powell: yes. first, let me say that tailoring of regulation is one of our most fundamental principles. we want regulation to be the most stringent for the most complex institutions and we wanted to decrease as he moved down to regional and community banks. this is something we strive to achieve. we are taking a fresh look at that now. i would point out a couple of areas i think, certainly in capital, we require the largest banks higher capital and we have less stringent requirements as he moved down and much simpler. i would also point out something like the volcker rule, where it can apply in its most and thatgest form to the banks have large trading books and much less stringently, we believe as we go through other banks. i saw that your proposed bill exempts banks under $10 million from the volcker rule, which is something we are in danger with. >> my next question is on that bill. two weeks ago, 20 u.s. senators introduced the economic growth regulatory relief and consumer protection act. i wi

jerome powell: yes. if you look of the four pillars,s, the reform they could be made more efficient. there are a number of things i wouldn't roll back. senator warren: what would you make stronger? jerome powell: i think about the resolution, we expect firms to make progress on stress testing. senator warren: you would want to see living wills? jerome powell: i'm not thinking about more aggressive rules than our expectations. revisitwarren, if you the rules, the question i'm asking is the reverse. i don't want to see a one-way street where it's about rolling back rules and not considering places where they need to be stronger. jerome powell: i get your question. there are a lot of problems we need to address in the banking system. we have had eight years of writing new rules. i can't think of a place where we are lacking in an important rule. i think we filled out the rules we need and it's now about dealing with things from a supervisory position. : you haverren been there for five years. you don't thin

powell: yes. when you think of the four principal pillars of reform, think they can all be made transparent,more clear, efficient. there are a number of diggs it would not roll back. are thewarren: what rules you said you would make stronger? mr. powell: i would expect to make progress on resolve ability, on stress test. senator warren: so you would want to see rules that were more strong on the living wage for example? that is the question i'm asking about. for rollback purposes, that is what you said in your testimony. see a one-wayto street here where it is all about rolling back rules and not considering the places where the rules need to be stronger. mr. powell: i would say that there were a lot of problems that we need to address in the banking system. i think we have had eight years now of writing new roles and i cannot think of a place where we're lacking in appropriate roles. i think we still have roles we need. we need. senator warren: of all of the rules you have issued, capital, i thin

j powell seems to be the one. you two were just disgusting, a muted market reaction despite the fact that this is seen as continuing the policy path that yellen has set out over four years. bloomberg news had lots of scoops in the last couple of weeks suggesting that donald trump was leading -- leaning towards jay powell. taylor then more hawkish on policy, quicker to raise rates, that could of been the market reaction. this was telegraphed so much so by the white house. it janet yellen's term ends on february 1, so the question i does powell have the right stuff? he started off as a lawyer, went into investment banking at dillon read at bankers trust. ,e did work in the government specializing in capital markets and issues related to finance. he was an undersecretary. he's been with the board of governors and 2012 and he does have a lot of experience. a very important thing, he's expected to stay on yellen's policy path track. it's look at some of the things -- let's look at some of the things. the fed is very cl

we don't know on powell. all thehe markets with speculation did not seem to be too curbed by this pick, in fact seeing it as janet yellen 2.0. it makes you think why didn't donald trump just picked janet yellen again? validhink that is a point. i guess i would suggest that maybe this is the apprentice picking of an important government position and an american institution come but -- institution come but we have had analysis of governor parnell versus taylor that the market -- versus taylorl that the market has set up for this. the market has priced this in. you make an exceptionally valid point about the idea he will be "just like janet." the line, particularly for our international audience, the -- you have the rate jerome powell. there is a point that the feeling is jerome powell will have policy similar towards the tendency of an arch phd in macroeconomics janet yellen. thank you so much. i'm glad we cleared up the phone line and you paid your bill finally. tom keene, our bloomberg surveillance anchor. bi

powell: i do. increasedollen: if we the national debt, we are going to make those problems even worse. in other words, they long-term debt impact, harming economic growth, isn't that the case? sen. van hollen: -- mr. powell: i think the idea would be to get gdp growing faster than debt over a long period of time. sen. van hollen: seo any doubt in the congressional budget office's analysis of the debt increase that will result from the bill that is the proposed by republican senators? i haveell: to be honest not looked at that, it is not something we are responsible for. sen. van hollen: you have no reason to doubt those numbers. mr. powell: i have no reason to know those numbers, much less doubt them. sen. van hollen: you have no concern over the debt impact of decisions by the house or senate make? mr. powell: it is a bit of a fine line that we have to walk. i'm hoping i can walk it. clearly, the debt needs to be on a sustainable path. i think we all agree on that. on the other hand, it is not for

you kind of economy with jay powell -- what jay powell -- would jay powell be inheriting? can we get to 4% gdp with a tax-cut? marty: the can get anyone if you're willing to inflate the budget deficit enough. the question is can we get to a higher growth rate on a sustainable acis so we're not a sickly -- basis to we are not borrowing higher amounts in the deficit? i am not so sure. back to jay powell, by only way to get back is adopting policies designed to increase productivity and potential outputs. he is potentially buying into some sort of supply-side theory, where if they streamline its and improve the tax code, they could improve the economy. those a key litmus test for all of the fed candidates to make sure they were not smother any benefit from trumponomics with higher interest rates. tom: we just saw the president speak with the republican leadership. there is an essay about how president obama thanks people in the room versus how president trump thanks people in the room. what was interesting is how the president stayed with his optimism on 4% gdp. can you take

every time something come up, my name, powell, powell, powell, keep on coming up. and then i got so many keep aways in your jail every day people constantly keep-aways on me, and right now the only dorm i can go in is on the sixth floor, dorm three. >> ask yourself a question. >> what's that? >> why is everyone putting you down as a keep separate from? >> they scared of me. i can't help how i used to be when i came here in my past. but i ain't that type of person no more. they keep saying they're scared of me. >> i'll have a conversation about you pal. all right? >> all right. >> coming up, de shawn powell goes on the defensive. two friends lobby to enter the jail's drug program. >> so what i want you to do is reach down inside really what's going to be different this time? . fibromyalgia is thought to be caused by overactive nerves. lyrica is believed to calm these nerves. i'm glad my doctor prescribed lyrica. for some, lyrica delivers effective relief for moderate to even severe fibromyalgia pain. and improves function. lyrica may cause serious allergic reactions

we are about to find out if jerome powell is the pick. liz: what will jerome powell and his decisions about interest rates really mean for your money? it is imminent, the changing of the guard at the federal reserve, president trump's frenetic day, you've been watching him on fox business hour after hour appearing multiple times in front of live cameras about everything from the tax reveal on behalf of the house gop to all kinds of issues including broadcom coming back from domiciling elsewhere in singapore coming back to the united states. we're looking live at the white house rose garden, and the president will announce his pick for the nation's top banker. fox news has confirmed over the past several hours that the federal reserve governor jerome powell will be the one to get the nod to replace janet yellen, who actually was up for it. there is a mystery here, why replace janet yellen with basically what many experts see as her identical twin when it comes to the pace, you can't be if you're a guy, fraternal twin when it comes to the p

uniqueness of jerome powell. the elephant in the room for chairman powell, speaker ryan, senate majority leader mcconnell, and i would suggest the president of the united states, deficit to gdp. ugly, isthat is pretty this going to be the backdrop of a powell chairmanship that overwhelms every discussion? >> in the short-term, no. in the long-term, probably. this has not put pressure on the bond market recently. we know the demographics start to drive a structural deficit in the u.s.. when you add to that tax cuts, possible possible. tom: how do you frame cost to is reform that with quotes around it. get to different numbers based on assumptions you make about growth and offsets. these are fuzzy numbers. you have to treat them as an opening bid. we have to understand where the cost cuts will come from. francine: if this gets put to bed, what is one thing it impacts? gdp? if so, how much? impact to gdp is probably modest. if you're talking about a $1.5 trillion tax cut in context of a $20 million economy, this is

thank you, esther powell. jerome powell: thank you. : one more. governor powell, large banks of been fined $160 billion since the crisis. recidivism continues and regulators are reluctant to have harsher penalties. wells fargo has a new scandal --t arises every week or it week. do you view this as being too harsh? jerome powell: i guess i would regard the fact we are still seeing things like what you referred to in the paper as very disturbing. i don't think i would characterize our reaction to these problem's as too harsh. i think it's appropriate that we strike a professional tone in our supervision of financial institutions. we try to do that. my main reaction to what you referred to is one of concern that institutions are still having problems with bad behavior and bad conduct toward consumers. senator: can we address the issue? the conversation you just had with senator brown and the changing of the thresholds that would diminish any stress test for wells fargo as well as bank of america, is that true the way you read the bill? jerome powell:

jerome powell is supposed to speak tomorrow. if he does become we will watch what he says very carefully. >> absolutely, although the speech will be focused on what replaces libor, a new reference rate for consumer loans and , so he can stick to the topic at hand and egg nor fed chair monetary policy. of talk about jerome powell as a continuity pick. what would be the changes though? >> probably subtle. change without disruption is the key. trump says he likes low interest rates. he get someone who has bought into the current trajectory who is a republican who can say he is his own person and a former businessman. let's not forget about carlisle. julie: are you talking about the politicization of the feds. >> there is no political process there whatsoever. julie: talk about the change. what do you mean? maybe thesident said desire to put your own stamp council little bit against janet yellen. greathas not shown a preparedness to key personnel selected by his predecessor. broken with a bipartisan tradition as far is the fed chair

powell. janet yellen is not due to step down until february. baton theanded the janet yellen, most of the time, they go up until the end. jay powell also knows -- already knows everybody at the fomc pretty well. they have to get ready for the job in front of him. he sounds like a fed chair, don't you? he spoke earlier in the rose garden. let's hear what he said. as long as he passes the senate confirmation, he will take the chair. >> we understand that monetary policies matter for american families and communities. i strongly sure that sense of mission and then committed to making decisions with objectivity, based on the best available evidence, in the long-term policy of monetary independence. kathleen: isn't it interesting that he chose to include the phrase "monetary policy independence." it is a given, they are independent from the federal government, congress, white house, and they have to answer to everyone, including the american public. i wonder if on some level he is already starting

powell. what are your thoughts? sen. warren: i am really disappointed that janet yellen was not renominated. since 1979, not to be renominated that happened. regardless of party, both directions. janet yellen made it clear she wants an economy that works for working families. jerome powell has been with her on a lot of that and that goes a long way with me. we have a hearing coming up. i will be asking hard questions. i will be asking hard questions and see what he has to say. janet yellen made it clear she wants an economy that works for working families. kevin: one final question in terms of perspective. you had a tax bill today. pauly, indictment over manafort and several others. a terrorist attack in new york city. put in perspective for me and our audience about where you are in terms of this week. sen. warren: this weekend every paycheck toit is paycheck families will make it in this economy. and whether this government is just working for those at the top, tangled up in its own politics or whether it is actually t

am i being overly nervous for jay powell? if he comes in, inflation isn't rising, and he takes over, and it's his turn to look and god policy, everyone is assuming he is janet yellen 2.0 -- what if he says, i'm concerned about the yield curve? everyone is going to say, it's because he is a republican. knowing what i know about jay powell, that seems unfair, but it seems like it could put him in a difficult position, especially if he decides inflation is too weak and the economy is not strong enough. stephen: that is always a concern, and there is always talk about that. for example, greenspan, when he came in, he was thought to be course,itical, and of his reputation definitely changed. i think that is a legitimate fear for him. he comes in at a time when things could go in a number of different ways. because he is not a phd is that oney guess of the main characteristics of his term as chair is going to be that he is going to be a consensus builder and someone who looks to gather the votes gather the votes around the table an

it is powell, powell, powell. julia: the president says she is. the president has said area bad word about her. she has done a great job and he said so. she is not looking to go up and have monetary policy is. tom: this goes back to any number of series of talks in washington. jeff rosenberg, is the desire joh, or jay, low rate low rate janet? jeff: not going to go into the mind of our president. clearly the media stories and the lack of pushback on them have solidified powell as the market expectation. it would be a very big news item, a very big surprise to the market. i think we will move forward. we will talk more about what does the rest of the board makeup look like, because that takes on greater importance with a different kind of fed chair than we have seen in three decades. they do not dominate proceedings, does not come from a monetary policy background. it will raise the importance of the staff and the makeup of the rest of the board members. scarlet: i'm looking at this statement. voting for the fomc monetary policy -- they struck out

based on the best available evidence in the longstanding tradition of monetary policy independence powell will replace this woman as fed chairman janet yellen she succeeded ben bernanke in twenty fourteen under previous u.s. president barack obama. i think she could be seen as one who kind of carried the torch and continued the bernanke doctrine in his wake and did a great job in terms of communicating policy intentions and telegraphing those moves to markets so why is trump breaking with tradition and replacing the fed chair after only one term experts agree that yellen led the fed with a clear vision and concrete results but the president wants to get rid of an appointee brought in by barack obama although trump needs a yellen style fed he needs it without janet yellen which makes powell the perfect choice for the job let's check how markets have reacted to the news as a financial correspondent standing by in frankfurt for us we have investors taking the nomination of paul. they've taken they've taken it positively i know most people would have liked to see janet yellen be able to conti

powells of jerome himself, he brings a lot of quality to the table. when he spoke today and talked about coming to the fed and the importance of what the fed does, he talked first about the strength of the economy and understanding the role of the central bank and how important it is to american lives. he mentioned policy independence . it is interesting he has said this since he is a republican picked by a republican. in confirmation hearings he might get asked about that. powell is known as a consensus builder and has expertise in capital markets and banking and is seen following in janet yellen's footsteps. i asked dennis lockhart, former president of the atlanta fed, who came to the fed with a long career in banking and became a voter policymaker and did well at his time at the atlanta fed, i asked him if he will follow in janet yellen's footsteps even with inflation so far from target. here is what dennis lockhart said. dataflation and inflation are very much i think in the minds of the policymakers. time, i think jerome powell and the fomc for t

powell saying we expect rates to rise, the balance sheet to shrink. on bank regulations in a somewhat hot exchange with senator elizabeth warren mr. powell saying i think those regulations are in his words tough enough, said he expects a 2.5% gdp for 2017 and 2018, roughly 2.5%, he said. our senior economics reporter steve liesman listening and watching all of this steve no, reason to believe that jay powell won't be confirmed. also from what we heard today, no reason to believe it's going to be any dramatic shift in policy from his predecessor. >> i think that's the key right there, scott it sounds like he's on track to maintain the basic policies of the janet yellen fed if and when he's confirmed, and i think that that will probably be the case. he went on to say, on track for the december rate hike i want to talk about full employment and he did say, quote, we can push harder on maximum employment and we're doing that i think unemployment will go below 4% so he's kind of on the dovish side when it comes to the issue of unemployment, and he talked a

it will be interesting to see how a powell-led fed will react to tax stimulus. what do you think his response will be if his view is like yours, this is late cycle? >> it's uncertain now. you know, i'm not making big bets as to what happens with tax reform any more than you would wanted to make big bets on healthcare reform. what's interesting is that practically every fed chairman that has been a newbie back to arthur burns made interest rate increases their first move a lot of the time we're already in that process. look what happened with alan greenspan, took over from volcker, raised interest rates, flattened the yield curve and then 1987. i'm not saying that will happen this time around, but we're in the full swing of the fed tightening cycle people call it normalization, that's a nice way of saying they're tightening flattening the yield curve my sense is that -- everybody talks about powell and a new fed chairman but you are very rarely seeing initially that the new chairman puts his or her own stamp on the fed. you have to remember it's a whole committee

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powell: thank you. [applause] pres. trump: he is joined by his wife and his two sisters, and i say congratulations to you all. please, take that bow, you deserve it. thank you for being here. today is another important milestone on the past to restore economic opportunity for the american people. and just a short time, we have already made incredible strides. unemployment is at its lowest level in more than 16 years. you know that very well. you know that very well, you are happy about it. we have had back-to-back quarters of 3% growth, a major accomplishment, and we are doing better and better every, single week. but if we are to sustain all of this tremendous economic progress, our economy requires sound monetary policy and prudent oversight of our banking system. that is why we need strong, sound and steady leadership at the united states federal reserve. i have nominated jay, it is so important, he will provide exactly that type of leadership. he is strong, committed and smart. if he is confirmed by the senate, he w

powell? carl: i think this was the push for someone with significant well polished chops in the financial sector. jerome powell certainly has that in spades. that was one of steve mnuchin's priorities. as with the about the vice chair, if you are putting john taylor there, there is a potential conflicts between a low rate sky and a high rates guy. i don't think that is what is wanted and i think that may be john taylor as a spot at the fed, but might just be at the governor, but not as the vice chair. alix: what about the deficit the treasury has to fund and what does it do for powell on whether he keeps rates low or not? carl: absolutely. powell made some comments in january where he basically talked about boosting potential growth in the economy and that was the way to really get the high interest rates and that was his way of signaling that if trumpenomics is going to give us a growth boost him if it does not appear to just be a sugar high, but a sustainable growth, that the fed would not

and jerome powell has been nominated as the new chief of the u.s. federal reserve, but will he push for the same old policies? we will get reaction from wall street. in the seventh game of the world series, the houston astros take down the los angeles dodgers to take baseball's champ. this was the astros' first ever world championship in their 55 year history. we take a look at how they did it. ♪ brent: i'm brent goff. good to have you with us. today, he defied an order, but the ousted catalan president is not facing arrest, at least not tonight. reports from spain say that a judge will not issue an arrest warrant for carles puigdemont today. what happens tomorrow remains uncertain. carles puigdemont failed to show up in court in madrid today, to answer questions on catalonia's declaration of independence. he is currently in brussels, along with four other members of the dismissed regional government. the judge in madrid sent eight other members of the former catalan cabinet to prison today without bail. correspondent: "freedom," chanted the demon

powell was to do anything like that, as well. get onea while, you do or two fed members lower down the chain may be a bit on the extreme, but for the chairman to be so is unlikely. guy: folk are raised interest rates to 15%. he was followed a few years ago by ben bernanke who did the opposite. monetaryaries of policy by those two gentleman got considered -- extended quite considerably. history will be the making of this. we don't know what history will throw up. market's collapse, how would he react to those kinds of things? mark: you make a good point there. the thing they have in common is they both inherited crises. volcker inherited a huge inflation crisis, bernanke. part of the financial crisis. if mr. powell found himself in a deep crisis, he'll really find out what he is made of. he will probably have to make things up on the fly. we saw how well bernanke and his colleagues came up with new policies and powell could get the same situation. read the in -- intellectual underpinnings they provide, but the market is pretty muc

jerome powell named as the new boss of the us federal reserve. time now for a look at the story making headlines... we begin with what's on the front page of the financial times. and, after months of speculation, donald trump has nominated jay powell as the next chair of the federal reserve as the president moves to stamp his mark on the world's most powerful bank. turning online to the spanish publication, el pais, a detailed look at what happens now to former premier of catalonia, carles puigdemont, if he's issued with a european arrest warrant while in brussels after refusing to appear in a spanish court. in the daily telegraph, here in the uk, this article speculates that british prime minister theresa may has given a "clear indication she is planning for her succession" after brexit, by promoting one of her closest allies gavin williamson to the cabinet. over to the new york times, and "the chef who fed puerto rico." jose andres arrived five days after hurricane maria and has now served more than two million meals — what's claimed to be th

during his testimony on tuesday jay powell hinted that we could see a continuation of interest rate hikes as yellen suggested as well and didn't take opportunities to comment on the tax reform plan when asked by some senators who do you think that he will really be that much different from yellen. look i truly appreciate the fact that he sounded like an adult. whoever asked of the question in the senate yesterday he pushed it right back on them and said this is not the fed's purview this is your job do it and he moved on and i found him to be very articulate and very forthright and aggressive even in the way he was able to push on to the next subject because these are things that are not in the fed's purview to to address nor should they be and i have high hopes that jay powell brings independence back to the federal reserve and forces the fiscal authorities to start doing their jobs or one thing that stuck out to me was powells mention of the opioid crisis which he tied to long term unemployment about the fed so is this something you think road. all due deference to his very much acknowl

one of them is jay powell. and i think she'll feel comfortable handing off to him as her successor. >> woodruff: krishna guha, thank you very much. >> thank you. >> woodruff: stay with us, coming up on the newshour: an explosion of tech jobs creates a housing crunch in silicon valley. and a brief but spectacular take on investing in the impossible. but first, when it comes to providing innovative health care, pakistan is not a country that usually comes to mind. but in karachi, one public- private partnership is trying to address some of pakistanis' most pressing medical needs. in cooperation with the associated press, special correspondent fred de sam lazaro has the latest in our series, agents for change. >> reporter: on any given day at karachi's jinnah hospital, some 5000 patients arrive, wheeled in on rusty, bare metal gurneys by family members who wait- someties for days-in the outer corridors. inside are long lines-for x-ray scans or appointments with overwhelmed staffers. there are lots of exhausted chi

jerome powell is widely assumed to have if you are similarto powell is widely assumed to have if you are similar to janet yellen‘s. things should be the same, needing more gradual rate rises and a winding down of the federal reserve asset pile which it accumulated in an economy ravaged by the financial crisis. what is less clear is whetherjerome powell will have the same approach to the other big job of regulation. he spoke in favour of loosening rules for the banks put in place after the crisis by the bank. what is unknown is how he will manage relations with the president about to appoint him. that is michelle fleury who was extremely busy right now. that nomination news is expected to come before donald trump goes to asia. he has the big trip. he will go to china. china ahead of that is taking steps to boost for imports. we will speak to rico hizon. what has china announced ahead of his arrival? six days to go before donald trump arrives in beijing. china is making some moves to appease donald trump! beijing will be lowering tariffs when importing consumer products and stepping

powell, on your nomination. you know, both your immediate predecessors of the fed, chairman yellen and chairman bernanke repeatedly testified before congressional committees about their concern, about the impact of the rising debt, national debt on the economy. here is what chairman bernanke told the joint economic committee in june of 2012. he said, large deficits and debt over a long period of time raise interest rates above levels this where they normally would be and crowd out private investment and are bad for growth and productivity. they also may involve borrowing from foreign lenders, which is also a drain on currently u.s. income, unquote. do you agree with chairman bernanke's statement? >> yes, i do. >> here is what chairman yellen said this year on july 12th before the house committee on financial services expressing her concerns about rising debt. she said, current spending and taxation decisions will lead to an unsustainable debt situation with rising interest rates and declining investment in the u

jerome powell -- >> reporter: any concern about powell on regulation, wall street regulation? >> powell has aligned himself with janet yellen on a regular basis, and that is a good sign, but look, this is what hearings are about. i'm going to ask him some tough questions and see what his answers are. >> reporter: elizabeth warren, thanks so much for being with us. >> thank you. >> kelly, back to you. >> all right our john harwood speaking with senator elizabeth warren thank you both very much. >>> how much of an impact will the iphone x have on apple's earnings guidance? we're going to have instant reaction to the tech giant's results coming up. we're back in o.tw >>> let's head back over to julia boorstin with an update on cbs' earnings. julia? >> yes, an update, kelly, cbs though it missed the top line on revenues earnings actually beat, we're correcting the earnings number, adjusted earnings per share were $1.11, beating estimates of $1.07 per share we're correcting the number previously reported. revenues falling a bit light of estimates at $3.17 million. earnings beating

remarks on education and wrote agree one hundred fifty percent with powells connecting gradation of education in one nine hundred seventy s. and one nine hundred eighty s. to rising inequality in the decades that followed these are fundamental changes our politicians not central bankers must address so can you elaborate on what you meant by that. well how was very he was very articulate in saying that the inequality crisis that we have on our hands didn't happen overnight this was the degradation of the u.s. education system that occurred over several decades of a time when when you just unionization took over the ability to educate our children on an equal level and now we have what the aftermath of this terrible crisis of education in this country i will say that federal reserve policy has exacerbated it and widen the inequality gap by helping the top one percent gain wealth as they have these past few years thanks to the thanks to the fed's unconventional monetary policy but again it is the job of the fiscal authorities to to reform the education system not that of the fed one th

powell on your nomination. you know, both the immediate predecessors of the fed, chairman yellen and bernake testified before congressional committees about their concern and impact of the rising debt. national debt on the economy. here's what chairman bernake told the committee in june of 2001. he said, large deficits in debt over a long period of time raise interest rates above levels where they normally would be and crowd out private investment and are bad for growth and productivity. they also may involve borrowing from foreign lenders which is also a drain on current income. unquote. do you agree with chairman bernake statement? >> yes, i do. >> and here is what chairman yellen said this year on july 12th before the house committee on financial services expressing her concerns about rising debt. she said current spending and taxation decisions will lead to unsustainable debt situation with rising interest rates and declining investment in the united states that will further harm productivity growth and liv

. >>> president trump expected to tap jay powell to be the next fed chair. the president will make the announcement this afternoon in the rose garden. let's bring in steve liesman to discuss that that's what the reports are indicating i know people are talking about monetary policy. he seems market friendly i want to know why president trump is breaking with what decades long tradition and not reappointing janet yellen. >> maybe we'll get a chance to ask him that question in the rose garden today. it's a good one and one people are asking two other questions are what is the jay powell chair meaning for monetary policy and bank regulation on regulation, many think he'll bring a lighter touch to the table. here is he in june in which he generally supports the post-crisis framework but calls for adjustments. the post-crisis reform program has been mostly completed and has been mostly successful i think it's our obligation now as we reach completion of it to look back over it and ask what aspects of it may be redundant or inefficient but there's going to be some

on cnbc i don't know that other networks have had quite as much live jay powell as we have had. in the first interview i did with him, you got his early read that he would be one of the ones who would break with the consensus on the fed on things like the volcker rule. he sort of laid the ground work for that and was more rethinking dodd-frank it's also important when he says we will keep to the core reforms. so he does not agree with the president when president trump said there was a big number on dot frank. >> i do think that the market wasn't expecting to see a tear up of dodd-frank that's become clear already. just nice to get the confirmation yesterday >> i think that's right. as you know having attended the speech by randy quarrels, these people are now appointed, in place, pending jay powell's senate approval and that allows them to get to work. and so much of this for banks can be done without the need for further bills in congress. it's an encouraging thing that he's pressing ahead on that track. >> the focus is on the smaller and regional banks the idea they'll have t

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rates in december touring its next policy meeting powell told the senate banking committee the case for raising rates a strong the rate hike is likely to range between one point two five and one point five percent and it would be the fifth in two yes despite being a republican paul has said that the u.s. central bank will continue his predecessor's policy of raising interest rates grab to me continue to consider. let's bring in our financial correspondent sophie ski in new york now sophie investors will have been listening closely to what jay powell had to say how all they reacting to his proposed normalization of interest rates. well pretty positive way helen are when it comes to interest rates powell is quite close if not completely in line with janet yellen as investors love this because that makes him predictable he might move a little faster though with further rate hikes then yellen might have done that something but in a hearing today in front of the senate committee he declined to give a specific answer on whether the central bank would raise rates later this month but he sa

they believe powell will receive democratic support as he did under psident obama. i'm steve liesman in washington for "nightly business report." >>> apple's earnings would be our lead story on almost any other night. let's get right to the results of the world's most valuable publicly t company. strong demand for iphones helped the company earned $2.07 a share. that handily beat estimates. revenue rose for the fourth quarter to more than $52 billion, helped by a rise in sales in china. investors liked the results and the forecast of record revenue in the current quarter, sending shares initially higher. thecompany's market cap hitting $900 billion in late day trading. josh lipton has more on appl >> reporter: 46.7 million. that was one big number in apple's latest earnings report. it controvero the number of iphone units shipped in the quarter, better than what analysts had called for. another big number in this report was this december revenue guidance that apple gave, callg for between 84 and $87 billion. the midpoint of that guidance is better than what the stre

powell has consistently voted with ms. yellen slowly raise interest rates and fellow assets following the recession. colleagues consider him a centrist and pragmatist. the president announced the choice in the rose garden earlier today. pres. trump: thank you very much. please. i am pleased to welcome members of the cabinet, members of congress and distinguished guests to the white house rose garden this afternoon. also, i want to welcome the chairman of the senate banking committee, who has done an incredible job, mike crapo. great job, appreciate it. [applause] pres. trump: as president, there are few decisions more important than nominating leaders of integrity and good judgment to hold trusted positions in public office. few of those trusted positions are more important than the chairman of the federal reserve. accordingly, it is my pleasure and honor to announce my nomination of jerome powell to be the next chairman of the federal reserve. congratulations. mr. powell: thank you. [applause] pres. trump: he is joined by

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everyone focused on what powell means. do you share the view that powell is something of a smith transition from janet yellen? richard: there were more candidates that were more disruptive. it from what we understand of s markets this is not a dramatic transformation. chart.we have, this have thisne -- we chart. everything is awesome, which is the s&p 500 ratcheting higher. one of the best days this year but the inverse is the bond market. one market believes in the growth story and the tax story and the other market does not. the bond market is not convinced. where do you stand on growth momentum in the u.s. and the equity market, tired rally or more to go? richard: moore to go. what is the u.s. economy doing? it is reasonably firm. it is not moving. as we go through 2018, it is probably going to sell a bit. we're going to be in an environment where growth is perceived as holding up. the big risk to the rally in global assets is if we get a sharp growth slowdown, that is not our central scenario at this point. theher key

powell testified for two hours. theg those questioning nominee, ohio democrat sherrod brown. >> i like what he has done and i like what he said today. i'm always skeptical because of the director of supervision. it's a bank governor in charge of supervision at the federal -- almostho is out of out of central casting from willful wall street. and that concerns me -- from "wolf of wall street." and that concerns me. mark: he was asked to get his input on what the tax cut would have. saying it was not yet clear what outline the final measure would take. global news, 24 hours a day, powered by more than 2700 journalists and analysts in more than 120 countries. i'm mark crumpton. this is bloomberg. shery: mark, thank you. gop leaders face a balancing act in the senate to get their tax plan to 50 votes. even if the legislation makes it through the congressional gauntlet, will they live up to promises of economic growth? our next guest is doubtful. we're joined by former deputy secretary of labor for president obama and cu

powell would be expected to continue that. how aggressively he might raise rates in the future, that depends on what the economy does , but like i said. for host: what the fed has been doing. kenny -- for what the fed is been doing. host: as the press is a and confirmation goes through? guest: the fed's's top policymaking body, the open market committee just met this week and they announced yesterday, they are keeping the main borrowing rate which affects interest rates the same. it is currently between one and one and one quarter percent. but they are expected to raise rates by another quarter percent in december. the statement yesterday gave no indication that the plans have changed. islooks like a december hike still on track and that will depend on what happens with inflation because the fed typically raises rates as a guard against prices going up and inflation has been weak, which has made people question whether aggressive rate hikes are really needed to the fed has been taking a more gradual approach. that will be some

anna: a range of reactions there, the news that powell is tapped for the job. expertise to us if you could. what is he expected to do with monetary policy, he is a relatively known quantity. kathleen: he is at this point. has been with the consensus for the last five years, the consensus that was built up and shepherded by janet yellen. gradual rate hikes, unemployment is falling, inflation is far from target but it will rise. he has been right in there in the middle, never dissented on policy. the question a bit about the phillips curve, is it .roken like other officials had economics is not his strong point necessarily. five years he picks up a lot, he is not an economist, he is a former investment banker and started as a lawyer. he went to the bush white house in the early 1990's and he was undersecretary of domestic finance. perhaps he has more experience on capital markets than bill gross realizes. when it comes to policy expect somebody to lead the pack but go with the pack and the consensus that it is already there. morning to you. good to see you. bank

powell, will he do that? david k.: the clear positive of jay powell is he understands regulation and is committed to efficient regulation, thinking about how you can have regulation which protects the system that does not impose too many economic costs on businesses. i also think we will probably get a continuation of this normalization process. if we had more of a macro economist they would be more likely to mess with what the fed is trying to do. i think you will see a continuation of the yellen said. it will require more than that -- the yellen said. it will require more than that. if you pass a tax bill with just one side voting for it, who is to say a few years down the other side will not push up corporate taxes and cut on something else? david: john bilton and david kelly, thank you both very much for being with us. the house gop tax bill sets a permanent 20% corporate tax rate. lisa shalett from morgan stanley joins us to discuss that. live from new york some of this is bloomberg. -- new york, this is

brian: i think jerome powell is the safe choice. like that we did not that it looked like they were not going to pick powell. we are down to 235 because there is some comfort that it will be the same as usual with no change. so, the federal reserve will keep ratcheting shortage restraints. that is pushing down long rates. the market does not have fear of growth or inflation and the yield curve is getting flatter. the market is signaling they have no fear of inflation. mark: so the yield stays below that key 2.4% level? brian: we are 235 right now. 230 and also to 45 on the high side. also 245 on the high side. jerome powell is janet yellen part two. mark: what will make gold go higher? brian: gold is a currency, so it has meaning able exchange. it is selling off for two reasons. the macro threat has diminished. north korea is not in the headlines anymore. spain is still one country. so the fear factor of buying gold is out of the market. the thing we just talked about, there is no fear of inflation. so the reason to own gold has dim