bill dudley says it

tot does bill dudley have say? william: the economy is growing above trend and i have confidence that will continue. that will put more pressure on --ources, and we stood should see higher wages. it is about what is going to happen the remainder of 2018. as long as economists think we are going to grow above trend monetarya time i think policy is accommodative and financial conditions are easing, i will be supportive of monetary accommodation. are. see where we we saw information that the economy was much weaker than expected. that would change my mind if we did. but that is not that likely. ,e have above trend growth easing monetary policy, taking place with a large tax cut. en: we have a bond market selling off. yields are rising. 2.85% ingood jump to six weeks. it is on the rise. people are still looking at this and wondering how much higher it goes in terms of being lower in price, so that seems to be the trend. what does that mean for the path of rate hikes? does it mean higher yields? that the fed doesn't nee

president bill dudley from the new york fed, he said that markets are repricing. central banks are also moving tightening. and the bank of england made a statement about needing to properly raise rates a little more aggressively and a little faster. >> you really have to question the bravery of people. a lot of people are saying it is too early to get in. selloff overnight suggests the fragility of levels when it comes to sentiment right now. the volatility is still very much the story. deeper intot us get what exactly happened overnight that drove this movement. kathleen: in terms of what has been going on, it is mark carney speaking for the bank of england, bill dudley speaking from the new york fed. playing down that hikes could go faster in the u.s. three hikes seems like a reasonable pop. i think he was trying to calm the markets. ish the drop in the s&p 500 making it a full-fledged correction. not a bear market yet but a true correction. interest rates could drag down growth. it has been the trigger for some of selling. >> the charts say we are going lower.

david: that was new york fed president, bill dudley. we want to turn back to capitol hill where they are look -- working to keep the government we have bills in the senate and house due to be voted. we turn to kevin cirilli to bring us up to speed. where are they on the voting? , wen: over in the senate are anticipating some type of vote sometime this afternoon. there isn't a as if it time in order to get to that standpoint or we should note that here in the house of representatives, the story has been focused, because of the vocal critics of this, the has freedom caucus, they are not going to be able to stop this. to pass in thely house of representatives before the deadline runs out at midnight. we should also note that over in the senate, we have had potential 2020 democratic candidates voting, saying they will vote against this. they are not enough to derail it. a lot of posturing going on. this, if you are outside of washington, i would argue the biggest take away is this provides some type of economic certainty, gets rid of the ri

we spoke exclusively to bill dudley. his comments about this being small potatoes was interesting, almost taunting the market. >> the implications for the economic outlook are marginal. it probably will not change our thinking. if it were to go much further and be more persistent, it could affect household and business spending behavior, and influence the economic outlook. so far, i would say this is small potatoes. haidi: that is bill dudley speaking. is this something the markets are grappling with? after this expectation that if not outright stimulus, we are looking at the unknown with jay powell? steve: to a degree, yeah. been backed up by central bank liquidity for 10 years now. central banks across the world have been desperate to get out of the way of both markets and the economies. bit ofe giving finally a inflation into the system with a degree of relief. janet yellen, and her departing that ity, was saying would still be difficult to get inflation to remain consistently above that 2% annual target. that remains

my view is for a similar to bill dudley's. this is a correction. it is impossible to identify the bottom of the correction. i would say that after this correction the graph you showed on at the 200 day moving average actually was very significant. we probably bounce off of that average. we will not have an economic impact. data will still be good. one piece of inflation i followed closely is the it atlanta fed gdp forecast. therefore guessing the first quarter of this year gdp growth of 4%. the message from them is very clear. economicic, -- no effect yet. you said at davos, volatility is a comeback. take a look at this chart. this is what it is. when we updated the data, a change the narrative. the red dot is realized volatility and the china devaluation. the green. is brexit drama. here we are. volatility has risen exponentially, aggressively, do you think it is done? that is where the heart of these recent market moves were at the start of the week. >> i think it is very clear that that. you have on the graph of low volatility win of the fix was

we are expected to hear from bill dudley this week as well. we could see more said hawks chiming in. kathleen: i will be interviewing bill dudley on thursday, i am looking forward to it is a great time to interview someone who is arguably the second-most the who, arguablyone the second-most important parter is when it dudley left the new york fed. i want to show you this, there has been a lot of talking about average hourly earnings. these are the guys on the line, the production workers, nonsupervisory workers. look at their average yearly earnings. 2.4%. they have been there for the last couple of months. this is the american whose rages -- whose wages are not rising. when you are a bond trader, equity trader, you see something in a hitch your got in the gut says it is time to sell more bonds. yvonne: speaking of gutwrenching, we saw a very emotional farewell to janet yellen last week. it was almost two, the outpouring of support on twitter. opyourcollar was trending. pop her color during press conferences. it had everyone, including jay pow

so far, bill dudley says the market turil hasn't hurt the economy, at least not yet. >> having a bump like this really has virtually no consequence in my view of the economic outlook. my outlook hasn't changed because the stock market is a little lower than it was few days ago. it's still up sharply from a year thago. said, if the stock market to go down precipitousl and stay down, that would feed into the economic outlook and that would affect my view of monetary policy. >> robert kaplan added market corrections can be healthy m we'll hear more from the federal reserve on february 28th when the new chairman sits for testimony before congress. the first time he'll take questions at the helm. i'm steve liesman. >> well, when the fed does raise rates, interest rates on deposit accounts also tend to rise. slowly. the fed's latest rate hike is yet to result in more money in aiverer's pockets, so p w the fedex pechted to rates, maybe four time this is year, when will being a saver pay off? here to discuss is kimbee y palmer at rsonal financial websi website, nerd wall let. good to have you

i followed kathleen's interview with bill dudley last week. it was excellent. compared this selloff with the one in 2016. in 2016 the chinese economy was in trouble. we had recessions in the emerging market economies. tumbling.s were the u.s. economy weekend to weigh 1% growth on a year-over-year basis. none of that is happening now. to termsare coming with economic strength and the possibility of global central banks were moving accommodation, and they have to figure out where prices ought to be in that environment. that is what we are doing. i saw a very relaxed new york fed president. if there is a safety net, it is lower than what we are trading now. haidi: we will be back for now and get back to you in a moment. the ftn financial chief economist is sticking around. taking a look at how your markets are faring. the upside a quarter of 1% in new zealand. 247.kiwi dollar, .7 a sharp dip in the half hour of trading for the nzd-usd. comes to thehen it banks on day one of the real sector into the financial commission. utilities as well as energy names are draggi

bill dudley said the current market moves are small potatoes so far, no indications for the wider economic outlook. he said he is sticking with the fed's outlook for rate hikes. >> it is premature whether it three or four.o, this seems like a very reasonable projection. philippines posted a record trade deficit in december. exports fell but imports of capital goods surged. a shortfall of $400 billion was since 1980. the peso had its biggest drop. global news 24 hours a day, powered by more than 2700 journalists and analysts in more than 120 countries. this is bloomberg. go check on how the markets have been trading in the asia-pacific today with the julie sally in singapore. >> not very well. we are seeing this stock route continue after the s&p 500 entered correction territory. you can see major weakness from china and hong kong. down.i 400 is the hong kong hang seng up 1.3%. virtually no market is escaping this selloff. i want to show you how we are seeing the regional index as a whole fare. is thep of about 6.7% biggest we have seen in the regional index going back to september 2011. we

bill dudley has been outspoken in his view, the recent fluctuations in equities will have no impact on monetary policy. kathleen hays spoke with him on thursday. we have had today has no implications for the economic outlook. it proceeded a very large rise, so it stops here, the implications for the economic outlook are marginal, so probably not change our thinking about the economic outlook. further ando go on be more persistent, then it could start to affect household and is no spending behavior, and that could influence the economic outlook. so far, i think it is small potatoes. >> i was thinking about 2015, when we came into the year and the fed was going to hike rates in march and then there was brexit and a big selloff in the chinese stock market. the fed past in summer and in september, only one that year, so clearly there is a point where markets and market volatility have an impact on the fed's path. >> in the first quarter of 2016, it was not just the markets. commodity prices were falling sharply. putting pressure on emerging market economies dependent on commodity exports.

eastern rob kaplan is speaking in germany, and we'll hill from bill dudley, charles evans, and john williams today. >>> hasbro and michael kors before the open, and after, 21st century fox and tesla. the disney ceo saying wasn't aware of any other potential offers for the fox deal that he's agreed to >>> still ahead on "worldwide exchange," a big day at the house of mouse after disney's earnings beat the street they reported yesterday. a rundown of those results and comments from the ceo, bob iger. let's check in on furetus, down 270. >>> welcome back to "worldwide exchange." let's check back in on futures down close to 300 points, improving to 272 s&p down 22. the nasdaq down 9. the levels were at a relatively steady amount, so not like volatility we saw yesterday, and throughout the trading day itself, which were wild swings, closing up 560 points. >>> disney topping wall street's earnings expectations thanks to the success of its new avatar land bob iger spoke about the theme park performance last night on "closing bell. >> starts with success across the globe. particularly in some of our

dudley yesterday, this is knotis not a macro econ event yet. if we get four or five days more like yesterday, things will be different. this has been a prudent and k cautious fed over the last few years, they have backed away from tightening at times of market stress. i can't rule out the idea because the markets have not reached a floor yet. it's a case of see where we are on the data of the meeting >> is the entire goldilocks economy concept starting to unravel? if yields continue to push higher towards 3% or even 3.25, which is the target that some have, and the dollar goes along for the ride, that's de facto tightening there and that will bite at some point >> it's a tightening but not a big one. for an economy with a 4% unemployment rate and has enormous fiscal stimulus coming down the pike right now, actually from the fed perspective they're looking at a growth picture probably stronger than they expected a couple months ago so from their perspective when drawing up new forecasts in march they're probably thinking we'll get stronger growt

yorkand lb watching new bill dudley in a monetary policy. ata: president trump speaks cpac. will be watching that with respect to anything with trade deals. that is all. joe: have a great evening. this is bloomberg. ♪ >> you are watching bloomberg technology. let's start with a check of your first word news. president trump suggested today that a crackdown on extreme content in the u.s. could help stop school shootings. he spoke at a meeting with state and local lawmakers inside the roosevelt room. >> you have movies come out that are so violent, with the killing and every thing is, maybe that is another thing we will have to discuss arian -- discussed. fda -- : the theident drop asked the doj band rapid fire devices like those used in last year's massacre in las vegas. a ban to start a legal battle with gunmakers. paul manafort and rick gates were indicted for a second time. new charges include failing to them -- to report income the tax authorities and bank fraud. pressureput additional on them to cra

randy quarles and fed president bill dudley, raph bostic and rob kaplan all have scheduled events today. james bullard will be guest hosting on "squawk box" starting at 6:00 a.m. eastern time. that's one not to miss >>> hormel foods and blooming brands will post results before the bell hewlett-packard enterprise and hp will report after the close this afternoon >>> still to come, we're breaking out your rising rates playbook, what you should be doing with your money as the fed signals more rate rises to come. >>> and we'll discuss amazon with an analyst when we return experand the nx hybrid... nx, with a class leading 31 mpg combined estimate. take advantage of special president's day offers now through the 28th, on the 2018 nx 300. experience amazing at your lexus dealer. swho live within five miles of custyour business?-54, like these two... and that guy. or maybe you want to reach women, ages 18 to 34, who are interested in fitness... namaste. whichever audience you're looking for, we'll find them we're the finders. we work here at comcast spotlight, and we have the best tools for ge

first, the dallas fed president, and then the new york fed president bill dudley. this is bloomberg. i'm scarlet fu. julia: and i'm julia chatterley. welcome to bloomberg markets. ♪ are live in bloomberg world headquarters in new york over the next hour. here are the top stories we are covering on the bloomberg and from around the world. the path to recovery. u.s. stocks continuing to fluctuate, currently a little higher in the dow and the s&p as the downplay worries about the turmoil. and the view from goldman sachs. the banks presidents harvey's givesrvey schwartz his view on the markets in a bloomberg exclusive. and senate leaders strike a bipartisan two-year budget agreement. how will it fair in the house? under twots close in hours, and as we have seen in the past couple of sessions, the past few hours can be very volatile. julie: that it has been volatile already. this is remarkable by usual standards, but not of the past several days. the dow fell as much

we noticed that three fed presidents, robert kaplan of dallas, new york's bill dudley and san francisco's john williams pretty much reflected what loretta mester said this morning, is jerome powell, president trump's pick, signaling he's going fly away from the flock of fed presidents and maybe janet yellen? he's very concerned right now? what are seasoned traders reading between the lines about his remarks? ask him, traders at the cme, nymex and the nyse. what do you hear about this? >> when we talk about the fed, keep a few things in mind. they play the card close to the chest. they don't like to tip hands, not overly transparent. one tone we heard from ms. yellen which i think we're going to continue to hear about in the future is being data dependent. what's happening in the economy? how is the economy reacting to what's going on globally and translated into numbers that we -- liz: john, didn't that get the fed in trouble that forced them to keep rates so low for so long and look at the horizon instead of realizing they should have started incrementally raising rates a long time ago b

>> i think the bill dudley was a speechago that was long overdue from someone in the fed and he highlighted that we are moving away from this i get that we are worried about inflation and we backdropg to more of a that we should be worried about overheating. inflationt about that -jobs conundrum? on friday, the three-month reading, it is the best since 2008. how is it evolving? >> i feel like we are in a weird situation, literally me and my team specifically. tablee been hounding the on this idea of wage pressure and it will continue to build. after friday i am put in a position of defending the idea e pressure hasn't been affected in any material way. if you look at average earnings for production -- it moved sideways on a year-over-year basis. keep in mind that 80% of the pie, 20% of the pie sign increase in wage pressures. make no mistake our calls remain in place and that is the important context. nothing has changed post friday, and you think about the economy on friday, you should be thinking today. that number is not indicative. some of the talk about a 50 basis point hike, is that c

meanwhile, bill dudley weighing in on the selloff that an event in new york this morning. he said that big downturn is not a story for central bankers, and is not impact the economy much either. >> of the stock market were to go down precipitously and stay down, that would feed into the economic outlook. that would affect my view in terms of the applications for monetary policy. this is the big story in the press, a big story for financial market participants. i do not think it is a big story at all at this point for central bankers. kaplan: meantime, robert also addressing the selloff at an event in frankfurt earlier today. he said "corrections are healthy, as people know the u.s. and global markets have gone for an extended run without a 3% correction in low volatility." we are joined now by victoria fernandez. rita speak with you. we are two days past the selloff thatnday, and the turmoil we saw last week as well. what lessons have we learned from it? is it safe to say that there is some sense or semblance of normality that has returned here? i think so. when you look a

elderly causes -- calls -- bill dudley calls the stock situation, "small potatoes." mo brooks joins us live from capitol hill with his take. we have got u.s. markets closing and to bring our spirit julie hyman giving us an update. we are off the lows of the session. julie: yes. we saw the major averages falling more than 2% at one point. they have recovered from the levels. the selling is steep. by the standards of the last year. if not the last week. we see the vix picking up as well. unsurprisingly. another times during the week, there isn't much fundamental news coming throughout the day, it is more the gyrations and ripple effects that are continuing during the selloff as investors and traders try to position themselves. technical levels are becoming more important as well. take a look at the bloomberg. here is the s&p 500 with its moving averages. i want to zoom in on it to give you a look at what is happening in today's session. what you had here, here is that 100 day moving average. right now, we are right smack addict. 26.39 is that level. give it a day, we f

scarlet: bill dudley called it small potatoes. people are going to be thing attention to what mario and -- the federal bank officials responded this and address this, talk about it, bring it up in any way? if people are this nervous about central banks moving faster than they realized, then we are going to be looking at trying to read the tea leaves on everything. officials seen looking wednesday and say we are aware of the market moves and keeping an eye on it. we are steve mnuchin also saying, where verbal support, and that this point this is all we need. fed officials are saying we need a deeper correction. it is not to destabilize, we are not there yet. it is sort of a correction, and see soothing words, but no policy action is needed at this point. julia: what you're saying about inflection points, for emergent markets in particular, this is the critical thing. >> it is, i have been in emerging markets for decades, and it is tightening and stressful for emerging markets. whileates are going up brazil might not look attractive

bill dudley is swatting aside the volatility this week and saying, we're preceding at pace here you'll get rate increases. >> the fed gets paid to be calm in these sorts of circumstances. the only two things it cares about, if there's any danger to bank system and if markets seize up both of those would precipitate more immediate action from the fed. not reacting to things like that that has happened the last several days. >> jim, i want to let you weigh in on that point that the link between wages and inflation. >> yeah, i mean, there is. and that's been the one thing holding back is that we haven't seen the wages or wage pressure coming and that's spooked everybody. it's all central banks that matter because rick santelli coined the phrase, all stimulus bank is fungible, as long as it gets done, it's ease if you add up all their balance sheets all together, they're at a new all-time high this week. we have more ease in the system than we've ever had. i think the market's worried that uptrend of ten years of central bank balance sheets might be starting to peak. and that's bothering i

we did have a statement from one fed member, bill dudley, who came out today and said this is small potatoes. that was before we had a 4% plus drop on the dow. do you think we have another 5% he would change that tune? >> you drop the market by another 5%, small potatoes turns into a hot toe pate toe -- potato the fed will want to get rid of quickly. they responded in comparable manner in 1987 amid very strong profits growth. don't be surprised if the fed is compelled to change their strategy toward less accommodative monetary policy. david: not just the fed, john. as you well know it is happening all over the world. central banks everywhere are unloading the stuff they bought up over the past eight years. so do you think, if there is such extraordinary effort as you mentioned, the fed says we'll not sell off bond as much as we thought, you think there will be coordinated effort worldwide in that regard? >> it could be. not so much the fault of the federal reserve. i point my finger at the bank of china where debt growth and monetary growth has been running well above 10% for the longest per

bill dudley will be stepping down to. rep. waters: let me just say that i've been interested in diversity, and all of financial services, but particularly with the fed. the question that i asked today is about the opportunity to do some outreach and seek out people of color, folks who have not normally seemingly have the opportunity to have that kind of a position. i wanted to know would he be supportive of that? if it did not appear that they had done the kind of outreach that they were looking for, the kind of people that would help bring about some diversity, would he reject it, not support it? he talked about the fact that he believed, even in the past, they have done outreach that considered people who came from various backgrounds. i challenged that a bit, asked about whether he could share with us the kind of outreach may have done. i also asked if we could make recommendations. he agreed to both. julia: i want to talk about some common that you made over the weekend, speaking to california democrats at the party's annu

dudley's comment that oh, this is just small potatoes and i think that it was taken i think it was very poor context and i think that the equity market is showing them what small potatoes really is not. as far as 10 years yeah you bounce back to 283, you are going to go to 303 that's the next level. you're not going to get with the dow down 900 points and i don't sense it, it's going to give away any time soon but as soon as the equity markets stabilizes you're going to much higher rates. liz: the reason that andy just said dow down 900 points is because we just got there. hank smith tell me you're not buying something today. it's cheaper things are on sale. >> oh, absolutely. this is a classic time that you reallocate if you are under weight equities and balance portfolios, you take some of that fixed income money and you add to your equities absolutely. you take advantage of this. the important point here is the fundamental back drop of this bull market hasn't changed. gdp growth here and abroad -- liz: hold on, sorry hank. so sorry stop talking for one second. we've got to go right n

as the volatility is concerned, i think a key point is if you look at the statements being made by bill dudley yesterday, my successor at the dallas fed, who's good on market operations and markets, everybody's been talking about the fact that this volatility isn't necessarily bad from the standpoint of the economy. it's showing that financial assets are adjusting finally it's not a one-way street. i've been amazed how all the bank presidents, pretty much, and certainly the former chair on sunday morning, talked about the fact this doesn't spook the fed. i think it's pretty clear unless something super dramatic happens to the economy, they're going to continue on this path at quarterly point increases, maybe even four this year, and continue to pare back the portfolio. it's been well telegraphed everybody expects, and i think the market's adjusting accordingly. >> are you concerned with the weakness on the dollar right now? >> no, because i think fx markets, which i started my career in back in the 1970s, they come and go they're manic-depressive mechanisms like every other trading mark

bill dudley called it small potatoes. got aght last week we little bit of a disconnect between what the fed told us and the markets pricing down the curve. today it is changing again of course. we should not be worried about weekly moves. thing, as a technical we think and hope it is, i think the fed is on track for their three hikes. tom: one of the great ideas from people like you, is the idea that yields moving up is a good thing. bring up the chart, anthony. this is the 30-year bond. most bond portfolios are not out at 30 years. in price on7% now the 30-year bond from that moving average. explain to me why this is a good thing. on myeve i have a loss 30-year bond. erik: not a good thing at all. your point is right. we are in a state in my opinion when normalization is underway. fundamentally at a crossroads where yields are moving higher. our view is that it was delayed by the phillips curve. we think that with a tight labor market and the fiscal stimulus in america, you will get higher wages and you will get a higher

then we will get a better sense of if he is in the bill dudley -- and actually there is no one else so far who said they were worried about it. more significance than usual being assigned to this january consumer rice index dollars that is out in a few hours. what are we expecting? is it likely to move the markets? kathleen: it could. there on heightened inflation watch. this could be a market mover. rising 1.9%is seen year-over-year. 2.1% ineen rising at december. versuse is seeing 1.7% 1.8%. that is the picture you may see. bond traders and stock traders will have a lot to sort out in a quick. . period. it is not the main gauge. just remind us where those are. people will be reminded of that tomorrow. the fed target is green. and the inflator is white. up to 1.77%. core stuck at 1.5%. i think if this number were a lot stronger, the cpi, people would say it is moving up and they tend to move recently in the core.irection as a weaker cpi should already be a bit rice into the market. there is no doubt that bonds, stocks, the dollar and everyone will be ready. there are benchmark revisio

as you know, bill dudley will step down this year and the search for his replacement is under way. historically, the new york fed's close proximity to wall streetligstreet has led to the selection of an individual with close ties to the financial sector. in your view, how important is it that the individual chosen is a diverse candidate with demonstrated independence from wall street and a strong commitment to the fed's maximum employment mandate and regulatory responsibilities? what steps is the board taking to ensure that candidates from diverse gender, racial, and ethnic backgrounds are given due consideration? if diverse candidates are not afforded due consideration, are you prepared to exercise your power as chair to reject such candidates to serve as the next president of the new york fed? i know you have a lot on your plate, but i have to put this question to you because we've got to do better. about diversity. and particularly at the highest levels. not only am i looking at what's happening with the new york fed, and the possibility there, we have to look at our own fed and

eastern time randy quarles and fed president bill dudley, raphael bostic and rob kaplan all have scheduled events today quarr quarrels made comments at a speaking event in tokyo overn t overnight, but we have somebody here live. >> blooming brands, you know what that is >> blooming ononions >> a lot of casual dining f you're going to focus, what should they be known for those grease y beautiful onion rings. bloomin' brands. they have all these different things, if you want to define that company -- >> bloomin' onion. >> you had one of those things >> they're good. wouldn't have too many of them >> the big thick ones, but these are just -- any way. i'm totally distracted now let's get to our special guest, jim bullard is our guest host for the hour great to have you here the "journal," the lead, fed gives bullish signals on the economy. "a" s that the correct determination? brdz, a "b," are you more convinced as a group that the 2% inflation target is coming sooner? and this did not cause you to change the path in interest rate hikes. has the "journal" got all of those things right >> 2017

eastern rob kaplan is speaking in germany, and we'll hill from bill dudley, charles evans, and john williams today. as for earnings, michael kors will report before the opening bell after the bell, we'll hear from 21st century fox and tesla. >>> back to the markets, yield on the ten-year note, 2.77 one of the big movers in the market joining us is mark grant good to have you here this morning. we teased that you will tell everybody to calm down >> i've been doing this for 43 years. the issues have been since the central bank started flooding the world money, inflated everything and inflated asset prices this is a correction the world is not melting down. there are corrections with how you deal with what's going on, but this is just a correction. some days it's ugly. you have to put ugly in perspective. you just have to look at this rationally >> a lot of people think the correction was sparked by the rise in interest rates with that ten-year yield getting close to 3% do you think that's what caused this how do you assess interest rates impact on the market in the future >> i'll respond to th

as you know bill dudley will step down this year and the search for his replacement is underway. historically the new york fed's close proximity to wall street has led to the selection of an individual with close ties to the financial sector. in your view how important is it that the individual chosen is a diverse candidate with demonstrated independence from wall street and a strong commitment to the fed's maximum employment mandate and regulatory responsiblities? what steps is the board taking to insure that candidates from diverse gender, racial and ethnic background are given due consideration? if diverse candidates are not important, due consideration are you prepared to exercise your power as chair to reject such candidates to serve as the next president of the new york fed? i know you have a lot on your plate but i have to put this question to you because we've got to do better about diversity, particularly at the highest level. not only am i looking what is happening with the new york fed and the possibility there, we have to look at our own fed and think about how divers

in previous testimony, president dudley has, even mr. terillo has, about the complex of this rule that we're not getting it done. not doing a good job of even enforcing the rule but on this harmonization bill, i've had difficulty for members to understand that giving relief to banks under $10 million, community banks, is somehow letting those those community institutions sort of off the hook of safe and sound banking practices and i'd like for you to respond to what i've told them by saying our community banks are not subject to the volcker rule, that doesn't mean they're not subject to the careful scrutiny of our bank regulators for safe and sound banking practices and isn't it true that if one of your regulators went in a bank under $10 billion, a holding company, they were doing something you deemed unsafe and unsound related to volcker type activities that they could be disciplined for that under the existing banking rules >> yes, sir, it is absolutely true that we don't need volcker to go in and find unsafe and unsound practices in

noted in previous testimony, president dudley has, even mr. turillo has, about complexity of this rule, that we're not getting it done. we're not doing a good job of even enforcing the rule but on this harmonization bill i have some difficulty getting members to understand, giving relief to banks un$10 billion, community banks, which is what in senator crapo's bill in the senate, somehow letting those community institutions sort of off the hook of safe and sound banking practices. i'd like for to you respond to what i have told them. by saying our community banks are not subject to the volcker rule, that doesn't mean they're not subject to the careful scrutiny of our bank regulators for safe and sound banking practices. and isn't it true if one of your regulators went in a bank under $10 billion, a holding company, they were doing something you deemed unsafe and unsound related to volcker-type activities that they could be disciplined for that under the existing banking rules? >> yes, sir, it is absolutely true we don't need volcker to two in

no exception it's become inverted, which is often a sign of it failing completely that comment from dudley was very interesting he talked about how he fails to see the inherent value of cryptocurrencies i wonder if he would have a similar comment about the inherent value behind a dollar bill >> that comes up a lot, with a lot of the people who endorse bitcoin. thinking, well, it's not really -- there's nothing backing it they say, yeah, there's nothing backing the dollar either, remember what do you think, if the correlation between bitcoin and the dow has broken down. you were the first to tell us about it a couple months ago, what are you looking at now and what can you tell us technically about this market? >> bitcoin has fallen because people realize there are so many different choices out there and there's an unlimited supply of new coins. the amount of demand for it is eventually going to dry up just as happened with tulips and everything else. the but the stock market is going to persist and go on because the stock market represents things that are real. i'm still looking for a top