i asked the head of the cea kevin hassett what is it with the 3% projection? he made a multilayered argument saying listen, it is better than the obama years, moving ahead of that, but also he said when you get a gdp number for the course of a year, it's for ratings, one might have a 2 in front of it, one might have a 4 in front of it, mix it together you get the 3% number, in line with the report that have been put out for decades for the prior decades. either way, it's somewhat fair to say, liz, either dialed back expectations or reality check from the top economic adviser who at least wants to put a conservative face on it in case they end up exceeding expectations and going above that 3% level. we'll see. as far as the story at the white house, it is, of course the focus, the national conversation on how to keep schools safe? president trump hosting yet another listening session today. this time with state and local officials, and the president made clear he is very open to the idea of having some teachers, teachers that he says are adept at having firearm

we didn't see kevin hassett brag about it. but, he has a lot of credibility right now, because last may, his team put out an economic forecast for 2017, they said it would be 2.3%. real gdp growth. that is exactly what the commerce department said last month. so, i think right now, not just looking at history, but also looking at his recent forecast, he is someone who certainly has better early track record than the team that preceded him. trish: what about track record versus the fed? >> that is the big question now. is, rates are coming up. the fed out. the fed obviously agrees with him that we are moving to a faster plane of economic growth. are they going to raise rates to match that it disrupts that growth? i don't think so. certainly, that it's been a concern of the market. i guess you'd have to say today people are comfortable. trish: what were you guys do if we get an economy that is growing 4%, 5%. we've got wages that are growing 3% and if we've got a stock markets enough around 25,000. >> he can certainly claim vict

that is david westin and kevin hassett. coming up, bain capital jonathan lavine will talk volatility and spain's recent real estate deal. this is bloomberg. ♪ ♪ mark: live from london, i am mark barton. vonnie: i am vonnie quinn and this is the european close on bloomberg markets. let's get to the biggest business stories in the news. the biggest private employer in the united kingdom facing a case that could cost billions. -- says theyt underpay its mostly female store staff. they say more than 200,000 workers could be entitled to compensation. tesco says it has not seen the complaint. carlyle group posted for quarter profit that beat estimates. their energy portfolios gained and they ended the year well on the way to a four-year goal of raising $100 billion. maybe in a galaxy far, far away, star wars toys are sellers. not on earth with toymaker hasbro says fourth-quarter revenue fell and missed estimates. they blame the bankruptcy of toys "r" us and sluggish sales of "star wars" merchandise. i guess everyone already h

. >>> up next, is kevin hassett. he spoke at georgetown's law center for economic law. >> it is my pleasure to introduce our lunch speaker, kevin hassett. many of you may know kevin. he is currently chairman of the council of economic advisers and before that, was a senior ekeehn mist. held the james q. wilson chair m american culture and politics at the american enterprise institute. aei, where he was one of the leading thinkers there. and before joining aei, kevin was senior economist at federal reserve board. now any of you who know kevin or have seen him speak know he is a clear thinker, a straight talker, and says what he thinks. and he is, i think, serving the administration, the country extraordinarily well. the format we're going to used to is question and answer. i will lead off with a question or two for kevin. and he has been kind enough to be willing to accept questions from the audience. he has hard stop at 1:30. let's keep that in mind. let's have a round of place for our panelists this morning, first.

we are taking a live to hear from the chair of economic advisers counsel kevin hassett. live coverage here on c-span. mr. hassett: the james

. >> next, the chair of the white house council of economic advisers kevin hassett. this is 40 minutes. >> before joining, he was a senior economist at the federal reserve board. any of you who know kevin or

we will speak with the author of that report, kevin hassett. this is bloomberg. ♪ alix: this is "bloomberg daybreak." i'm alix steel. it is a slight risk off field but u.s. equity futures are trying to tread into positive territory. european stocks not getting much help after data disappointed. in other asset classes, it is buy the long end of the curve. u.s. yields down by four basis points. dollar-yen getting hit hard as the yen surges. potentially a safe haven bid. initial jobless claims coming in, no surprise, solid. 222,000. story, questions on inflation, solid job market at full employment. it was the conversation yesterday at the feds meeting for january. no real surprise for the markets. buying on the long end of the curve, mixed dollar, u.s. equities trying to eke out a gain in the premarket. david: coming up, jobs numbers. the white house yesterday released the economic report, underscoring the administrations progrowth policy. according to the report, the u.s. could grow at 3% for the next decade in donald trump's policies are conn

kevin hassett has the story rig right. they're estimating $4,000 higher after-tax income for working people share buybacks, first of all, investment projects are roaring. we're on the front end of the biggest investment boom in 20 years. last point on share buybacks, i don't understand, why are they bad? here's the benefits. >> come on, you know why they're bad. they're not bad but isn't there something better they should use that money for than buying back their own shares >> they're not investments. >> rallied 40%. >> the shares go from the sort of corporate lockbox into hands of ordinary investors who will probably invest the money more wisely that money may go into new investments. share buybacks raise prices of stocks, if you buy that view you've got 54 million people who own 401(k)s, 12 million people who own education savings accounts, and 43 million who own i.r.a.s. that's 109 million people who will benefit in their 401(k)s, et cetera, by share buybacks and, because i know this interests jared, labor unions, parti

hassett, chairman of the council of economic advisers. kevin will make a brief statement and to answer questions on the economic report then i will be back to take your questions on the news of the day. with that, i give it to kevin. >> thank you. it's a dar

house council of economic advisers kevin hassett. this is 40 minutes. >> before joining, he was a senior economist at the federal reserve board. any of you who know kevin or have seen him speak know that he is a clear thinker, a straight talker, and says what he thinks. he is, i think, serving the administration and the country extraordinarily well. the format we are going to use today is question-and-answer. i'm going to lead off with a question or two for kevin and then he's kind enough to be willing to accept questions from the audience. he has a hard stop at 1:30 p.m. so let's keep that in mind. please join me in a round of applause for our panelist this morning. [applause] whether it's charlie rose or david rubenstein, don't want to talk about that. let me start, kevin, with a very broad question. on the recent tax reform bill. what in your view are the three most important changes that that bill accomplished? mr. hassett: thanks so much and let me begin by thanking john for his leadership for all these years. i think it might'v

kevin hassett is the chair of the council of economic advisers. he will be talking about the corporate tax rate at georgetown university law school at 12:45 p.m. eastern on c-span. rose mcgowan will talk about her and her on c-span2 experiences working in the entertainment industry, live at 7:00 p.m.. >> earlier today, president traveled to west virginia to address legislators at the republican congressional retreat. clark's father, thank you for the way you provide for us and our nation. each day, we can count on your hand. you provide our daily bread. we provide for us in ways can never, ever thank you enough for. we want to stop for a moment and say thank you. us theou for allowing privilege for being able to serve, for giving us the attitude of servants. we pray you pour onto west what you spoke to jeremiah when you , not if you utter worthy worthless words, you will be my spokesman. i pray you give us were the words to speak to a nation that needs encouragement right now. i pay for our president and the vice president and their teams. i pray

hassett, chairman of the council of economic advisers. kevin will make a brief statement and to answer questions on the economic report then i will be back to take your questions on the news of the day. with that, i give it to kevin. >> thank you. it's a dark very day and i heard white house press corps was a little depressed so i said let's do economics and cheer everybody out. digging around the chairman's office i noticed that on my bookshelf there was a copy of the first economic report of the president from 1947 and harry truman in it said this. he said the economic report is an opportunity for national self-examination in some criticism. it's a challenge to the president and the congress to determine the causes of whatever problems we face in our economic life. in find a solution to those problems. that is what we endeavor to do at the council of economic advisers. and what we endeavor to this report that came out yesterday. we reached the president on it yesterday 11:30 in the oval office and i encourage all of you to read it becau

. >>> when we come back at the top of the hour, the council of economic advisers chairman kevin hassett will join us to talk about what he sees happening in the economy and react to what he's seeing in the market. futures down 520 points for the dow right w.no s&p off 45 "squawk box" will be right back. s with signs of opportunity. but with opportunity comes risk. and to manage this risk, the world turns to cme group. we help farmers lock in future prices, banks manage interest rate changes and airlines hedge fuel costs. all so they can manage their risks and move forward. it's simply a matter of following the signs. they all lead here. cme group - how the world advances. and i recently had hi, ia heart attack. it changed my life. but i'm a survivor. after my heart attack, my doctor prescribed brilinta. it's for people who have been hospitalized for a heart attack. brilinta is taken with a low-dose aspirin. no more than 100 milligrams as it affects how well brilinta works. brilinta helps keep platelets from sticking together and forming a clot. in a clinical study, brilinta worked bette

kevin hassett, the white house chief economist, doesn't expect the economy to overheat. >> we have a supply side stimulus which will allow us to grow without getting inflation out of control >> reporter: the federal reserves plans to raise interest rates gradually for this year and next the markets treating the minutes from this fed meeting, the first of eight this year, as tea leaves for the new fed's direction. investors will get more information next week. jay powell will be testifying in front of congress twice. >> i think jay powell will have to establish his credentials as a new fed chair. part of that is to say something pretty negative about the amount of fiscal expansion here and express worries about the rise in the federal budget deficit. >> reporter: the january meeting took place before a bipartisan budget deal expanded spending and before a january jobs report with wage growth so strong it spooked the market, spurring a sharp drop in stocks days earlier fed members found signs of broad wage growth to be absent, keeping the wait and see approach to inflation intact >> in

david: that was kevin hassett. shery: coming up tomorrow, exclusive interviews with two fed presidents. 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, bu

kevin hassett will join us with reaction from the white house. not only what the white house is thinking about this and is there anything in the economy that would be pointing to this? kevin o'leary is with us for three hours, mike santoli, dom chu will be here as well >> becky, thank you very much for that that futures market picture, down 430 we're back here on "worldwide exan" thchgewi much more analysis in a couple minutes your brain is an amazing thing. but as you get older, it naturally begins to change, causing a lack of sharpness, or even trouble with recall. thankfully, the breakthrough in prevagen helps your brain and actually improves memory. the secret is an ingredient originally discovered... in jellyfish. in clinical trials, prevagen has been shown to improve short-term memory. prevagen. the name to remember. >>> welcome back to "worldwide exchange." futures pointing significantly lower again today. 450 points on the dow. we were down as much as 650 points about a half hour ago so we've improved a bit. the s&p is down 30 points. the

in the afternoon, the chairman of the council of economic advisers kevin hassett will talk about u.s. corporate tax rate changes. live coverage from georgetown's institute of international economic law begins at 12:45 eastern, also on c-span. >>> the weekend, the c-span cities tour takes you to fayetteville, arkansas, located in the ozark mountains, it's home to the university of arkansas and the clinton house museum. the first home of bill and bill clinton. with the help of our cox communications cable partners, we'll explore fayetteville's rich literary life and history. we'll visit the special collection at the university of arkansas libraries where we'll hear about senator fullbright's 30 years career in the u.s. senate. >> he was remarkable in lots of ways, but he could talk to just about anybody. different political stripes. people across the aisle. people from different parts of the world. so this is a democratic leader, of course, fullbright here meeting with the republican president and the future republican president, george h.w. bush, all here together watching texas unfort

. >> outfront now kevin hassett chairman of the economic advisers. thanks very much for being back with me, chairman, i appreciate your time. >> great to be here. >> the dow up after the plunge yesterday. are you feeling better? >> well, i think that our job at the cea especially is to focus on long-term economies. that's are strong. i don't think anybody that can successfully predict ups and downs of the market. but we've been monitoring the situation closely. we've been in constant contact with regulators. today was good for investors. but it's strong. and right now looking ahead to wage group, economic fundamentals which are as strong as we have seen in more than a decade. >> i want to talk about this. but part of this is such a big story of course that the president cares deeply about the stock market and talks about it all the time. i have talked to someone frequently and i have told him not to talk about the stock market and brag about it. obviously the president has chosen not to do that according to "the new york times" he bragds about the st

. >> earlier today, kevin hassette of the white house said while he can't get inside the mind of the market, he did talk about fundamentals in our economy. let's listen to that. >> what set off the last couple of days clearly is the very strong economic data which shows that our analysis of the economic data is really correct. the data is so strong that clearly markets are starting to worry about fed policy. growth has headed back towards normal. normal involves a lot of other things too. i think what we're seeing is interest rates seem to be moving back to normal as well. >> okay. then if hassette is right and it was good news that set this off but fear of missing out is what revved up the markets so high, what should people be focused on today? brendan greely? >> they should be focused on actually what hassette says. in the midst of all the noise in the markets, we got really good data from purchasing managerings. basically what this says is all over the world people who make real decisions in businesses are very confident they're going to have things to buy and sell very soon in t

i'm joined by one of the men behind the report, kevin hassett, chairman of the counsel of economic advisers. good to see you. thank you for being with us. >> and thank you. it is 80 degrees here. >> and that is why you are so willing to be out with me today and hang out. listen, there are a lot of moving parts, it is a thorough report for the purposes of this conversation, i want to just focus on labor because as we've often discussed, that is the thing that hits most people. something out of your report, it says, quote, as we knew when we set out to reform taxes and rein in the regular tor state and they will expand operations and invest more in plant and equipment which raises workers productivity and raises wages. now this is a conversation you and i had before the tax cuts and this was the argument that you and the president and others put forward. that if you have corporate tax cuts it will result in an increase of wages. i think you stated about $4,000 a house hold. >> $4,000 over three to five years. >> for our viewers, explain that. where do you think that comes from? >> so what hap

was kevin hassett at the white house press briefing. he was asked about current market volatility. he says that is normal, it should be expected. he says the dollar policy has been unchanged under this administration. -- steveuestions asked mnuchin talked about the economy. he said if the economy can get to 3% growth without boosting inflation -- wages can rise as well. honestly, the most interesting thing is the u.s. economy can get to 3% growth without inflation -- how much is this doing a wink wink, nod nod to the federal reserve saying inflation isn't going to pick up even with this boost, so you don't have to go too fast with respect to raising interest rates and stymieing this growth? julia: he did say without boosting inflation much. michelle was saying that she expects growth at 2.9% this year, three hikes this year, from the federal reserve. the administration is taking a look and then they can hike next year. >> definitely an interesting conversation. >> a quick check on the markets for a sense of how we are looking here. chart, you the session some of the movements we ar

to dig into the details, kevin hassett, chairman of the counsel of economic advisers will make a brief statement and answer your questions on the economic report. then i'll be back to take your questions on the did news of the day. with that, i'll give it to kevin. >> thanks a lot, raj. it's a dark, dreary day. i heard the white house press corps was a little depressed. i said let's do some economics and cheer everybody up. digging around the chairman's office on my book shelf was a copy of the first report from 1947 and harry truman said this. the economic report is an opportunity for national self examination and self criticism. it's a challenge to the president and congress to determine the causes of whatever problems we face in our economic life and find the solutions of those problems. that's what we endeavor to do at the counsel of economic advisers and what we endeavored to do with this report that came out yesterday. we briefed the president on it yesterday at 11:30 in the oval office. i encourage everybody to read it. it's a scintillating read. eight chapters in the report. th

kevin hassett is the chair of the council of economic advisers. he will be talking about the corporate tax rate at georgetown university law school at 12:45 p.m. eastern on c-span. rose mcgowan will talk about her and her on c-span2 experiences working in the entertainment industry, live at 7:00 p.m..

coming up later today on bloomberg markets, kevin hassett, chairman of the white house council of economic advisers. now to your bloomberg business flash. at&t says it is exploring a possible ipo of its minority interest in directv's latin american unit. the company filed a registration statement but there is no assurance at&t will tech -- take the state public. is signaling that they will be increasing on investing in startups such as uber. plans for ailed telecom operation in japan that would separate soft take into investing and telecommunication units. carlyle group posted fourth-quarter profits that beats estimates. the firm's holdings gained. well on ended the year its way toward a for him in your of raising $100 billion. that is your bloomberg business flash. david: friday's jobs numbers show the strongest wage growth we have had since the recession with the january average hourly earnings raising 2.9% from last year. gary cohn told us it is still something the white house is keeping its eye on. >> we are excited to see it this month, we do hope it is sustainable, we don't want to s

when you talk to people like kevin hassett and folks in the trump economic department, they would much rather have spent additional money on infrastructure which could boost productivity and we could have noninflationary growth, but this is the price you have to pay in a divided congress -- not divided congress, but in a congress where the art of the doable in a 51-49 senate requires you to spend an awful lot on nondefense discretionary spending once they got 60 votes cleared in the senate, they threw everything on it >> we heard from the president saying there might be a phase two of tax reform. does that have legs? was that just rhetoric from the white house? is there substance behind that maybe they would like to do more on the individual side when the president came in, the last year of deficit for the obama administration was 5$550 billion range. for fiscal 2017, it was 666 billion. the projections would be that the deficit would not hit the trillion dollar mark until 2022. there's a good chance now we'll hit it in 2018 certainly by 2019. i think you'll have a quick pivot to the q

. >> i think they are exceptionally pessimistic if you want the honest an kevin hassett one of the finest people i know great economist works for government means employee so he can't say what he probably really believes, i would guess secretly with a little you know old-fashioned or something would tell us that he thinks growth rates could be much higher than thatp under kennedy over 5% under reagan after tax cuts took affect well over 5% 6 1/2 years come on these types of ubs in are not impossible, you no would i be happy with 3% growth over decade, sure i would be i think there is a good chance it will be higher than that. >> good chance hire than that when? >> over next decade. >> okay. all right. >> i think you know, i think the growth over the last two presidents, obama, w, obama, bad presidents from standpoint of the economy, and we can offset that get back to real growth in america. productivity 3.2% when clinton left office zero when obama left office yikes! you can't do better than that maria come on. maria: thank you, great to talk to you. >> thank you very much really fun to s

kevin hassett spoke about the volatility yesterday. >> stock market volatility is something that's to be expected. it's a regular thing in the stock market. it tends to go up when the market has gone up a lot as it has in response to our policies. i don't think it's anything unusual or something for people to be concerned about. the dollar policy has not changed. you get more capital spending when you cut the tax rate and that increases supply. >> maria: in europe this morning stocks are searching for direction a bit. dax index is higher, up a quarter of a percent this morning. in asia overnight green across the board. best performers were in asia with korea up 1.5%, hong kong up almost 1%. still cashing in on the crypto craze, bitcoin has bonessed back anbounced backand digital curren the rise. a friend to russia, how the country reportedly exploited a loophole on facebook to meddle in u.s. politics. spacex is sending their first broad band satellite into space. we'll have details. caterpillar gets into the smartphone business with a seriously rugged device that costs as much as an i

they were gaga about the tax cuts they were gaga about the deregulation efforts kevin hassett yesterday on the show, we talked about these quote, unquote, stimulus measures he said how could good news be bad news is this a good news/bad news story or do you think there is something else going on here >> i think david's a very good macro economist. i think, look, you just had a stimulus to the economy at a point in time where the labor markets are pretty tight, right? >> with the tax cut you mean >> with the tax cut. >> yeah. >> and to think that if we're going to have a strong economy that interest rates are not going up, that's a dream that's a dream. >> yeah. >> no, i think that's right and i think the market hasn't come to terms with this yet the market is pricing in 2 1/2 hu hikes for this year. i think there's still a reckoning that has to occur. you've seen that the economy can't necessarily grow as quickly as people believe it can and the fourth quarter gdp data you had a significant deterioration in the trade imbalance and you also had a rundown in inventories so while you had s

let me start, kevin, with a very broad question. the recent tax reform bill -- what in your view are the three most important changes that that bill accomplished? mr. hassett: thanks so much and let me begin by thanking john for his leadership for all these years. i think it might've been that i wrote a paper for the very first meeting, but if it wasn't the first, it was the second. mr. samuels: we take credit for your career. mr. hassett: four could be the other way around. it's because of that first paper. anyway i think it has become a highlight of the washington tax community every year because you bring in even people from oxford to come help us think about average tax rates. we have learned so much. i know that there are probably diverse opinions about the nuances of the international tax rules in the tax bill in this room. i think there are a heck of a lot of good things in the tax bill that go to the research over the years, nonpartisan economic research with the best tax economist in the world. it's really an honor to be he