CONNELL: PRESIDENT TRUMP ONCE
AGAIN BLASTING, OR AT LEAST
TRYING TO INFLUENCE THE FEDERAL
RESERVE AHEAD OF THE RATE
DECISION THAT WILL BE ANNOUNCED
TOMORROW WARNING THEM TO NOT
MAKE ANOTHER MISTAKE AS HE PUT
IT.
MOMENTS AGO SARAH SANDERS
ANSWERED A QUESTION FROM OUR OWN
BLAKE BURMAN ON THE TOPIC?
>> IS HE VENTING AT THIS POINT
OR GENUINELY WORRIED IF THERE IS
RATE HIKE TOMORROW THE ECONOMY
WILL SLOW DOWN?
>> THE PRESIDENT IS STATING HIS
OPINION WHICH HE IS PERFECTLY
WITHIN HIS RIGHT TO DO SO.
I THINK THAT IS ONE OF THE
REASONS PEOPLE LIKE HIM IS
BECAUSE HE DOES THAT, HE DOES IT
REGULARLY.
HE HAS BEEN VERY CLEAR ABOUT
WHAT HIS POSITION IS, WHILE AT
THE SAME TIME, HE UNDERSTANDS
THAT THE FED IS AN INDEPENDENT
AGENCY.
THAT DOESN'T TAKE AWAY THE
PRESIDENT'S RIGHT TO STATE HIS
OPINION ON A PARTICULAR MATTER.
>> LET ME ASK YOU --
CONNELL: HE CERTAINLY DID SO IN
HIS TWEET EARLIER TODAY.
THE PRESIDENT IN STATING HIS
OPINION POINTED PEOPLE TO THE
OPINION PAGE OF OF
"THE WALL STREET JOURNAL."
YOU SHOULD FOLLOW PRUDENT PAUSE
OF IN RATES THIS WEEK, IN OTHER
WORDS TIME TO PAUSE.
JOURNAL SAID THEY'RE COVERING IT
SUGGESTING THAT LIKELY THE FED
WILL FOLLOW THROUGH ON A PLAN TO
ACTUALLY RAISE RATES.
TO SORT IT ALL OUT, NO BETTER
THAN JON HILSENRATH, ECONOMICS
EDITOR AT,
"THE WALL STREET JOURNAL" YOU
LIVE ON THAT NEWS SIDE, CONNELL.
>> I WANT TO THANK YOU FOR
DRAWING DISTINCTION BETWEEN NEWS
AN OPINION.
WE TRY VERY HARD AT THE JOURNAL
HAVE A OPINION SIDE, NEWS SIDE,
NOT TO MIX THE TWO TOGETHER.
CONNELL: YOU'RE PREACHING TO THE
CHOIR.
>> I APPRECIATE YOU DRAW THAT
DISTINCTION.
CONNELL: WE KNOW A THING OR TWO
ABOUT IT OURSELVES.
SO IN THE LEAD EDITORIAL THE
OPINION FOLKS AT JOURNAL BASIS
SAID, HEY, TAKE THE POLITICS OUT
OF IT.
THERE IS NO INFLATION.
TIME TO PAWS.
IT WILL BE INTERESTING TO SEE
HOW THEY GO ABOUT THIS TOMORROW?
WHAT SHOULD WE EXPECT?
>> I DON'T THINK THEY ARE GOING
TO PAUSE ON RATES TOMORROW.
I THINK THEY ARE GOING TO RAISE
RATES A QUARTER OF A PERCENTAGE
POINT.
IF THEY DON'T FOLLOW THROUGH AND
RAISE RATES AFTER HAVING
TELEGRAPHED IT FOR SOME MONTHS,
BASICALLY THEY SEND A BUNCH OF
BAD SIGNALS.
THEY SEND A SIGNAL THEY'RE
REALLY WORRIED ABOUT THE
ECONOMY.
THEY SEND A SIGNAL THERE IS A
SO-CALLED PUT ON THE MARKET.
THAT THE FED WILL COME TO THE
RESCUE EVERY TIME THE MARKET
FALLS.
THE THIRD THING THEY DO, THEY
BASICALLY CEDE CONTROL OF THE
FED TO THE PRESIDENT BY
FOLLOWING HIS ADVICE.
I DON'T THINK THEY'RE GOING TO
DO THAT.
WHAT I DO THINK THEY ARE GOING
TO DO, GO AHEAD, RAISE INTEREST
RATES, SIGNAL AFTER THAT, IT IS,
IT IS ANYBODY'S CALL.
THEY'RE DONE TELEGRAPHING MORE
INTEREST RATE INCREASES EVERY
THREE MONTHS.
THEY'RE GOING TO DO THIS ONE.
THEY ARE GOING TO SAY, LET'S SEE
HOW THE ECONOMY DOES.
IS THE ECONOMY REALLY SLOWING
DOWN?
IF IT IS WE WON'T RAISE THEM
AGAIN.
IF INFLATION IS SLOWING DOWN WE
WON'T RAISE THEM AGAIN.
IF THE ECONOMY PROCEEDS
ACCORDING TO THE FORECASTS,
INFLATION PICKS UP THEY WILL
KEEP --
CONNELL: I ASSUME FROM WHAT
YOU'RE SAYING ANALYSIS, THEY'RE
VERY AWARE FROM THE FEDERAL
RESERVE, AS ANY OPEN MARKET
COMMITTEE HOW WHAT THEY SAY IS
PERCEIVED IN MARKETS OR ANYWHERE
ELSE.
HOW AWARE ARE THEY, OR HOW
CONCERNED, OR HOW WOULD YOU
COUCH THEIR LEVEL OF CONCERN
ABOUT THE PRESIDENT, ABOUT ALL
THESE COMMENTS AND THESE TWEETS?
>> MY COLLEAGUE NICK TIMROS DID
A GREAT STORY ABOUT THIS A FEW
WEEKS AGO.
JAY POWELL'S PLAYBOOK, HEAR NO
EVIL, SPEAK NO EVIL, SEE NO
EVIL.
WHEN IT TALKS ABOUT THE
WHITE HOUSE, YOU STICK WHAT IS
HAPPENING IN THE ECONOMY WHAT IS
HAPPENING IN THE MARKETS.
DON'T ACT IF YOU'RE BEING
INFLUENCED BY THE FED.
IT IS IMPOSSIBLE NOT TO HEAR IT
THOUGH.
CONNELL: RIGHT.
>> IT IS IMPOSSIBLE NOT TO HAVE
SOME SENSE OF WHAT'S GOING ON
THERE.
SO --
CONNELL: WE WOULD NEVER KNOW, WE
COULD TALK ABOUT IT, WE WOULD
NEVER REALLY KNOW, RIGHT?
IT COULD BE A SUBCONSCIOUS
INFLUENCE WHICH MAYBE THERE IS
NO POINT TALKING ABOUT IT IF
WE'RE NEVER GOING TO KNOW.
>> I DON'T WANT TO GET INTO
PSYCHOANALYZING ANYONE IN THIS
TOWN.
IT IS VERY COMPLICATED.
BUT WHAT I WOULD SAY, JAY
POWELL'S VIEW IS HE IS GOING TO
CALL THE SHOTS AS BEST HE CAN
BASED ON WHAT THE ECONOMY'S
DOING AND THE FACT IS THE
ECONOMY LOOKINGS LIKE IT IS
SLOWING DOWN.
INFLATION SOFTENED A LITTLE BIT.
OIL PRICES HAVE COME DOWN.
THOSE NUMBERS WILL BE MODEST FOR
A FEW MONTHS.
CONNELL: SO IT'S A HIKE?
>> MAYBE TIME TO DO ONE MORE,
THEN PAUSE FOR A LITTLE WHILE.
CONNELL: BET ON THE HIKE
TOMORROW, THEN THE PAUSE, SAYS
THE NEWS SIDE OF THE JOURNAL.
>> THEY CALL THAT HAVE A DOVISH
HIKE.
>> I GET IT.
I GET IT.