Making money. Charles another good day for the market. Investors getting more evidence of a rate cut on the way. President trump pointing out the world is cutting rates, the fed should as well, because of faulty thinking process there at the Federal Reserve. He is worried saying we pay much higher Interest Rates in countries no match for us economically. Another words our Interest Rates are much higher than other countries when they should be lower. This comes from comment from three fed officials that boosted expectations after rid cut. Edward lawrence at the white house. Reporter you are talking about James Bullard, john williams, new york fed president and Richard Clarida, and Jerome Powell in a speech today. He pushed Federal Reserve to have a rate cut during their next meeting. I want to zero in on the third tweet that he made. The president said in that tweet, quote, this is our chance to build unparalleled wealth and success for u. S. Growth which would greatly reduce the percentage of debt. Dont blow it. President pointing out inflation is low, running under the Federal Reserve target. Vice chairman of the Federal ReserveRichard Clarida says theyre operating where the economy is going. He says the fundamentals are strong, job growth, low inflation, customer spending n an exclusive interview with our liz claman, he signals a rate cut. Listen to this. Reality in the past the fed and other central probation found it appropriate to take out insurance policies in good times. That is part of the tool kit. If you need to use it, dont need to wait until things are so bad to have a dramatic series of rate cut. Reporter dont wait until things get bad before using the tool. You see possibly a signal. The Federal Reserve wants to head off any type of economic slowdown even before one starts to gain momentum. Collar rid today says the economy is in a good place. Federal reserve chairman Jerome Powell said the fed will act as appropriate to sustain the expansion. That the fed will use all of its tools to insure the expansion continues. St. Louis Federal Reserve president James Bullard within the last 24 hours actually said that he believes that the rate cut should have happened the last time. There on the screen is john williams, new york fed president. Who also alluded to a rate cut but the st. Louis Federal Reserve president believes it should have happened last time. He believes one should happen this time. In his mind of the trade uncertainties a Global Economic slowdown would cause to us have this rate cut. Back to you. Charles thank you very much. Joining me neil richardson, edward jones, mattie doppler, National Taxpayers union and vision four funds vp heather zumarriaga. Let me start with you. Market got really excited, new york fed president williams talked about a research study. He didnt talk about tariffs or anything else. What he pointed out what is bothering the fed, if inflation gets stuck too low, below the 2 goal. People may expect it to stay that way, creating a feedback loop pushing inflation down over the longer term. I think theyre worried about a deflationary death spiral. Exactly. Boil down to the words, we dont want to turn out to be japan which is in a very slow growth momentum. What the fed is trying to engineer with this rate cut to increase Economic Activity, by lowering the costs of borrowing for companies and consumers in order to get activity to burst through again, give the boost to Economic Activity that will eventually lead to innation. Charles mattie, youre my orthodox stickler. Do you like this new fed thinking that i have surmised here . I dont think that youre wrong, charles but i think this will be the topic of conversation for the next few weeks leading up to the next meeting. Last week the fed chatter would whether it would be 25 basis point cut or a 50 basis point cut. Now this week it will be what is the rationale. That is the different arguments from bullard. Trade tensions and global slowdown is the reason fed should act to cutrate. The question of inflation is a good one and we dont know if an inrate cut will spur the growth that has been latent for several month, through several cuts since we expected to be able to turn into inflation. Again you hear a lot from powell talking about how their action is going to be considered to extend the current economic circumstances. That is a different calculus than saying we need to act to get ahead of the recession or the fact we see Economic Data weakening. We need to hear from fed officials whether or not they see the economy is strong, whether or not they take out an insurance policy or they think some of the fundamentals are starting to weaken. Charles speaking of 50 basis points, heather, going into yesterdays session, wall street had a 34 chance after 50 basis point cut. A week ago it was 19 . When the market closed yesterday it was 70 . Im not sure where we are today. Wall street really loves the idea of a 50 basis point cut. Will it be disappointed if there is anything less . That is the problem. It may be closer to 100 of wall street expecting some sort of fed rate cut. I think that if the markets are expecting that, they dont get it, then the markets will sell off. I think if you want to please everyone which isnt the feds job, you cut by a quarter basis point. You take last decembers quarter basispoint hike off the table. You please the president , you please critics that say the fed is tightening too much and everybody is happening. Half of 1 cut, the economy is doing pretty well right now. I just dont see the Economic Data that warrants that now. Charles maybe everyone wont be happy in the sense that you do have some purists out there, say only 2 1 2 now, rates. Save your bullets. Williams addressed that too, what he said was nuts. When we dont have many bullets we should use them all. Using 25 at a time wont do the trick. If we only have 10 1 2 basis points, 250 basis points use as much as possible to arrest the problem. That is the current thinking. That is what Williams Research has been doing. One cut wont do enough. Fed wants an inch. Market wants a mile. Charles what happened . We expected rate hikes. A lot changed with the dovish pivot. The fed boosted large cap of 18 in first half. Here is what is key. Not where the economy is we all agree is sound. It is where the economy is going. Charles do you personally feel this would be justified if they cut rates. Not based on where the economy is. I dont think a rate cut will lead to a trade deal. I dont think a rate cut will stem the tied of slowing global growth. Charles with respect to the future. What it will do extend the expansion, give stocks a reason to rally to support the bull market. Lets remember it is not the feds job to increase equity prices, right . Charles its a not. Real quick, less than a minute. You guys are brilliant. Real quick the Michigan Sentiment report just out today, went over expectations for consumers because the fed does focus on the consumer, what the consumer is expecting. Right now the consumer is expecting stagflation. If that is the case, mattie, is that argument for rate cuts . I mean 70 of our economy is because of Consumer Spending so of course it is an important data point but is it the only data point the fed its looking at . Of course not. Look at philly fed manufacturing report. Manufacturing getting a bump after seeing a static hold for the remainder of the year. We dont know exactly what the economic picture is right now. Nela is right we need to look where the economy is going. Where the economy is going might be very different where the stock market is going. The fed needs to be sensitive to that. Charles stand by for a moment. We have big news. Shares of boeing are up huge after the airline builder reportedly will take 4. 9 billion charge. Boeing saying the calculations are based on an assumption the plane would be up in the air sometime during the fourth quarter. Kristina partsinevelos is live in the newsroom with more details. Kristina. Charles that is an after thetax cost. That will be one thing in the second quarter. The reason were seeing share price rise. Seems like boeing is relatively confident. They must know something the fact these planes, these 737 max jets will be up in the air by the fourth quarter. Boeing alluded to the fact there would be no production costs. That was a big deal. There might be a little bit after cost when it comes to production slowdown to the tune of 1. 7 billion. Could they be too optimistic given regulators have to approve the changes to their software. The 5 billion will be given to various airlines the fact they had to reschedule everything. That is the latest number, 371 planes have been grounded around the globe. So boeing is trying to, mend its relationships with a lot of these airlines. That fee, i will end it there, that fee, that 5 billion, does not include any litigation. There is lawsuits on boeing for negligence, as well as 50 million going to family members of victims that perished in the two crashes. Charles thank you very much, kristina. I want to come back to our panel. Heather, i want to get your thoughts on that and boeing do you think it is over. First for the fed you were going to try to Say Something there. Sure. I think the biggest danger, if we do have a true recession the fed rightfully as you point out runs bullets cannot cut rates enough to get us out of recession. Janet yellen said the fed needs to cut rates 5 to us out of recession. Boeing 737 is the bestselling plane but in terms of what is the impact on earnings overall, i think 4. 9 billion which was pretax was widely expected after two devastating plane crashes. I think earnings overall will be a positive, very positive situation boeing aside. Charles also we got 42 planes being produced per month now. Sometime next month, next year, that is going to go to 57. Ne are. A, broken down stocks like boeing, for instance, underlying investment proposition is still absolutely phenomenal. You know, people trying to gauge this market where leadership comes from, you mentioned large cap names. Could it still be the names like boeings of the world, caterpillar having a good session today . Were looking at industrials like caterpillar, like boeing, they are very tied to economic growth. A lot of them report next week. What were seeing in boeings stock price is up, because the compensation costs were largely expected. What investors keyed in on, is that q4 serviceable date, resumption of services of this fleet. Now there is still a lot to go on. With boeing there is exhaustive regulatory review that is warranted, needed were cautious about the date t could be delayed. There are a lot of leaders in the market right now, you have to be cale not putting all of your chips in one stock or one sector. Were still at latestages of a bull market right now. Charles mattie, your thoughts now, latestages of the bull market. Weve been hearing cycle with the rally, expected recovery, im not sure, we might throw the old Business Cycle things away and form new once. Market is looking freight. The economy is feeling great here. What are you concerned about right now . Im really concerned about what happens on the trade front, charles. You and i have gone back and forth about this a million times what the administration will do to settle some of these trade worries. That continues to be the number one focus of firms when the Federal Reserves asks what is your number one concern going forward. That is exaskerexacerbated that firms have enough employees that will be under added pressure if we have a trade war that creates additional hostilities for businesses that want ininvest and create jobs here in the United States. We need productivity on the trade front and usmca trade deal still languishing in congress. I would like to see motivation from democrats on that to see that get done before the end of the year. Charles heather . I think we will get a trade deal and usmca done by end of the year. Not quite sure about the china situation. Fed chair powell pointing to trade tensions in china as one thing theyre monitoring. That is outside of the scope of fed policy we have to keep an eye on what the trade war in china does, it does have an impact on the markets. Charles has impact on psyche, the Economic Impact the fed told us over and over again has been diminimus. The psyche, that is again where the fed has to, it struggles, right . It has to figure out the psyche of the consumer, the psyche of businesses. Business investment. You know, listen, ip investment is through the roof here. What do you make of this economy . How strong is it has been despite those persistent worries . The longer the fed goes outside of the book, which is charles dual mandate. Employment, natural rate of employment, more complicated the world looks the more complicated their job. The trade issue is a big one of the it is about Market Sentiment and the supply chain. More importantly about the future of tech. That is the story. That is why it is so complicated that eids back to the u. S. Stock markets because tech is the leader. Charles isnt it interesting that Semiconductor Stocks have been on fire . I think chips are up 37, 40 this year and they were the ones that were supposed to be hardest hit by this war. That is the sector to watch. Can they still perform with these trade tensions bubbling around . If wees can late will they still perform . Do they see the trade impact. That is the question. Charles nela, head they are, i could talk to your ladies all week. Thank you for your brilliant thoughts. Thank you, charles. Charles gannett is soaring after the wall street journal is saying it neared a major deal. They will combine with gate house media. Shares of gate houses Parent Company on the rise. British tanker seized by iran, this coming of course days after the uk forces seized an iranian tanker near the gibraltar. Well have a lot more on this later on in the show. It has been 50 years since the apollo 11 moon landing. Is america ready to win the next space race . Were in it. First Elizabeth Warren targeting wall street again, vilifying private equity firms. She says theyre vampires an monsters. A month after Bernie Sanders slams walmart for giving workers quote, starvation wages his own campaign is accused of paying poverty wages. Well break down the disconnect next. What do you look for when you trade . I want free access to research. Yep, td ameritrades got that. Free access to every platform. Yeah, that too. I dont want any trade minimums. Yeah, i totally agree, they dont have any of those. I want to know what im paying upfront. Yes, absolutely. Do you just say yes to everything . Hm. Well i say no to kale. Mm. Yeah, they say if you blanch it its better, but that seems like a lot of work. No hidden fees. No platform fees. No trade minimums. And yes, its all at one low price. Td ameritrade. We like drip coffee, layovers and waiting on hold. What we dont like is relying on fancy technology for help. Snail mail we were invited to a y2k party. Uh, didnt that happen, like, 20 years ago . Oh, look, karolyn, weve got a mathematician on our hands check it out now you can schedule a callback or reschedule an appointment, even on nights and weekends. Todays xfinity service. Simple. Easy. Awesome. Id rather not. Charles we have got more breaking news on seized British Oil Tanker. The price of oil now that the Tanker Company is confirming that their ship was seized in the strait of hormuz in international waters. 23 people on board. No reports of injuries. The company is yet to get in contact with them. Uk fears iran is responsible. This comes after days the uk forces seized an iranian tanker near gibraltar. Democratic president ial hopeful Elizabeth Warren is proposing a bill that would rein in private equity, calling them vampires that left a trail of failure of oncethriving businesses the massachusetts senator, just now tweeting, lets be real. Private equity is like vampires, draining companies and making them rich. My new plan reins in these monsters to save our economy. Private equity parachutes in when companies are struggling. They find ways of cutting costs which is sometimes a euphemism for cutting jobs, propping them up, trying to bring them back to life. Sometimes the companies dont come back to life. Toys r us goes out of business. It happens a lot lately. A lot of people are saying maybe only people benefiting from this relationship are private equity . Thats one model of private equity, charles, but there are many, many examples of companies who have been bought by private equity firms. Who then use their extensive connections and networks to basically leverage Smaller Companies into bigger companies. I could cite you a gazillion companies that base consider were taken on by private equity operators and made, and allowed to access, for example, foreign markets. A lot of small and Midsized Companies dont have the reach and the tools that are basically available to them from a giant company like carlisle or others. I think Elizabeth Warren has cited two interesting examples where she thinks that the process has unspooled unfairly, one being the denver post, another midsized Department Store chain. Well both those industries are in trouble. Basically you dont really find private Equity Companies going in and looking at