tv Maria Bartiromos Wall Street FOX Business March 10, 2018 12:00am-12:30am EST
gregg: dom, i short-changed you. i'll make it up to you next time i see you. thanks for joining us. commerce secretary wilbur rolls is among our guests monday. have a great weekend. >> announcer: from the fox studios in new york city this is maria bartiromo's "wall street." maria: welcome to the program that analyzes the week that was and helps position you for the week ahead. i'm maria bartiromo. former federal reserve vice president roger ferguson. gerri willis is standing by with the headlines from wall street to main street. gerri: the jobs report was a blowout by can standards. u.s. economy adding 313,000
jobs. january and december reports were resides upwards as well. unemployment rate holding steady at a 17-year low. one important number on the wage front. average hourly earnings rose to $26.75. the wage numbers easing investor concerns the fed will feel the need to raise interest rates faster. friday also marking the 9th year of the second longest bull market in history. since march 2009 the dow was up 280%. s & p up 280%. president trump signed a proclamation imposing tariffs on steel and aluminum.
president trump: today i'm defending america's national security by placing tar rifds on foreign imports of steel and aluminum. we'll have a 25% tariff on foreign steel and 10% tariff on aluminum. gerri: the tariffs are reportedly what caused cheer economic advisor gary cohn to resign. he disagreed with the president over the tariffs. he'll be leaving the white house in the weeks to come. that news sent the markets on a tailspin. where could cohn be going next? blankfine, one of the longest-serving ceos on wall street, and employee goldman for 36 years.
a diplomatic breakthrough with north korea. president trump agreeing to meet with north korean leader kim jong-un. this comes after south korea extended an invitation during a bilateral meeting with the koreas. maria: the recent volatility in the markets has brought the importance of long-term savings for many americans. my next guest is the perfect person to discuss how to manage this madness and save wisely for the long term. under allen greenspan. in 2008 he became the president and ceo of tiaa. with more than a trillion dollars in southeast asset management, it's the leader in helping americans plan for
retirement. roger ferguson, it's good to have you on the program. first off. got to ask you about volatility. ways your reaction to what we have seen this year versus a long time with no volatility. roger: first any market cycle there will be moment of volatility. we had a long period with francly too low volatility. so now it's getting back to normal. and i think it's a reflection of external circumstances and question marks the market. the big question mark, is inflation about to rear it ugly head? will the fed have to move more quickly than anticipated? obviously because the market has been doing so well for so long, there are a number of people saying how much is left on the
upside. and is this the time to take some off the table. and final there are some technical reasons that might have driven some of the volatility. >> you oversaw the fed along with allen greenspan and the time of really important for the markets. allen greenspan always looked at the wealth effect. you focused on the wealth effect. as you look back on this last decade where any economic stimulus we talked about was coming from the federal reserve, leaving interest rates at rock-bottom levels. it's time to get out of that, right? >> i think most of would agree it's time for the fed to start the process of normalizing. the question is the pace at which that need to be done. the fed kept interest rates low for longer than many people thought were wise. but today that has paid off in the sense the unemployment rate
continued to come down and we haven't seen inflation creeping up above the fed's 2% target. it's early to say they are hund the curve. but everyone thinks it's time to start the process of normalizing. i think the macro picture now is pretty good. way mean by that. growth continues here in the u.s. and importantly for the first time in over a decade we have global growth so that's positive. we finally start to see just a gradual uptick in wages which is important to the average american. the unemployment rate has been coming down gradually steadily without an uptick in inflation, and corporating earnings look strong. so i would say question. maria: you look at an economy that's getting better.
there are predictions of 4% growth this year. we are talking about jobs and people are worried wages are up 3% or under 3%. does that worry you? >> i think it's too early to be worried about wages being up. it should be shot of the as a net positive thing as long as it doesn't spill over unto inflation. the other thing we haven't talked about is inflation expectations seem well anchored. the fed has a great deal of credibility in markets left. it's a little too early to say we have to put on the brakes. that i think is not fair to middle america as long as there is no sign of inflation picking up. maria: this year is didn't because it's not just under rate increases we are watching. it's also unwiegd of the balance sheet. 4.5 trillion dollars. have you ever seen it in your
career? >> i think the fed is handling to date very well by being transparent about what they expect to do. and the markets seem to have taken it in stride thus far. >> these large companies in the tech world in my assaysment are not to be feared. they a liberty mutual stood with me when this guy got a flat tire in the middle of the night, so he got home safe. yeah, my dad says our insurance doesn't have that. what?! you can leave worry behind when liberty stands with you™. liberty mutual insurance. was a success for lastchoicehotels.comign badda book. badda boom. this year, we're taking it up a notch.
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>> announcer: welcome back to maria bartiromo's "wall street." maria: how important is this rollback in regulations the president has been so focused on? >> i think it could be potentially important. but the message is it has to be balanced. we have to recognize the financial system, particularly banks aren't better capitalized than they were before. we don't want to lose that
advantage. i like what i'm hearing the new vice chairman at the fed talk about he wants regulation to be more effective and more ficialghtd. >> it seems like we are moving into a period where it will be nirvana. you will have a higher interest rate and a better economy. better backdrop. >> those things things will be helpful to function services. by say be careful what you wish for. things such as making sure products and services are in the best interests of clients is an important natural policy we should not let go of. so we have to be prudent in balancing rollback with indeed the financial services firms didn't have enough regulation
that led up to the crisis. let's be thoughtful and not do a wholesale rollback. >> as we talk about the rollback and regulations in one area of the economy. i feel like the regulatory environment is going to get bigger on technology. are you expect the regulatory bite to become more severe as it relates to technology? these companies are different companies than they were 10 years ago. >> i do expect over time and we have seen this already around the world, regulators are becoming more underred in the newer sectors than they have went in legacy second towards. technology, healthcare, communications continues to be heavy regulated. anything that is large and influential will drought attention of regulators. maria: when you are a large company like microsoft in the
80s, they were in the cross-hairs, but other large companies like google are in the cross-hairs. >> they need to educate regulators on what it is they do and how it works and listening to the regulatory interest. regulators are reflective of a broad national interest. the place to start is good open transparent communication. these large companies in the tech world in my assessment are not to be feared, they are to be understood first and foremost. they are great creators of jobs, creators of wealth, so one has to be careful not to undercut the things they bring to the table. maria: as a businessman, someone overseeing 1.25 trillion in he sets. you have an infrastructure plan
on the way and an infrastructure paper coming out of your firm on the way. you have also got obviously the thoughts on trade, and a big issue this week about the president's new tariffs on aluminum and steel. how is he doing? >> the potential tariffs on aluminum and steel created a lot of controversy. they awakened our allies in europe threatening to put reciprocal trade barriers up. i think the president has to move circumspectly. my observation is there are folks around him who understand this very well. i understand there will be quite a bit of dialogue in the white house on how to proceed. maria: i think the deadline is april for aluminum and steel. he could be playing poker. >> i don't know the president at all. i would say he is known for the art of the deal.
to some degree he may be looking at this as an opportunity to deliver on his promises in the states that matter to him, the pennsylvanias. the jury why is out given the amount of news coverage on whether these tariffs are a good idea on both sides. the new tax law is interesting. the size of the tax cuts at a time when the economy is doing well. this is a bit of an experiment to have this much fiscal stimulus as the economy begins to do quite well. secondly, i think most of people would say it's a tax cut that will clearly help corporations which is a net positive. maria: roger, it's good to see you. thank you so much for spending the time. don't go anywhere. more "wall street" after this. >> announcer: when we return, maria's exclusive interview with
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>> announcer: welcome back to maria bartiromo's "wall street." now her understand view with treasury secretary steven mnuchin. >> the president's number one objective is economic growth. we talked about tax reform, regulatory relief and trade. first we executed on tax reform and regulatory relief. we are focused on renegotiating trade deals. secretary of commerce who i worked with for a long time. he delivered the 232. this is nothing new, maria.
this is part of a focused strategy the president is delivering for the economy. maria: this 232 notion that this is a national security risk is one of the reasons that people are questioning actually. after the president said that this was a national security risk he tweeted out that canada and mexico will not get subject to these tariffs if we get a good nafta deal. is this national security or playing fork on nafta? >> it is national security. canada is an important national security partner with us. we have good two-way trade on steel with them. the president spoke to trudeau and i spoke to the finance minister. we are cautiously optimistic on nafta. assuming we get the new nafta deal done, they will be exempted. maria: has anything changed in terms of their positioning as at result of this tactic.
understand stiewght or announcing and instituting these tariffs? >> i don't know in anything has changed or not changed. but it's a priority of ours. the president made it clear and a half tase an old deal -- nafta is an old deal. he wants to renegotiate. this is all part of our overall economic strategy. maria: $800 billion in a trade deficit and losses year after year, the u.s. is constantly on the losing end of a trade dice an issue. but is there a better way to get a better trade situation away from the tariffs on steel? even republicans in congress will say, maybe there is a better way to doirt, a more surgical way to do it. is there a different exclusion away from these tariffs?
>> i think you are talking about different issues. on trade we have a clear strategy on renegotiating. making sure american companies have a level playing field. we talked specifically about china. i had direct discussions with my counter part on chinese trade. we are determined to make sure we have reciprocal trade with china. maria: if this is about china, why not do something specifically with china. why a tariff on all makers of aluminum and steel coming into the country. why not deal specifically with china. >> we'll do that as well. but the president is determined we'll maintain the steel industry. this is not new. this is not the first time this has been done. and we have done
economic plan. so we are comfortable with the economic impact. and we are going to be careful. there is a process whether it's steel that we need. there will be a process to exempt things we can't make here. we'll be focused on the impact on jobs. maria: what is the impact on growth. if you actually see these tariffs take away from that growth, was it worth it? maria: maria, we are very focused. we talked about 3% sustained economic growth. a lot of people last year said that would never be achievable. we have had two quarters so far above 3%. the president couldn't be more focused on growth. most people come to la with big dreams... we came with big appetites.
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let's take a loo look ahead at market events that could impact your money. earlier in the week we'll get the consumer price index. the retail sales number as well, the producer price index. people are focused on inflation so we'll be zee flowing on those numbers. we'll get the latest on import prices. the empire state manufacturing data. and the jolts numbers in the week ahead. we get brand names like dick's sporting goos. , and tiffany. the founder of the charles schwab corporation, chuck swab joins us next friday right here. charles schwab my guest. of course back here on fox
business network monday morning on "mornings with maria." thanks for being with me this week. i'll see you next time. >> i'm bob massi. for 35 years, i've been practicing law and living in las vegas, ground zero for the american real-estate crisis. but it wasn't just vegas that was hit hard. lives were destroyed from coast to coast as the economy tanked. now it's a different story. the american dream is back. and nowhere is that more clear than the grand canyon state of arizona. so we headed from the strip to the desert to show you how to explore the new landscape and live the american dream. i'm gonna help real people who are facing some major problems, explain the bold plans that are changing how americans live and take you behind the gates of properties you have to see to believe.