Own emissions standards. All that and so much more on making money. Charles well, we begin with the fed the day after and while most observers agree that jay powell did a better job communicating, yet confusion reins as fed members are all oaf the map where rates should bo from here. President trump telling fox news what he thinks of the rate cut decision. I think we should do more because other countries have done more. If you look at germany, if you look at japan, look at some others theyre cutting much more. In fact theyre borrowing money, getting paid to borrow money. Were paying interest. Were the most prime in the world. We have this great economy. Were doing better than weve ever done. Our employment numbers are the best they have ever been, unemployment numbers also. We are doing freight. We should be cutting there is no inflation. Charles as the fed is pumping even more cash into our Financial System today. In fact over 200 billion in the last three days in the repo market. Will bring in university of maryland economist peter morici, First Trust Advisors chief economist brian wesbury. Essentially peter, President Trump saying we are the suckers of the world. How can we be this powerful, this mighty, all the weaker economies people are paying them to lend them money. What is wrong with us . What is right with us. It is very foolish to have negative Interest Rates for anything other than a very shoreterm policy. I think it is very bad for europes banks. Were engaged in a race to the bottom. The real problem with europes negative Interest Rates for us is the exchange rate. Instead of cutting our Interest Rates any further, we should begin intervening in Exchange Markets again. Try to drive down the value of the dollar basis selling dollars that would be another way putting liquidity into the system. No matter how you put liquidity in, you benefit somebody, penalize somebody. I would rather do it through the exchange market, driving down the euro and yuan as we can than simply pumping more reserves in. Charles brian, maybe not negative rates, bullard, who is a Voting Member of the fomc thought there should have been a 50 basis point cut today. I was hoping i would have something to disagree with peter on. I think negative Interest Rates are bad, bad idea. I think low every Interest Rates are a bad idea. Nobody is complaining about these level of Interest Rates. Plus on top of it the Federal Reserve has excess reserves in the system. The fed is not tight. Plus i mean, im going to argue with the president here a little bit, go back to the 1980s and 1990s, our economy was growing 4 a year, not three, four and we had much higher Interest Rates back then than we have today. So im not worried about higher Interest Rates. What i will say intervening in the exchange market, it may work short term but in the long run you cant keep intervening. Vanely you run out of money to intervene with. Wait a minute. You only hold out of money if youre trying to support the currency. You foreign currencieses to do that. Lowering Interest Rates requires you to print money. Instead of printing money for yuan and euro. In all of these schemes the real president president says there is no inflation. We have had low oil prices that kind of deceived us. Over the last three months the core rate has been up at very robust pace. I think our honeymoon with inflation has ended. Charles and of course it remains to be seen. Brian that is something the fed has talked about. We had u. S. Steel complaining about steel prices here. We know lumber prices have been in a spiral and a blip here and there, as economists you would say wait a little longer before saying lack of inflation we can check that box because mario draghi complained about it. We do know the risk of not addressing that issue, letting it become not disinflation but deflation, brian. I agree. Inflation is picking up. Look at core rates, take out food energy, Producer Prices of Consumer Prices theyre both heading higher. Not super high. We dont have hyperinflation. I dont think we are getting to 4 or anything like that. Charles i have one minute left. I want to get two things from you. Should we be afraid the new york fed had to intervene that the Financial System ran out of cash and what is the next move by the Federal Reserve. Brian you first . No, we do not need to worry about this. I believe the whole reason Financial System, first of all, im not arguing with you, saying they ran out of cash isnt true. We have a new regulation out there that is put on the bank for International Settlements and fed agreed that banks have to have one months worth of liquid assets on hand. And by the way they get that number by stress testing these banks. So they make a crisis worse than 2018 and then say that is how much cash you have to have on hand. What that does is, it locks the hands of banks. Charles right. When new bond issuance come out, when new mortgages come out, when corporations have to pay their taxes all of those things reduce the cash. Charles much ado about nothing real quick, brian . Getting anymore rate cuts . Maybe. I dont think so but im going to put the odds at about 60 no, 40 yes. Charles peter are we getting rate cuts this year . I agree with brian. This is not crisis in liquidity market. This is regulatory change which means basically the fed has to provide roles it used to provide through banks directly. My feeling if we get one more rate cut, thats it. I prefer not to see anymore. I think we have gone as far as we need to go. Negative rates, ultralow rates. Charles when peter and brian agree you know this is right. Were in the right place, right . Charles gentlemen thank you very much. Thank you, charles. Charles that kind of put a bid in the market here. In fact were about less half a percent away from alltime highs with the dow and s p. Philadelphia report of fed manufacturing. Came in way better than expected. It was key two items on the bottom. Number of employees in the work week soared from the last month. To break it all down, why the market is reacting this way to all of this news, david dietze, and money nap strategist keith fitzgerald. Keith, let me start with you. Under pressure this morning, nothing dramatically but grappling with what jay powell did say, did not say. We saw the manufacturing number come in really nicely particularly the employment part of it. We saw the fed intervene in the repo market. Seems like wall street was happy they worked it out. Charles, real growth produces real profits. The market is looking past the fact that powell provided nonanswer answers and concentrate what they do best is make money. Charles david, manufacturing, everyone keeps talking about that being sort of the thing, even the federal lewds to it. The biggest hit, trade, its a weak area. Business investment, those kind of things but we had a good manufacturing report today. Industrial production was up pretty good. Capacity utilization is up. Business equipment from that side was soaring. I wont say much ado about nothing but the demise hasnt occurred yet . I think thats right. This really bodes well. The problem really in my view has not been the u. S. Economy. Yeah there has been some weakness in manufacturing. That has been addressed nicely with some of these metrics. There is some weakness in real estate. It responded great to a reduction of Interest Rates in july. Refinancing pick up with real estate activity. The real problem is twofold. One, what will happen with the trade talks. How will that hurt or impair confidence . We know there are issues in europe. Theyre keeping Interest Rates down. That money is coming over here. What is that doing. It is doing two things. Raising value of the dollar. That is effect of a tightening. That was enough it warrant what powell did. Charles right. The second thing it inverts that yield curve. As they go into the 10year, theyre pinning that short term up because of the high federal fund rates, i think Federal Reserve charles lost me a little bit on that one but i do want to bring keith back. Of course david brought up the trade situation. Two hours ago the South China Morning Post put out an article, Donald Trumps advisor in china, Michael Pillsbury, president is ready to escalate the trade war if deal not agreed to as much as 50 to 100 on tariffs. The dow was up 100 point before the headline hit. We see how sensitive the market is to these headlines. Keith . This is important. A lot of the fact, look who said it, what did they actually say. That is a mouthpiece for the chinese government. Theyre positioning their people for a response to what they anticipate the president is going to do. If he actually doesnt do that, theyre in a pickle. That means their strategic deception didnt work. That is how they tend to think. We want results. They want deception. We want a conclusion to this. They dont. I think ultimately time to play nicenice. We will see substantial discussions in next couple weeks that will be good, put a bid under market. Someone will throw a Monkey Wrench well be back to square one. Charles this anxiety were seeing. This is common. No matter what the backdrop is. Whenever you get to new alltime highs the market waffles, sometimes when it doesnt break out it pulls back. What catapults the market to new alltime highs . One is continued low Interest Rates. Interest rates are still below what the yield is on the s p 500. That is a great tailwind. Were talking about getting key, stronger metrics on the economy, that will ultimately feed into earnings. Higher earnings feed into low Interest Rates. Recipe for solid market. Charles nice combination. David, keith, well talk to you real soon. Facebook Ceo Mark Zuckerberg on capitol hill today with what theyre calling a Charm Offensive of sorts. Were going to have a live report. The house is set to pass another, another temporary spending bill. I lost track of them. They want to avoid a Government Shutdown later this month. More when im joined by republican congressman matt gaetz of florida. So dont go away. Can you help with these . Were more of the plan, invest and protect kind of help. Voya. Helping you to and through retirement. Every curve, every innovation, every feeling. A product of mastery. Lease the 2019 es 350 for 379 a month for 36 months. Experience amazing at your lexus dealer. Imagine a world where nothing gets in the way of doing great work. Where an American Icon uses the latest hr tools to stay true to the family recipe. 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Reporter charles we just chased Mark Zuckerberg through the hallways of capitol hill from senator mike lees office all the way to senator josh Hawleys Office where he is meeting with the senator now. We asked him a lot of questions. How the meetings have been going. How his time is in d. C. He didnt respond to any of those. He is here today to make a point. He wants to put in face time with lawmakers, particularly lawmakers that have been really critical of his company. Last night he spent a few hours at a dinner hosted by senator mark warner, including a group of senators that included senator Richard Blumenthal who publicly advocated to break up zuckerbergs company. Blumenthal said the meeting went well. It was very interesting but still thinks there may be a case for antitrust concerns. He wants congress to look into it. I was impressed by a number of ideas and interests of facebook but i hope that we also can continue the conversation because i think it is important that we have more competition and Consumer Protection on the internet. Reporter lawmakers have been discussing a number of issues with zuckerberg today including election security, antitrust concerns, user privacy, conservative bias. That is one of those topics we expect them to discuss today, including with senator josh hawley who has been very outspoken with his concerns about conservative bias on the platform. He is also going to be meeting with senator cornyn later this evening. Im going to be meeting with mr. Zuckerberg this evening. I think continue that conversation. You have some of the president ial candidates on the democratic side say they want to turn social Media Companies into utilities. That seems a little radical to me, like a lot of their other positions but i think that is a conversation that continues. We need to find the sweet spot. Reporter another topic of interest, charles, of course facebooks cryptocurrency libra. A lot of lawmakers skeptical that is a good idea for the company. Zuckerberg could be here to convince some of those skeptics that cryptocurrency for the company is a good idea. Charles . Charles ceo of facebook putting in face time with our lawmakers. I gotcha. Thank you for your time. Great stuff. Appreciate it. Bernie sanders launched the socialist revolution in 2016. Based on polls and crowd size, folks, it is Elizabeth Warren that is leading it. Next florida congressman matt gaetz for the latest on what President Trump is calling president ial harrassment. Well be right back. You wouldnt accept an incomplete job from anyone else. Why accept it from your allergy pills . Flonase sensimist. Nothing stronger. Nothing gentler. Nothing lasts longer. Flonase sensimist. 24 hour nondrowsy allergy relief charles congress, they keep kicking the can down the road. Theyre voting for yet another continuing resolution. You know the crs that keep the government open temporarily . This new stopgap would keep the government running until the money runs out on november 21st. With the nations debt spiraling out of control, what needs to be done this time around many say, make a stand. Joining me republican congressman from florida, matt gaetz. Thanks for joining us. Thank you, charles. Charles i hate saying kick the can down the road i lost track. How many crs are there been . Dozens. I didnt vote for continuing resolutions when republicans voted for them and im not doing that for when democrats run this place. Were not raising taxes so were being fiscally responsible but your informed viewers know we dont raise taxes but raise spending we suck more than a trillion dollars out of the American Economy because we go sell federal bonds, that then the money is not being used to build businesses open new Branch Offices to invest in wages for the American Worker this is a bad day for washington. A bad day for the country. It is unfortunate, youre right this is business as usual and i wont stand for it. Charles it is always promoted whether the Mainstream Media or financial press, good news we kept the government open. Even though ironically it was closed for a long period of time the stock market took off like a rocket . Only reason why average americans dont feel a daily impact from our physical irresponsibility in washington is because the dollar remains the global reserve currency. If we keep doing this over and over again a new normal, sucking a trillion dollars out of the economy we risk at some point the dollar not being the reserve global currency. At that time there will not ablin near series of changes. Well fall off a fiscal cliff. Well have to do the type of austerity intensely harmful to American Families we should make reforms now to our entitlements. It is not popular but we have to do it for the greatness of this country. Charles can that be done without term limits . As long as politicians have a reason to stay in d. C. , the more power they will, political will, no matter what i hear on the stump never materializes, yourself notwithstanding. I go to town halls, if folks raise their hand to support balance budget and term limits. Almost all of them do. I ask them to keep their hand up if they think congress will impose those things on themselves. Almost every hand in the room will go down. Our founders that the states would have to join together in convention of the states. Im proud when i was in the Florida Legislature i was one of the sponsors to put the state of florida into Constitutional Convention