AstraZeneca may be able to help.
CHARLES: WHITE HOUSE ECONOMISTS
BOASTING THE RSH'S TKS CUT, AND
INFRASTRUCTURE PLAN AND TRADE
TOLL I CAN RETURN OUR NATION TO
ECONOMIC GROWTH 3% ANNUALLY.
THE PRESIDENT STATED THE
ECONOMIC REPORT SHOWS A PATH FOR
GROWTH AND CONTINUED GROWTH.
WE SAW A SPIKE IN YIELDS.
THE MARKET STUMBLED AND WE SORT
OF FELL APART TO THE CLOSE.
GET USED TO IT.
FRANCIS, LET ME START WITH YOU.
OVERALL ECONOMY.
ULTIMATELY TAX REFORM CAN RESULT
IN AN EXTRA $4,000 FOR EACH
HOUSEHOLD AND EACH INDIVIDUAL.
DO YOU SEE THEM BEING
ATTAINABLE?
>> SURE.
IF THEY ARE ATTAINABLE THAT'S
GREAT.
BUT THEY WOULD BE SHORT-LIVED IF
THE FED CONTINUES TO TIGHTEN TOO
AGGRESSIVELY.
THEIR MINIMUM PAYMENTS ON THEIR
CREDIT CARDS AND SOME OF THEIR
ADJUSTABLE RATE MORT GAUGES ARE
ALSO GOING UP.
THAT'S THE PROBLEM WITH INTEREST
RATES GOING HIGHER.
THE FED IS REDUCING THE MONEY
SUPPLY AS TRUMP IS TRYING TO
INCREASE THE MONEY SUPPLY WITH
POLICY.
THERE IS EMPIRICAL DATA THAT
SHOWS STOCK MARKET RETURNS
FATHER WHEN THE DISCOUNT RATE
AND THE FED FUND RATES GO UP
SIMULTANEOUSLY.
CHARLES: PAUL, WE HAD 8 YEARS
WHERE THE FED COMPLAINED IT WAS
ALL MONETARY POLICY.
SO THEY DID ALL THE HEAVY
LIFTING TO KEEP THIS ECONOMY
FROM CRATERING.
NOW THE FACT THAT THEY WILL TURN
ON A DIME AND SQUASH AN ECONOMY
THAT'S FINALLY GROWING WET
AVERAGE PERSON HASN'T SEEN A
WAGE INCREASE IN A DECADE.
WHY WOULD THEY DO IT NOW?
>> THIS REPORT IS A VERY
SOPHISTICATED DOCUMENT.
ON THE POLICY REALM, IT LAYS OUT
VERY CLEARLY WHERE THIS
ADMINISTRATION WHICH HAS ONLY
GOTTEN INTO CRITICAL MASS IN THE
PAST 7 OR 8 MONTHS.
BUT IT LAYS OUT A MARKER.
THAT'S IMPORTANT FOR THE
CONFIDENCE OF THE CONSUMERS AND
INVESTMENT AND BUSINESS LEADERS.
IT LAYS OUT A PHILOSOPHICAL
INDICTMENT OF THE ELITISM OF THE
LEFT.
WHAT POLICIES YOU DON'T DO WHEN
AN ECONOMY IS DOWN AND A
WORKFORCE IS SUFFERING.
IT LAYS OUT CLEARLY FOR POLICY
AND POLITICAL WHERE THE TRAIN
WILL BE FOR 2018 AND 2020.
YOU HAVE THE PRESIDENT TALKING
ABOUT TAXES AND POLICY ISSUES.
AND SO WHEN YOU TAKE A LOOK AT
THIS, I THINK IT'S -- YOU KNOW,
IT'S DIFFICULT FOR FOLKS TO TRY
TO DISMISS THIS THING QUICKLY.
I THINK YOU HAVE TO TAKE A LOOK
AND SAY THIS WRITS APPARATUS IS
GOING -- THIS IS WHERE THE
APPARATUS IS GOING TO GO.
WE HAVE SEEN THE ECONOMY REACT
TO THIS.
IN JANUARY CLASS 8 TRUCK ORDERS
WERE UP 100% YEAR OVER YEAR.
THIS IS PUTTING MONEY TO WHERE
YOUR ENTHUSIASM IS.
>> THERE IS NOT ENOUGH BEING
SAID ABOUT THE ANIMAL SPIRIT.
THE NOTION THAT PSYCHOLOGY
IMPACTS.
THE MARKET HAS ZOOMED FORWARD.
YOU HAVE A COUPLE LITTLE BUMPS
RIGHT THERE.
CHARLES: ROUGH CONCERNED ABOUT
THE FED OVERREACTING?
>> ANY FEDERAL RESERVE FROM
BERNANKE ON, THIS FED WILL KILL
THIS GROWTH, ZERO.
>> I DISAGREE WITH THAT HEAVILY.
CHARLES: HOW MANY RATE HIKES
WOULD KILL THIS MARKET RALLY.
>> IT'S NOT THAT.
IT'S THE SIMULTANEOUS REDUCTION
IN THE BALANCE SHEET.
SO AS TRUMP IS ADDING TO THE
MONEY SUPPLY, THEY ARE REDUCING
THE AGGREGATE MONEY SUPPLY.
AS IT WEIGHS ON THE ECONOMY, IT
WILL WEIGH ON TAX REVENUE AND
THE ULTIMATE SUCCESS OF TAX
REFORM.
THAT'S THE WORST CASE SCENARIO,
AND IT WILL CAUSE EQUITIES TO
SELL OFF IT HAS DONE EVERY TIME
THEY HAVE DONE THIS IN HISTORY.
CHARLES: I WILL ASK ABOUT
VELOCITY OF MONEY AND HOUSEHOLD
DEBT.
I THINK CONSUMERS HAVE ROOM TO