CHARLES: DAYS AFTER PRESIDENT
TRUMP BLAMED THE STOCK MARKET
RECENT TURMOIL ON THE FEDERAL
RESERVE, SPECIFICALLY JAY
POWELL, REPORTS BEGUN TO SURFACE
OF A POSSIBLE FACE-TO-FACE
MEETING BETWEEN THE TWO IN THE
VERY NEAR FUTURE.
I THINK THOSE REPORTS
CONTRIBUTED TO YESTERDAY'S HUGE
REVERSAL IN THIS MARKET.
THE QUESTION THOUGH, SHOULD
PRESIDENT TRUMP AND POWELL
ACTUALLY MEET?
TAKE A LISTEN WHAT WHITE HOUSE
ADVISOR KEVIN HASSETT TOLD FBN
LAST NIGHT.
>> YOU KNOW I'VE NOT BEEN
INVOLVED IN THOSE DISCUSSIONS
BUT I CAN SAY THAT I THINK IF
THEY DID MEET IT WOULD BE A VERY
FAVORABLE THING.
THAT THE TWO OF THEM ARE VERY
GREAT GUYS THAT WOULD GET ALONG
IF THEY WERE TO MEET AND TALK
THINGS THROUGH.
THE PRESIDENT LOVES TO LISTEN TO
REASON, TO ARGUMENTS, TO
ANALYSIS AND JAY DOES TOO.
SO I THINK THEY WOULD HAVE A
VERY PRODUCTIVE DINNER WHERE
THEY MEET.
RIGHT NOW I DON'T HAVE ANY NEWS
TO BREAK ON THAT.
CHARLES: WELL, LET'S BRING IN
OUR PANEL BECAUSE THEY DO.
JOINING US VISIONS FOUR FUND
VICE PRESIDENT, HEATHER
ZUMARRIAGA, LIDO ISLE MANAGING
PARTNER JASON ROTMAN.
HEATHER, START WITH YOU,
POTENTIAL MEETING, FEDERAL
RESERVE CHIEF, PRESIDENT TRUMP,
SHOULD IT BE TELEVISED?
>> TELEVISED?
YOU THREW A CURVEBALL IN THERE,
ONLY ON FOX BUSINESS, IF IT IS.
LOOK, IT IS NOT UNUSUAL IN THE
PAST FOR FED CHIEFS TO MEET WITH
PRESIDENTS.
FOR EXAMPLE, GREEN GREEN, WHO
SERVED AS FED CHAIR FOR OVER 20
YEARS MET WITH FOUR DIFFERENT
PRESIDENTS, CHARLES, BUT I DON'T
REALLY LIKE THE IDEA BECAUSE I
SUPPORT THE NOTION THAT THE IF
YOU HAD SHOULD REMAIN
INDEPENDENT, COMPLETELY
INDEPENDENT, HOWEVER, IF THE
PRESIDENT CALLS UPON A MEETING
WITH YOU YOU HAVE TO GO AND I
DON'T THINK IT WILL BE REALLY
HURT.
I EXPECT FED CHAIR POWELL TO
REMAIN INDEPENDENT AND SEPARATE
FROM ANY PRESSURE FROM THE
PRESIDENT RIGHT NOW.
CHARLES: JASON WHAT WOULD THE
MEETING, IN YOUR MIND WHAT WOULD
IT ENTAIL?
PRESIDENT TRUMP HAS MADE HIS
FEELINGS VERY APPARENT.
ALL YOU HAVE TO DO IS GO TO
TWITTER TO SEE WHAT HE WANTS BUT
WHAT WOULD CHAIRMAN POWELL SAY
TO THE WHITE HOUSE?
>> WHAT WOULD HE SAY?
HE WOULD SAY THE SECRET TO ANY
GREAT RELATIONSHIP IS LOW
INTEREST RATES.
ACTUALLY THAT IS TRUMP.
THE SECRET TO ANY GREAT
RELATIONSHIP IS COMMUNICATION.
SO I THINK IF THESE TWO
GENTLEMEN MEET, IT SHOULD BE
TELEVISED, WHY NOT?
PAY-PER-VIEW.
FUND THE DEFICIT, FUND THE WALL.
LET'S GET CREATIVE.
THE MEETING DOESN'T NECESSARILY
HAVE TO HAVE A SPECIFIC, YOU
KNOW, FIREWORKS AS A RESULT.
IT IS JUST OPENING LINES UP TO
UNDERSTAND EACH OTHER'S POINT OF
VIEW.
I THINK IT IS A BIG BENEFIT IN
THAT HAPPENS.
CHARLES: THERE IS NO DOUBT,
HEATHER.
THINK ABOUT THE BIGGEST DROPS,
SINGLE-DAY DROPS AND SINGLE-WEEK
DROPS, GOING BACK TO
FEBRUARY 2nd, WHEN THE
JANUARY JOBS REPORT WAS
ANNOUNCED, WAGES INCREASE 2.9%,
WALL STREET LOST ITS MIND.
DOW WAS OFF 366 POINTS.
OCTOBER 3rd, JAY POWELL
COMMENTS SENT THE MARKETS INTO A
TAILSPIN.
AND THE DOT PLOT, ESSENTIALLY
THE FEDERAL RESERVE DIDN'T CARE
WHAT THEY WERE SEEING IN THE
ECONOMY, DID NOT CARE WHAT THE
MARKET WAS SAYING.
THEY SEEM INTENT ON GOING
WITHOUT DATA AND THAT HAS SENT
THE MARKET INTO A TAILSPIN.
SO WE NEED SOMETHING FROM THE
FEDERAL RESERVE I THINK.
>> IT REALLY HAS BUT THEY HAVE
SOFTENED THEIR TONE SINCE THE
OCTOBER 3rd MEETING.
FED POWELL SAID THEY WOULD ADOPT
A WAIT-AND-SEE HE APPROACH.
CHARLES: THEN THEY CAME OUT WITH
THE DOT PLOT AND WE'LL STILL
HIKE RATES COUPLE TIMES A YEAR
ON TOP OF TAKING $50 BILLION
OUT.
ECONOMY EVERY MONTH.
>> WE HAVE 4 TRILLION-DOLLAR
BALANCE SHEET, YOU'RE RIGHT.
THEY WILL KEEP UNWINDING THAT.
WE'RE IN FOREIGN TERRITORY WITH
CENTRAL BANKS.
WE HAVE 4 TRILLION-DOLLAR
BALANCE SHEET IN THE U.S. IF WE
HAVE HEALTHY ECONOMY,
FUNDAMENTALS LOOK STRONG, EVEN
IF GDP IS SLOWING TO 2 1/2%.
WE HAVE 3.4% ANNUAL GDP GROWTH.
THAT MAY WARRANT HIGHER INTEREST
RATES.
THEY MAY PAUSE A LITTLE BIT BUT
PATH IS HIGHER FOR INTEREST
RATES I THINK.
CHARLES: JASON, WE UNDERSTAND
THAT THE FED HAS A DUAL MANDATE
BUT, SEEMS LIKE THAT MANDATE HAS
BEEN, HAS MORPHED INTO THE
NOTION THEY MUST SLOW DOWN THE
ECONOMY AND I THINK THAT IS WHAT
PEOPLE HAVE A PROBLEM WITH.
PARTICULARLY FOLKS, MIDDLE-CLASS
AMERICANS, WHO HAVEN'T SEEN A
REAL PAY RAISE IN A DECADE,
GETTING A PIECE OF ACTION,
SEEING JOBS, WAGES GOING UP.
WHY SLOW DOWN THIS ECONOMY.
>> I AGREE.
YOU ACTUALLY TOOK THE WORDS OUT
OF MY MOUTH, YOU READ MY MIND.
I WAS BRINGING OUT THE DUAL
MANDATE AS WELL, CHARLES,
MAXIMUM EMPLOYMENT, PRICE
STABILITY.
IF IT IS NOT BROKE WHY TRY TO
FIX IT?
THAT IS HOW I FEEL THAT DECEMBER
INCREASE FALLS UNDER THAT
CATEGORY.
LISTEN, THINGS ARE NOT BREAK.
THE MARKET'S OKAY.
WHY HIKE RATES AGAIN?
I DISAGREE WITH THE OTHER
PANELIST COMMENT THAT RATES PATH
IS HIGHER.
IF YOU LOOK WHAT THE MARKETS,
FED FUNDS RATE IS ACTUALLY
PREDICTING THERE WILL NOT BE AN
INTEREST RATE NEXT YEAR.
CHARLES: HEATHER, LAST WORD.
>> THAT'S FINE.
I DON'T THINK A RECESSION IS
LIKELY BUT THE U.S. ECONOMY MAY
SLOW, BUT LOOK, WE'VE HAD NINE
YEARS OF MASSIVE EASING MONETARY
SUPPLY, NEAR ZERO INTEREST
RATES, I THINK THAT SHOULDN'T
HAVE BEEN DONE.
SURE THE TIMING OF IT MAY NOT,
IT MAY NOT BE GOOD TIMING RIGHT
NOW TO RAISE INTEREST RATES.
IT HAS BEEN NINE YEARS.
CHARLES: RIGHT.