on to powell economy recovering, mona, but not back to prepandemic levels. If you were to grade the health of the economy on a scale of one to ten with ten being excellent and one being poor, where would you rank this economy right now . You know, i think the economy is on a path to recovery, but right now were still in early stages were probably at a 4 or 5 at the best keep in mind Unemployment Rate if ever after tomorrows jobs report is probably likely 7. 6 or so. Gdp growth was phenomenal this quarter but looking to moderate over time. We certainly have to get through this next period of the virus and an economy that may be hunkered down a bit and we dont have stimulus on the table and the president ial election is still ongoing. What i do see is 2021 could look much better. Even using the feds own estimates, next year ears gdp growth could look plus 4 , Earnings Growth could be closer to plus 23 according to estimates. Combine that with low rates and the potential for stimulus, thats not a bad back drop for risk assets. Were four to five heading towards hopefully six, seven or eight next year. As we look at the ten had of year inching up just a little bit, do you think rates are on the rise here or no . I think theyre lower and would than they would have been under a blue wave. A big fiscal package that nancy pelosi was talking about is less likely to get through under a divided government so, yes, you should get lower rates. I think thats likely. And as for grading the economy, id probably give it a c the pandemic economy, these are either mid terms or final grade. Hopefully by next fall we could out of this and i think the economy will be doing quite well at that point. Very good thank you, everybody, for joining us today mona, jim, karen, david, kelly and steve liesman, we appreciate it we continue to look for a reaction to a fed statement we just got, a press conference looms in a fuels time stocks rally looks like theyre hanging on to the gains here lets go to bob pisani for more. The fed did not move the stock market but you dont need the fed. We have a Freight Train going on we are 60 points away from an historic high, september 2nd, remember that . 3580 we just keep moving up the last three days something new is happening today. Yesterday was all about Growth Stocks we were going to have a biden presidency and a gop in control of the senate and that of course meant less stimulus but good news for the Growth Stocks, less taxation, less regulation, health care and tech was up. Today theyre up but other things are up as well. Cyclical stuff i want to show you stuff like clean energy, for example, which are bouncing back because theres a little bit of murkiness in the senate races. We may have the prospect of a twosenate race runoff in georgia. Thats muddying the gop control. Thats causing confusion now people are covering their bets you see Clean Energy Stocks that were down yesterday are up today. And groups that might benefit from extra stimulus like caterpillar, closed tuesday 168 dropped down big yesterday, 155 and its back up again its a roller coaster. The same with the infrastructure stocks they were up earlier in the week and then down big. Its just a few days, you see these things going all over the place and people can figure out what kind of stimulus or infrastructure were getting i call this the heads you win, tails you win stock market no matter what people are still betting long term things are going to be on the up side thank you very much, bob pisani and Rick Santelli is looking at the impact on the bond market today. Rick i had my Sherlock Holmes magnifying glass better look at twoday charts, the 2s, 10s, 30s or dollar index. Truly all the pieces set in motion about 28 to 30 hours ago are still enforced 93, 94 on the high intra day maybe we moved up a microbasis point but not really that much in terms of whats motivating the arket, i agree with bob an the whole panel, the fed really didnt say much today. What would they have said if the dow was down 800 today i wasnt asked this question but ill tell you anyway, maybe we should wait until we get postcovid i think the fed will have some real issues. And should they do more things when i hear the feds more effective, you know what i hear . I hear an end around the way things normally are done kelly, back to you all right, rick, thank you, sir. Rick santelli. Coming up, were 15 minutes away from fed chair powells News Conference even when the fed doesnt move markets that much, sometimes the press conference does. First, well get you updated on the states that are still counting their votes the latest daietls on the election next on power lunch. Why dont you call Td Ameritrade for a strategy gut check . Whats that . You run it by an expert, you talk about the risk and potential profit and loss. Couldve used that before i hired my interior decorator. Voila maybe a couple throw pillows would help. Get a strategy gut check from our trade desk. Welcome back markets do continue to rally the dow up 575 points, nasdaq up nearly 300, thats a 2. 5 gain and it is the best performer we are watching two major stories this hour. First the Coronavirus Crisis daily numbers topping 100,000 for the first time and on the election front, the electoral vote count now stands at 253 for biden and 214 for trump. As votes continue to trickle in from various states, we still have six uncalled races at this hour for the latest on the election, lets go to eamon javers in d. C. Lets start with a little whip asround the country. Nevada has been reporting new vote during the course of the day. So far if we can bring up that nevada screen, i can tell you where we are as of right now there we go. 49. 4 for biden, 48. 5 for trump. Thats 89 of the vote in. So were getting there in terms of getting a result in nevada but were not there yet. Moving on to arizona, again, a lot of focus on arizona because its got 11 electoral votes. Biden 50. 5 , well watch that as georgia where they do continue to count votes, we had a press conference from georgia, 4 pnts 5 for trump, 4 49. 2 for biden. 98 of the vote is in in the state of georgia meanwhile the president had tweeted out earlier today stop the count, revising that with statement later in the day saying if you count the legal votes, i easily win the election if you count the illegal and late vote, they can steal the election from us. The president throwing out accusations of fraud there are no credible allegations of fraud at this hour anywhere in the country that we know of right now, kelly. So well watch for that as well. The Biden Campaign says theyre confident theyre going to win this thing they think it could be all wrapped up, done and dusted as soon as today. Back over to you wow eamon javers with the latest and frank is in philadelphia for us hi, frank. About 71 of pennsylvanias mailin ballots have been counselled rig counted. The ballot counting was temporarily halted due to litigation from the Trump Campaign the campaign wanted more access to the ballot counting and opening process. Right now the state is appealing that ruling and the state is back to counting President Donald Trump has less than a 2 point lead and in philadelphia there are about 104,000 mailin ballots and they are largely expected to be for biden. The math Pretty Simple when you look at it that way. If all those ballots are counted, this race becomes much tighter. And theres the issue of the outstanding 500,000 mailin ballots that can be counted as long as they arrive by friday at 5 p. M. The Trump Campaign has joined to file litigation that aims to block those being counted as well and there are provisional ballots who went to the wrong polling place and were allowed to file a ballot anyway. Those may or may not be counted. I gather mr. Biden is winning the mailin ballots by about 77 to 22 if he tcontinues at that ratio, what happens when the rest of the ballots are counted . In the philadelphia area were assuming most of those mailin ballots are for joe biden. But around the state, theres that general consensus that the maeshlgt of those mailin ballots will be for joe biden. That makes this race much tighter. And it alsoity pends on which way the courts go in ruling whether ballots that were postmarked on election day but arrived, say, on friday are able to be counted or at excluded from being counted thats really at the heart of that matter. Kelly. We are Just Moments Away from fed chair powells News Conference the dow is now up 589 points it headed back toward session highs and materials, tech and financials are leading the way were going to be back in a moment with the jay powell News Conference stay with us ourselves. Lets get checked for those around us. Lets get checked for a full range of conditions. Introducing letsgetchecked a Health Testing you do at home. Lets get round the clock support from a team of nurses. Lets get fast, accurate results. Know your health. Know yourself. Order now at letsgetchecked dot com and sweetie can coloryou just be. Gentle with the pens. Okey. Okey. I know. Gentle. Gentle new projects means new project managers. You need to hire. I need indeed. Indeed you do. The moment you sponsor a job on indeed you get a short list of quality candidates from our resume database so you can start hiring right away. Claim your seventy five dollar credit, when you post your first job at indeed. Com home. Lets take a look at where the market stands on this day. Theres a lot happening. Theres a fed meeting and of course an electoral count still going on in many areas mr. Powells