THE EAST COAST OIL GOES UP.
MELISSA: THAT IS TRUE,.
DAVID: WHEN THERE IS BIG DEMAND
FOR GROWTH.
MELISSA: THAT'S TRUE.
DAVID: JEROME POWELL'S DID NOT
TRY TO RELATE TOO MUCH BUT HE
HAD CONCERNS ABOUT THE
WHITE HOUSE TRADE POLICY.
HERE IS ADAM SHAPIRO BUT WE HEAR
FROM THE FED CHAIRMAN FIRST.
>> A NUMBER OF PARTICIPANTS
REPORTED ABOUT CONVERSATIONS
WITH BUSINESS LEADERS AROUND THE
COUNTRY AND REPORTED THAT TRADE
POLICY HAS BECOME A CONCERN
GOING FORWARD.
DAVID: LET'S BRING IN TODAY'S
PANEL TO TALK ABOUT THIS.
JONATHAN HOENIG FROM CAPITALIST
PIG HEDGE FUND.
ALSO A FOX NEWS CONTRIBUTOR.
TODD HOROWITZ, HOST OF THE BUBBA
TRADING SHOW.
WE HAVE CHICAGO WELL REPRESENTED
TODAY.
DAN MITCHELL COFOUNDER OF CENTER
FOR FREEDOM AND PROSPERITY.
DAN, LET ME START WITH YOU.
THE MARKET KIND OF LOST ITS
TRIPLE DIGIT GAINS WHILE POWELL
WAS SPEAKING, SPECIFICALLY WHEN
HE REFERENCED THE TRADE TARIFFS,
A CONCERN THAT NUMBER OF
BUSINESSES HAVE ABOUT THE
INCREASING COSTS FROM THAT.
THAT IS THE NUMBER ONE CONCERN
POLICYMAKERS, ECONOMISTS HAVE
ABOUT THE ECONOMY.
IF TRUMP GETS INTO A TRADE WAR
LIKE THE 1930S THAT WOULDN'T BE
A GOOD THING T OFFSET GOOD NEWS
OF LOWER TAX BURDENS,
DEREGULATION, IN FACT THE FED, I
WILL GIVE THEM CREDIT THEY HAVE
DONE A PRETTY GOOD JOB TO TRY TO
BEGIN TO NORMALIZE MONETARY
POLICY BUT THE TRADE THING IS
SITTING OUT THERE LIKE A TICKING
TIME BOMB.
LET'S HOPE BE DEFUSES IT.
DAVID: I DON'T KNOW THAN, WE
HAVE PRETTY STRONG ECONOMY.
PHIL TALKING ABOUT THE DRAWDOWN
IN THE OIL AND GAS.
THE ECONOMY IS CHURNING ALONG.
IT NEEDS MORE ENERGY FOR
PRODUCTION.
THAT TO ME IS GREAT NEWS.
THE LAST TIME JEROME POWELL
SPOKE, HIS CONCERN OF AN
OVERHEATED ECONOMY.
THAT DOESN'T CONCERN ME WHEN
YOU'RE GROWING 2% FOR 10 YEARS I
COULD USE A LITTLE HEAT IN THE
ECONOMY.
WHAT?
>> INTERESTINGLY, DAVID, DOESN'T
SEE MUCH INDICATION OF INFLATION
LOOKING FORWARD.
NOT MUCH MORE THAN 2% IN TERMS
OF WHERE THE FED SEES INFLATION
GOING.
SO YOU HAVE MIXED SIGNALS ONCE
AGAIN.
PERHAPS THE FED INTENDED THAT
WAY.
WHAT I'M SEEING DEMONSTRABLE
SIGNS OF INFLATION.
THERE IS NO SUCH THING AS A FREE
LUNCH.
WE HAD ALMOST A DECADE OF
ARTIFICIALLY LOW INTEREST RATES,
DAVID.
WHETHER HIGHER COMMODITY PRICES
OR TAKE A LOOK AT 52 LOW LIST.
FULL OF BOND FUNDS, BOND ETFs.
PERHAPS THE MARKET SUGGESTIONS
THAT THE FED WILL NOT BE DONE
ACTUALLY WHEN IT SAYS IT WILL BE
DONE.
JUST AS IT WAS NOT DONE CUTTINGS
ON THE WAY DOWN AND GO THE OTHER
WAY UP.
DAVID: TALKING FOR YEARS ABOUT
OUR PROBLEMS WITH THESE
ARTIFICIAL RATES.
IT WAS KIND OF THE OBAMA WAY TO
STIMULATE THE MARKET BECAUSE HE
WASN'T STIMULATING BY RAISING
TAXES AND REGULATIONS.
RIGHT?
>> THAT'S TRUE.
DAVID: HOLD ON.
THIS IS FOR TODD.
GO AHEAD, TODD.
THANK YOU, JONATHAN.
TODD.
>> WELL I THINK WHAT YOU'RE
LOOKING AT HERE, DAVID, HOUDINI
WOULD BE ROLLING OVER IN HIS
GRAVE WITH THE MAGIC ACT POWELL
PULLED OFF GETTING DOLLAR KILLED
RATES REALLY UNCHANGED.
ALTHOUGH THEY RAISE RATES IN THE
UNITED STATES, GLOBALLY THE
PEOPLE BORROW FROM US WILL PAY
THE SAME RATE BECAUSE THE DOLLAR
GOT HAMMERED BECAUSE OF THIS
ANNOUNCEMENT.
THIS WAS MORE OF AN ILLUSION
FROM MY STANDPOINT AND THESE
RATES ARE STILL ARTIFICIAL.
I WANT TO KNOW WHEN WE START TO
TALK ABOUT THE DEBT.
WE STILL NEVER WANT TO ADDRESS
ALL THE DEBT PROPS WE HAVE OUT
HERE.
DAVID: NEVER I DON'T TARGETING
CHINESE TRADE, THE TRILLION
ADMINISTRATION TELLING LAWMAKERS
ON CAPITOL HILL TODAY THAT
ACTION IS NEEDED.
>> OUR VIEW WE HAVE A VERY
SERIOUS PROBLEM LOSING OUR
INTELLECTUAL PROPERTY, WHICH IS
THE BIGGEST SINGLE ADVANTAGE OF
THE AMERICAN ECONOMY.
WE ARE LOSING THAT TO CHINA WAYS
NOT REFLECTIVE OF UNDERLYING
ECONOMICS.
MELISSA: DAN, NOBODY PUSHED BACK
AGAINST THEM FOR A LONG TIME.
THEY HAVE BEEN STEALING
INTELLECTUAL PROPERTY.
THE TRADE IS NOT EVEN CLOSE TO
FREE AND FAIR.
EVERYTHING FROM THAT,
COUNTERFEIT GOOD COMING INTO THE
COUNTRY.
THERE ARE SOME THINGS.
>> THE TRUMP ADMINISTRATION I
THINK IS RIGHT TO BE CONCERNED
ABOUT IN EFFECT CRONYISM OR
MERCANTILISM IN THE CHINESE
ECONOMIC MODEL.
MY CONCERN THOUGH WE WOULD BE
MUCH BETTER SERVED GOING THROUGH
THE WTO OR HAVING A MULTILATERAL
APPROACH WITH THE EU AND JAPAN
WHO ARE CONCERNED ABOUT CHINESE
MISBEHAVIOR.
IF WE SIMPLY ACT UNILATERALLY,
ALL THAT HAPPENS CHINA DOES
TIT-FOR-TAT WITH US.
THEY START BUYING MORE PRODUCTS
FROM OTHER COUNTRIES.
SO THE UNILATERAL APPROACH I
THINK IS THE WRONG WAY TO
ADDRESS WHAT IS A REAL PROBLEM.
MELISSA: BUT, TODD, I MEAN WHEN
YOU WAIT FOR THE EUROPEANS TO
GET ON BOARD, THEY ARE
NOTORIOUSLY SOFT.
THEY'RE NEVER GOING TO STAND
TOUGH.
AND HOW MUCH OF THIS IS ABOUT
YOU KNOW, IS ACTUALLY ABOUT
NORTH KOREA?
WE'RE GOING TO BE TOUGH ON TRADE
AND BY THE WAY THE ELEPHANT IN
THE ROOM IS, YOU'RE SUPPORT OF
NORTH KOREA AS WELL?
>> MELISSA I THINK IT IS ABOUT
TIME WE GOT TOUGH AND WE FORGOT
ABOUT WHAT EVERYBODY ELSE WANTS
TO TRY TO NEGOTIATE THESE DEALS
THAT WILL TAKE FOREVER.
THIS IS LIKE GETTING A BUILDING
PERMIT TO BUILD A BRIDGE 10
YEARS.
LET'S GO AT IT, GO AFTER THEM.
EITHER THEY COME BACK HEY, WE
WILL WORK ON A DEAL OR STAND ON
OTHER SIDE.
THIS IS NOT SMOOT-HAWLEY, THIS
IS DONALD TRUMP TAKING CHARGE
AND FLEXING UNITED STATES
MUSCLES.
MELISSA: JONATHAN?
>> I JUST HATE TO SEE POLITICAL
POWER AND ECONOMIC POWER,
MELISSA GET MIXED.
DEALS ARE ABOUT FIGHTING
NORTH KOREA GET MIXED WITH DEALS
ABOUT US BEING ABLE TO BUY A
SOUTH KOREAN WASHING MACHINE OR
A TV MADE IN JAPAN FOR THAT
MATTER.
FREE TRADE IS BENEFICIAL.
THE PRESIDENT DOESN'T BELIEVE
THIS.
I DON'T THINK HE UNDERSTANDS IT
IS WIN-WIN.
THE MORE FREE TRADE WE HAVE
BETTER OF AN ECONOMY WE HAVE.
THAT IS THE FOUNDATION WHICH HIS
POLICY SHOULD STAND.
NOT MICROMANAGING EVERY SINGLE
TRADE EVERY AMERICAN WANTS TO
MAKE.
MELISSA: THANKS, GUYS.