tv The Claman Countdown FOX Business July 18, 2019 3:00pm-4:00pm EDT
before. thank you very much. folks, we're at the highs of the session. the market gaining momentum. perhaps it's because liz claman is in washington, d.c. liz, you already had a huge show but it's even bigger. everyone's got to listen to your interview. liz: that's right. it is an interview with the number two top voice at the federal reserve. by the way, we have breaking news right now out of both iran and the new york fed specifically. both are kind of sparking this whiplash for the markets that turned into a late session intr. at the lows of the session we were losing 151 points. now spiking to the upside by about 20 points. this is a significant swing here. new york fed president john williams just said something very specific that suddenly pushed the market from down to up. we will tell you exactly what he said, and this. the guardian is reporting that iran has made a substantial nuclear offer in return for lifting sanctions. so all of that moving the
markets from red to green. breaking news out of the oval office. from prime day to prime target. amazon just became one of president trump's targets moments ago. he took aim at america's biggest online shopping company. the stock is down about three quarters of a percent right now. when he was sitting there with the prime minister of the netherlands, the president targeted amazon's bid for cloud contract with the pentagon, saying it wasn't a competitive bid and that other companies like microsoft and oracle are complaining about it. he says quote, he's taking a strong look at it but no mention of the stalled trade talks with china or the slowing global economy. those issues remain among the top reasons for the federal reserve's recent dovishness. should they or shouldn't they cut rates two weeks from today and by how much? federal reserve vice chair richard clarida is here in a fox business exclusive. we will ask him all the important questions that could
definitely move the markets. plus, senator bernie sanders rolls out his $40 trillion plan to fix health care but senator lamar alexander, the republican chairman of senate health committee thinks he might have a better idea but is ready to work with both sides. he is here in a fox business exclusive. and forget the wolf of wall street. a 2020 candidate is hunting wall street vampires. senator liz warren teaming up with senator tammy baldwin for the stop wall street looting act. dow is down about 25. oil is slipping in the aftermarket session. and netflix, all day long, is getting throttled. less than an hour to the closing bell, live from washington, d.c. let's start "the claman
countdown." liz: breaking news. we need to look at fed funds futures. this is a betting pool, right. these are traders who bet on the odds of interest rate hikes. well, the futures are jumping as traders now in the last 35 minutes are suddenly betting that it is more likely the u.s. central bank will lower interest rates by 50, not 25, but 50 basis points at its policy meeting in two weeks. the probability now standing at nearly 60%. the rally in rate futures followed comments from the new york federal reserve president john williams who just said in a speech that policy makers need to add stimulus early to deal with inflation that has been stubbornly low. rates, though, are near zero. he says we cannot wait for economic disaster to unfold before cutting rates. the markets loved that, right?
traders, investors love lower rates. it means that money is less expensive to borrow, suddenly we hit session highs after being down for most of the session. now, in 48 hours, the fed blackout begins. what does that mean. no federal reserve member will be allowed to speak publicly ahead of this all-important meeting, but here in a fox business exclusive in what will be his only interview ahead of that two-day meeting that starts on the 30th, is one of the deciders. we are joined by the number two man at the federal reserve, vice chair richard clarida, who will be a voting member. he always is, right, as vice chair. welcome, sir. we're thrilled to have you. so much going on. your compatriot, john williams, just making news. what do you make of his comments? >> let's talk about where we are right now. the u.s. economy is in a good place. we have a solid growth rate. we have a strong labor market. inflation is stable. but uncertainties about that outlook have increased. we talked about that. the global economy's slowing,
business investment has been soft. there are disinflationary head winds abroad and these uncertainties are something we talked about in our june meeting, we will talk about them again in july. what we said is that we will act as appropriate to make sure we're doing what we can to sustain a strong economy and stable inflation near our target. liz: i'm going to try and break you away from -- >> keep trying. liz: i want more detail. four weeks ago, after that june meeting, you publicly said that the case for the fed to step in and provide accommodation or rate cut had increased. today, sitting here now four weeks later, has that case been strengthened or weakened? >> i think from my perspective, liz, the reality is that the economy's in a good place. we want to keep it there. we've had mixed data but i do think to me, the global data has been disappointing on the downside. disinflationary pressures if anything i think are more intense than i thought six weeks ago. on the other hand, we had a strong labor market report so
that's great. so there's a range of data that we get and we will be talking about that at our july meeting. liz: you just said disinflationary forces. i want to get to inflation in a minute. but stick with the united states. what do you see the concerns here? >> well, what i see is inflation data has been coming in on the soft side. we would like inflation to be 2% and to be symmetric around that 2% and it's been running a little bit short of that. the headline gdp number was very strong in q1. that's great. but the underlying detail was a little bit soft. again, we had some weak investment numbers in there. there was an inventory piece. so again, nothing of great concern. but i do want to indicate that we're looking at the whole picture and we want to put in place the right policies. liz: i know the whole picture includes the rest of the globe but you just mentioned some of the data. look, the philly federal reserve index just came out. that's an indication of manufacturing in the midatlantic area. it was four times better than
the expected number. we had a great june jobs number of 224,000 jobs. the beige book yesterday was pretty positive. i'm wondering how do you look in the mirror, you, collectively, the fed, and say oh, we've got to cut rates? aren't those supposed to be reserved for emergency times? >> well, there are a couple of points here. first of all, monetary policy does operate with a lag. so at each of our meetings, we need to make a decision based upon where we think the economy may be heading and importantly, where the risk to the economy is lined up. under ideal monetary policy, you adjust rates to keep the economy on an even keel, so you don't necessarily want to wait, as i think the quote from john williams indicated, you don't want to wait until the data turns decisively, if you can afford to. to your second question or second part of your question, the reality is that in the past, the fed and other central banks have found it appropriate to take out insurance policies in good times, so that's part of
the toolkit. if you need to use it, you don't need to wait until things get so bad to have a dramatic series of rate cuts. liz: but you've got a dual mandate. you have full employment, which we have, and inflation at 2% in the target. yes, we have been stubbornly below that, persistently, but do you see it trending even further away from 2%? do you see a trend at all there? >> a great point. our baseline view is for our measure, preferred measure of inflation, the pce index, the core part of that, to move up towards -- it's currently running at about 1.5, 1.6. liz: but it's moving away. >> well, it has been moving away this year. we think some of that is transitory. that's our baseline view. but an important part of monetary policy is not only setting policy for the baseline, but also doing risk management considerations. that will be another consideration we'll talk about in july. liz: do you see, you mentioned disinflation which is the slowing down of inflation. do you see a deflationary spiral at all? >> no, no, not at all.
no. i think the fact is that under fed leadership, really going back a decade, the u.s. was able to avoid that risk that quite frankly is a problem in japan and inflation is too low in the euro zone compared to where they want it. no, that's not an issue for us because we have had good monetary policy. liz: globally, you're seeing worrisome signs. what we hear from chairman powell, that's what he's looking at, but does that mean we have now become the world's central bank? >> well, i think for decades, the fed has been the leader among the world's central banks. the dollar is the global reserve currency and for a variety of reasons, i think that's been true for some time. what is the case now, and it is important for your viewers to notice this, is what's somewhat unusual about the current situation is the divergence between where we are in the u.s. cycle and where europe and japan are. so the fed has been normalizing policy, we have moved rates well above zero. look at the euro zone. they have negative rates, more than half of european bonds
trade at negative rates. japan has got negative rates and is basically mired -- liz: shrinking gdp in south korea and in mexico. i get all of that. i get that we don't want to be standing there in the middle of the road in our escalade and get barreled over by these trucks on our screen right now which are seeing shrinking gdp, yet a lot of people, smart people, have said that we've been in artificially low rates for too long and that that has added so much debt to the american balance sheet. if we cut rates again, or do some type of stimulus in some other way, aren't we risking even more debt? >> well, let's talk about the debt picture in that case of the u.s. economy, the household sector has actually been deleveraging for the last decade. you are correct, the corporate sector has added debt and we discussed that in our financial stability report released a couple of months ago, but i think an important fact of life is in the global economy now, we have an integrated global
capital market and rates are low globally. that's basically a fact of life for central banks. u.s. rates can divert to some extent from global rates but there's a limit to how far that process can go, because of integrated capital markets. liz: is there a chance come july 30, 31st, the two-day meeting, that the fed decides to leave rates unchanged? >> well, i think we are going to every meeting looking at the range of options available to us. i think our messaging has been quite clear that we want to put in place the appropriate policies to keep the economy in a good place, and certainly we have indicated that chair powell himself indicated in his press conference after the june statement, many members of the committee expressed the view that the case for providing accommodation has increased in recent months and so that's certainly a factor that we'll be considering going into this meeting. liz: how do you view rate cuts through the lens of the protracted trade battles that we're in right now? >> well, you know, our focus is the u.s. economy.
we don't do -- we stay in our lane. liz: you are bringing in globally quite often in the first nine minutes of this interview so it does play in. >> the way we think about that is in particular uncertainty about trade policy is elevated. there are different measures of that. to some extent, uncertainty about trade policy is probably a factor that is impacting confidence in business sentiment and perhaps investment, and so trade policy and all policies fact oor into our outlook depending on the way they shape our outlook for the economy. liz: president trump has very publicly put pressure on chairman jay powell of the federal reserve. i know you're going to say the fed is independent, but you can't ignore the chorus and it's a loud one sometimes. how do you tune it out and will you continue to tune out even when the commander in chief says cut rates which is kind of ironic, because he criticized president obama's term for being -- keeping rates way too
low for too long. >> you know, i have been at the fed now for ten months. this will be my eighth meeting. what i can tell you and the transcripts when they are released in five years will bear this out, we are focused on doing our job. we have a dual mandate assigned to us by congress. people can and do express opinions. we are certainly aware of that. we have a very strong community now of 17 individuals and we are just going to make decisions that are in the best interest of achieving our mandate. liz: one last question. there are nine quarter point rate cuts left before we hit zero rates. >> yeah. liz: is it really smart to use those arrows up when we only have nine of them in our quiver at the moment? one, two or three for the rest of 2019, as the fed has indicated it will? >> well, again, i think that those are very important issues. it's a good question to raise. it's certainly things we'll consider. i think it's also important to note that research has indicated
that when you're close to zero, it's also relevant to think about acting preemptively when you can, if you can avoid a more significant downturn. liz: we don't want less than zero. >> well, no. the u.s. certainly in the last financial crisis made the decision not to push rates into negative territory, and that's certainly not something that's come up in my time, in my ten months at the fed. liz: good to see you. thank you so much. on a very busy day. you come in, it's boiling in d.c. and hot in the studio because we have a lot of news. thank you so much. >> thank you, liz. liz: richard clarida, number two at the fed, vice chairman of the federal reserve. before we began our interview, we had markets picking up steam. i mentioned that right at the top, when charles handed it over to me. right now, we are now well off session highs, still to the upside here, but we are up about 23 points for the dow, better by 11 for the s&p. investors are not so hot on netflix today. well, perhaps investors from bangladesh to brazil may not be
as riveted to the hit series "stranger things" as the rest of us are in america. the stock is enduring its worst decline in three years after second quarter whiff on new international growth and a rare loss in u.s. subscribers. but it was a really big miss internationally. however, netflix is projecting a stronger third quarter thanks to its hefty content slate. the stock is still down about 10%. big blue is at the top of blue chips today. ibm up on a second quarter profit beat. the firm's cloud business grew more than forecast. now, next month, ibm says it plans to give out an earnings update that will include the impact of its $34 billion acquisition of enterprise software maker red hat. year to date, ibm is turning around. it is up 26%. five more percentage points added right now. all right. when we come back, closing bell rings in 45 minutes. senator lamar alexander, the rare gop senator who is for some
type of green deal, and he's just unveiled a bipartisan health care plan he hopes will be joined by democrats. stay tuned. is where people first gathered to form the stock exchangeee, which brought people together to invest in all the things that move us forward. every day, invesco combines ideas with technology, data with inspiration, investors with solutions. because the possibilities of life and investing are greater when we come together. ♪
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president trump just announced from the east room that the united states has taken out an iranian drone that was apparently threatening a u.s. ship. the "uss boxer" says the drone was immediately destroyed and the president says that the drone ignored quote, multiple calls to stand down and that it was threatening safety of the ship. president trump has called on other countries to condemn iran and to take whatever measures are necessary to protect their own ships. we are now up just five points on the dow. remember, our session high earlier was, what, 28? we were certainly higher than this. so we're seeing a bit of moderating here on the market. let's take a look at oil right now. oil is turning around in the after-market session. you can see the low right around the top of this show, and now we are climbing back up but it's still down $1.23. a while to go before the flat line.
dow just turned negative. intraday picture, you can see it is heading down. no doubt much of this has to do with the fact that as we have just learned from president trump, "uss boxer" a u.s. ship has taken out an iranian drone that apparently came within 1,000 yards of the ship. i'm glad we have our next guest for that but also, we need to tell you that just yesterday, 2020 hopeful democratic senator bernie sanders defended the massive $30 trillion to $40 trillion price tag of his medicare for all plan, saying it's a bargain compared to what the status quo would cost. listen. >> if we do not change the current system, this country will be spending $50 trillion over the next ten years, almost 20% of our gdp. liz: well, what's the republicans' answer?
one gop senator absolutely agrees that health care in america must change and he is reaching across party lines to sponsor his own legislation. we welcome chairman of the senate health committee, lamar alexander of tennessee, in a fox business exclusive. sir, i do need to quickly get your comment on this iranian drone being shot down, because it is affecting the markets. >> i would like to know more about it but maybe one way to look at it, it's a proportionate response to what iran did to us earlier. remember the president said something about that, that an attack to kill people would not be a proportionate response. maybe this is. liz: so he's just taking out the drone at least at the moment, or at least -- >> i don't know. i just heard what you heard. liz: okay. all right. i want to get to health care. obviously, bernie sanders says medicare for all. you've got a plan. does it reflect health care for all in any way, shape or form? >> no. now, remember what medicare for all means. it means if you've got insurance on the job, and 180 million americans do, he would take it
away and give you something different. what we're working on and what democrats as well as republicans agree on is reducing the health care costs out of your own pocket. not health insurance, health care costs like surprise medical billing, where you get a bill two months after you go in that you don't expect. like prescription drugs, bringing those costs down. like giving you more information about whether an mri costs $700 or $7,000 so your employer can lower his or her costs, and your costs as well. liz: when you say democrats as well, who do you have on board? who have you been talking to? >> senator patty murray is the ranking democrat on the health committee but we have 39 democrats and we have 35 republicans who have come up with a bill that has 55 different proposals. you don't hear about that very much in washington, d.c., but we sat down and said look, if 50% of what we're spending on health care may be unnecessary, which is what the experts say, can we not think of some specific things to bring down the cost
and we have 55 steps. liz: lower health care costs act is what it is called that you're putting forth. i found this interesting. deeper within it, it recommends that you raise the age of people to be able to buy tobacco products to 21. most states, i believe it's about 18, correct? >> that's right. liz: you come from a tobacco state, tennessee. >> well, i do, but the principal sponsor, i support it, the principal sponsor, senator mcconnell and senator kaine. they're from tobacco states. they understand as i do that tobacco especially damages the brain of younger people and we don't want people to get in the habit of using tobacco. liz: we expect because we're a business network for a little pushback probably from the tobacco companies, but we did see philip morris had earnings today, they were pretty strong. we watch all of that as it weaves in. we are also watching energy companies. as you know, the green new deal was much attacked by the gop from the left side. what do you think of your plan?
>> not just the gop. we voted on the green new deal in the united states senate. it didn't get one vote. didn't even get a democratic vote. liz: do you believe in climate change? >> i do. i believe climate change is real. i believe humans are causing it but i don't believe you get rid of natural gas to solve the problem. natural gas and efficiency are the two principal ways the united states has led the world the last 15 years in reducing greenhouse gases. liz: great to see you, senator. thank you very much. senator lamar alexander, republican of tennessee. we'll be right back. the dow has now turned negative again. dto experiencer gthrilling performance. now, at the lexus golden opportunity sales event.
telling fox business exclusively he sees no deflationary spiral, which would definitely be a bad thing and the markets really like that. but then reversed on newst a u.s. ship has shot down an iranian drone. right now, dow is down 13. s&p holding on to gains of about eight. okay. we've got microsoft, second quarter earnings coming out after the bell. so that's in about 30 minutes from now. as of right this moment, microsoft is the most valuable company in the world. by the way, it's the only company with a market cap over $1 trillion. will today's earnings be a catalyst to shove it higher? or might it bring the tech titan back down to earth? to gerri willis live on the floor of the new york stock exchange. this is a crazy day. gerri: oh, my gosh. so much news going on, moving the markets everywhere. of course, in microsoft's category, the president saying he's going to revisit a big contract that microsoft is expected to get. that may be why you see the share price down right now. the company reporting earnings
after the close, expecting $1.21 per share, $32.77 on revenue and that of course is billions of dollars. cloud revenue expected to grow 15%. watch that azure business. this is the critical business for this company. quarter year over year growth at 73% as you look at the annualized number, it's 41%. remember that just yesterday, ibm reporting its earnings, its cloud business only growing by 4% so this is critical for microsoft. one other thing to watch, windows operating sales. that problem they had with chips coming from intel for pcs, that's over. we could see improvement there. also, does the ceo have any good ideas for boosting earnings higher, could this be something new for microsoft. we will be watching. back to you. liz: gerri, thank you. by the way, connell and melissa will jump all over those microsoft earnings the second they come out. make sure to tune in to "after the bell." when we come back, so much
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for example, wisconsin-based discount chain shopco was acquired by private equity outfit sun capital in 2005. it sold the real estate underneath the stores, added it to the balance sheet, made millions in cheese and when it failed to find a buyer in january, it filed for bankruptcy and liquidated. we are joined by wisconsin senator tammy baldwin, co-sponsor of the stop waut stre wall street looting bill. this is personal for you. how many people lost their jobs in wisconsin? >> about 3,000. many of them, their final day was just a couple weeks ago as the remaining stores were liquidated and the headquarters was shut down. liz: let's talk about this bill that you have put forth. how can any of it stop what had happened at shopco? >> well, the anti-looting provisions you were talking about, in the lead-in you were talking about one of the first actions of sun capital was to sell all the real estate that shopco owned, then lease it back. it netted them about $815
million. that was not reinvested in the shopco enterprise. it actually inured to the benefit of their investors, their executives, and that is looting the company, as far as i'm concerned. they have no obligations in the bankruptcy. they were actually promised severance pay, the workers were, if they stayed through the last day, because they knew that they were foregoing opportunities to get other jobs after notice was given. sun capital reneged on that promise. liz: also, it's not just private equity and by the way, i will stick up for private equity in a minute because there are some that buy companies and save them. >> absolutely. liz: but you know, through all of this, private equity managers get to in essence change the way they get taxed on their income. they're taxed at a way lower
rate than you or i or almost everybody watching right now. that's called carried interest. they are taxed only at the capital gains rate which is much lower than regular rates. what would you do about carried interest and by the way, let's first hear that president trump might be on the same side or at least he was during the campaign. here's what he said. >> part of this reform, we will eliminate the carried interest deduction, well known deduction, and other special interest loopholes that have been so good for wall street investors and for people like me, but unfair to american workers. liz: he sure sounds like he's on your side. have you talked to him? do you think you can get him to support you? >> well, i do understand that when the 2017 tax bill passed, that that was one of, you know, his advisers were saying that was the biggest disappointment, that it wasn't part of it. this is a part of the legislation i just introduced.
you have to think about these private equity fund managers spend, as a full-time job, investing and managing their portfolio companies. why should they be taxed at a much lower rate than other people who are earning income from their full-time employment? it's unfair. liz: i agree that carried interest is in many ways unfair, but what we don't want to do, and you tell me if i'm wrong, we don't want to tamp down on people taking risk, private equity guys taking risk to scoop up a distressed company, fix it, many of these are mismanaged by old management that didn't bend so they broke, fix it, and then more people get hired. there are those examples. >> there certainly are, and i think that any well-managed private equity fund that doesn't participate in these predatory practices will be very unaffected by this legislation. this is tailored as best we can
to go after those predatory abusive private equity firms that really are there to do things like this sale to lease back proposition that strips decades old company of its biggest asset and never invest it back in the enterprise. liz: we are bumping up against a debt ceiling, and the clock is definitely ticking. what is the formula to get republicans and democrats on the same side to get a budget deal before the deadline? >> you know, i'm hearing, the latest reports i'm hearing are very encouraging, that at least the larger framework is very close to being agreed upon, including a two-year deal, not just a one-year deal. liz: really? you're hearing that? >> i am. but we have to operate quickly, because we have -- the house goes into recess after next week, and the senate's in for two more weeks but we have to get this done before we have --
going against the debt ceiling limit so all of that, i'm actually fairly optimistic that we are going to be able to get that done in a bipartisan manner in the next week or two. liz: okay. that is news. i want to quickly just tell you, as you know, we reported at the top of the hour that a u.s. ship has shot down an iranian drone. the markets have been moving on this. you do sit on some subcommittees of senate appropriations that are involved in defense. i know you're getting the news as we are, but it apparently came within 1,000 feet of this ship, and they brought it down. your thoughts? >> well, for weeks now, i have been encouraging our administration to de-escalate tensions and what i see instead is a ramping up of tensions. for a whole variety of reasons over many, many months. that said, i have no reason to believe that this wasn't the most appropriate action. at this point based on very
little information. and so i want to learn more, but i do still call on the administration to use its leadership to de-escalate and get back to a point where we can engage in the negotiations we want to stop their nuclear program, to stop their funding of terrorism, and that should be our enterprise. liz: good to see you, senator. >> good to see you. liz: senator tammy baldwin of wisconsin. thank you. so far, we do get this news about the latest engagement. no reports of any injuries in this shooting down of an iranian drone by a u.s. ship. the "uss boxer." by the way, this sunday, the call has come once again, because when we talk about military, we are talking about our brave soldiers. i am once again the captain of team fox business. together with my team partner democratic strategist chris hahn, we will compete in our eighth new york city triathlon
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degree in history from tampa university. this is because of you guys. you guys have been amazing. last year you helped me raise $83,000 for these heroes. right now, we are at nearly $65,000. guys, we have three days until the triathlon. i would love for us to beat that number. building homes for heroes.org. thank you. we will even take change you find in couch cushions. we'll be right back. at comcast, we didn't build the nation's largest gig-speed network just to make businesses run faster. we built it to help them go beyond.
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liz: bail denied for prominent financier jeffrey epstein as the new york federal judge just ordered him to remain behind bars. he wanted to stay at his mansion but now behind bars until his sex trafficking of teenagers trial begins. the judge saying that epstein is still a danger to the public and may use his great wealth and
vast resources to flee the country, but as this legal case against epstein grows, there are questions swirling about how he got the money for his lavish lifestyle, and those questions remain unanswered. charlie gasparino has some exclusive insight into epstein's finances. >> you know, who are his friends. you know, it's hard to believe a guy accused and actually convicted ten years ago, this is a re-introduction of the case, this is a federal case that could, you know, give him more time in jail and it's more victims and it's really bad stuff, that you know, it's hard to believe he didn't have friends in the past and he did, he was very friendly with people like bear stearns. he was friends with bill clinton. he was friends with donald trump. he was friends with prince andrew. he was really good friends with a guy named les wexner who ran a
retail firm, not a little one, he's a billionaire, this guy, called the limited brands. they own various brands including victoria's secret. epstein was his money manager essentially, the guy that, you know, did work for him financially and also traded for him through bear stearns as sources are telling fox business. but we reached out for a comment on all this and got two responses from wexner. one, a reiteration of what he told us in the past, that he broke up with epstein, no longer did business with him ten years ago. that's when the first charges came, the state charges that landed him just in jail for 13 months, but also registered sex offender and, you know, that's what kind of, that case has been slow boiling until what occurred now, the federal case. the other thing he told us is very newsworthy and kind of interesting. wexner, a person associated with him tells fox business that the house that epstein lives in now, the townhouse in new york, the swanky townhouse, that many
media reports said was given to epstein, wexner's people are telling fox business it wasn't given. they have documentation, they say, which they have not provided to us, but they say they have the documentation that epstein paid $20 million for this swanky townhouse. you will recall that when -- after epstein got arrested, when he came off a plane from france, his private jet, he got arrested at teterboro airport two weeks ago. right after that, the feds basically raided his townhouse. this is like one of the biggest, poshest townhouses in manhattan. they broke the door down, they went in there, they seized various items including photos of women with what appears to be underaged girls nude or semi-nude. so this townhouse figures prominently in the prosecution of epstein and you know, what wexner's people are saying now, we didn't give it to him, he had
to pay for it. what does this mean? wexner is just the latest associate of his, there are a lot of them, i have been speaking to them lately, trying to distance themselves from epstein. i don't know how wexner does it that much because if there was anybody that made epstein the multi-billionaire he is, it was his relationship with les wexner. anyway, back to you. the story of jeffrey epstein will be continuing. we will be writing stuff up for fox business imminently. we have some details on this. i would just say stay tuned. by the way, i'm in your studio, i feel very at home here. i feel like it's mine. i feel like it's mine. liz: he's like pete townshend smashing guitars. >> i will try not to get too comfortable. liz: the feds funds futures are now moving even more, okay. we now have an even higher bet of a rate cut on news of what the fed chair said right here on
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liz: we need to check in on fed funds futures. the odds of -- it is now 70%. so that board was incorrect. it is now 70% odds of 50 basis point cut. this on news, right here on fox business, claman countdown that the vice-chair of the federal reserve, richard clarida said data are mixed, economy is good, sees global data is disappointing. uncertainties increased. he does see a deflationary spiral for inflation. dow on pace for its third down
day in a row but there is so much news here affecting the markets. the fed of course two weeks away from deciding on interest rates, jc mckenzie. state your case on this. the consumer looks good. i pushed richard clarida on the good philly fed full number but they keep pushing the global economy looks weird. >> pressure from global markets, europe and the uk, looking to the u.s. the u.s. is the strongest economy by far. the question, if rest of the world continues to see weakness what happens if there is slowness in there? what he said which was very interesting, you want to be ready in the event of a slowdown, not once it has begun to turn it around. that was interesting thing to
say. that is one of the reasons you're seeing a basis rate in fed funds increase over last hour or so. liz: it it it interesting to me said we don't want to zero interest rates so we cut closer to zero? as we put these up, i think it is important, apple, tesla, netflix, where do you feel the consumer goes to here very quickly? >> what is interesting over all first time since november 2016 our imx indicator had net sellers across the board. what you're see something really strong first half of the year a good first half of the year people took a lot of off the table. same thing with netflix before earnings. some people are taking off
long-term baines. that is where they're taking it off to get a little more cash. [closing bell rings] liz: good to see you, jb mckenzie of td ameritrade. slightly lower dow jones, not a bad day with so much news. the bulls hang on in some shape or form. that will do it for the "claman countdown". melissa: the only u.s. company worth one trillion dollars will release its result. microsoft will report earnings any minute. we'll bring you the numbers just as soon as we have them. the dow fighting for gains at the close, ending up a whopping one point, almost two if you round up, amid heightened tensions with iran, optimism for rate cut. i'm melissa francis. neil: i'm connell mcshane this is "after the bell."