CHERYL: WHAT A FIGHT.
THAT IS REALLY INTERESTING.
WILLIAM LA JEUNESSE OUT IN
LOS ANGELES.
WILLIAM, THANK YOU VERY MUCH FOR
YOUR MARKETS RIGHT NOW.
GOING DOWN THIS TRAIN RIGHT NOW,
THIS POSITIVE ONE, THE MARKET
WILL HIT A MAJOR MILESTONE THIS
WEEK.
IT WILL BE THE LONGEST RUNNING
BULL MARKET EVER.
LONGER THAN THE DOT-COM ONE.
YOU REMEMBER THAT ONE?
THIS IS WHILE PRESIDENT TRUMP
COMPLAINED ABOUT FED CHAIRMAN
JEROME POWELL HIKING INTEREST
RATES DURING A HAMPTONS
FUND-RAISER.
THE FEDERAL RESERVE RAISED RATES
FIVE TIMES SINCE TRUMP TOOK
OFFICE.
THE TWO HIKES THIS YEAR WERE
UNDERPOWELL.
KRISTINA PARTSINEVELOS IS HERE
WITH ME ON SET.
"WALL STREET JOURNAL" CHIEF
>> GREAT TO BE HERE.
CHERYL: JON, YOU KNOW THE FED.
OUT OF THE ORDINARY FOR A
PRESIDENT TO COMMENT ON PUBLICLY
OR PRIVATELY FOR A FED'S
DECISIONS.
DONE JOHNSON, GEORGE H.W. BUSH.
THERE WAS CONFLICT BETWEEN THE
PRESIDENT, WHITE HOUSE AND THE
FED.
SINCE CLINTON, THE POLICY HAS
BEEN KEEP YOUR HANDS ON WHAT THE
CENTRAL BANK AND ACT
INDEPENDENTLY.
WHAT PRESIDENT TRUMP HAS BEEN
DOING ON TWITTER SEVERAL WEEKS
AGO, MORE RECENTLY AT THE
HAMPTON'S FUND-RAISER IS START
TO QUESTION WHAT JAY POWELL IS
RAISING SHORT-TERM INTEREST
RATES IS GOING TO SLOW DOWN AN
ECONOMY GOING PRETTY FAST RIGHT
NOW.
AND, THIS FRUSTRATION, WHAT
WE'RE HEARING IS REALLY BUILDING
IN THE PRESIDENT' EYES.
CHERYL: INTERESTING YOU'RE
HEARING THAT AS WELL.
KRISTINA, THIS BULL MARKET, NINE
YEARS,.
DOES THE PRESIDENT REALLY HAVE A
POINT, RATE HIKES ARE GOING TO
BE A RISK?
>> IT IS LONGEST BUT DEFINITELY
NOT THE STRONGEST EXPANSION
WE'RE SEEING SO FAR.
THERE HOWEVER COULD BE REASONS
WHY HE IS SAYING THIS.
YOU HAVE ELECTIONS COMING UP.
HAMPTONS.
HE RAISED ACCORDING TO REPORTS,
$3 MILLION.
HE COULD BE SPEAKING TO THE FED.
THE FED IS SUPPOSED TO ACT
INDEPENDENTLY.
JAY POWELL, DID NPR, ONLY
BROADCAST INTERVIEW WITH THEM.
INDEPENDENTLY.
BUT I DO BELIEVE THEY'RE ACTING
MUCH SLOWER THAN OTHER FEDS HAVE
IN THE PAST.
INTEREST RATES ARE HISTORICALLY
LOW, ESPECIALLY GIVEN THE
UNEMPLOYMENT RATE.
THERE IS IT AN OPPORTUNITY FOR
THEM TO GO HIGHER.
THEY HISTORICALLY HAVE BEEN
HIRE.
THAT IS WHEN THE RED FLAGS WILL
START TO ARISE, GIVEN HIGH LEVEL
OF CORPORATE DEBT.
GIVEN HIGH LEVEL OF GOVERNMENT
IS WORRIED ABOUT RISK TO THE
BULL MARKET OR ECONOMY, TARIFFS
MIGHT BE A RISK TO THE ECONOMY.
ECONOMY.
THESE TARIFFS COULD BE
INCREDIBLY DANGEROUS.
THEY DIDN'T WORK IN THE REAGAN
YEARS.
THEY MAY NOT WORK NOW.
>> HE CAN NOT REALLY COMPLAIN
ABOUT THAT BUT HE CAN DO
THIS YEAR.
LOOKS LIKE THE ECONOMY WE'LL
HAVE ONE OF OUR BEST YEARS IN,
IN TERMS OF GROWTH OF THIS
EXPANSION, BUT IF YOU LOOK OUT
TO 2019, 20 TO, HIS RE-ELECTION
YEAR, THE CONCERN IS, THE FED
HIKES RATES SO MUCH, WE REALLY
GET A SLOWER ECONOMY.
THEN THE PRESIDENT'S QUESTION,
WHO DO YOU BLAME?
LOOKS LIKE HE IS KIND OF SETTING
THE FED UP TO BLAME THE FED IF
THIS GROWTH DOESN'T THROUGH.
CHERYL: I THINK YOU AND KRISTINA
AGREE ON THAT.
POINT THAT IS VERY, VERY TRUE.
TALK ABOUT TRILLION DOLLAR
THESE COMPANIES ARE BENEFITING
FROM TAX CUTS AND BENEFITING
FROM THE STRONG MARKETS IN
GENERAL.
>> THESE HISTORICAL LEVELS AND
NEW PEAKS WE HAVEN'T SEEN IN THE
PAST.
WE CAN'T USE THIS POSSIBLY
LONGEST BULL MARKET AS, YOU
KNOW, LET'S REFER BACK TO
CORPORATIONS, THE BIG THING, HOW
WILL WE IMPROVE PRODUCTIVITY AND
WAGE GROWTH?
AND THE FED HAS BROUGHT UP FULL
EMPLOYMENT.
I THINK REALLY WE SHOULD TALK
ABOUT UNDEREMPLOYMENT.
THOSE ARE THE PEOPLE THAT WANT
BETTER QUALITY JOBS BUT ARE
STUCK IN THESE PART-TIME JOBS OR
OVERQUALIFIED.
THAT IS AN AREA ACTUALLY NEVER
SEEMS TO COME UP BECAUSE IT IS
KIND OF COMPLICATED WHEN YOU ARE
USING TERMS LIKE THAT.
GIVEN WAGE GROWTH, NOT CLIMBING
HIGHER, INFLATION ISN'T GOING AS
HIGH AS WE THOUGHT IT WOULD.
HIKES THIS YEAR.
CHERYL: JON, HER POINT IS
WELL-TAKEN.
THE WE TALKED ABOUT THE FACT
WAGES ARE NOT KEEPING UP IN
OTHER REBOUNDS AND BULL RUNS
WE'VE SEEN, WAGES ARE MUCH
HIGHER THAN THEY ARE RIGHT NOW.
>> ONE.
REAL ISSUES WITH WAGES RIGHT NOW
THEY'RE NOT KEEPING UP WITH
IT HAS CREPT UP TO THE 3%.
IT IS NOT AS FAST AS IN PAST
EXPANSIONS BUT IT HAS CREPT UP.
THE INFLATION IS RISING EVEN
FASTER RIGHT NOW.
THE FED NEEDS TO BE RAISING
INTEREST RATES.
BECAUSE IT DOESN'T WANT THE
ECONOMY TO OVERHEAT AND ALLOW
IF THE FEDERAL LOUSE INTEREST
RATES TO STAY LOW AND ECONOMY TO
THEY DO RIGHT NOW BECAUSE,