Home caught on tape unleashing a screaming, profanityraced tirade at his neighbor, who happens to be Kathy Griffin. Is his job in jeopardy power lunch starts right now im Brian Sullivan thanks, michelle your money is steady ahead of the fed. The dow is up about 20 points. It would be higher if it wasnt for apple. Apple, the biggest drag on the dow, reportedly admitting there are some connectivity with their new watch. We have an ipo shares of ali baba backed the Logistic Companies best up inc more than 13 . Investors are throwing in the towel on bed, bath, and beyond plunging lets leave you with some good news if you own shares of biotech firm alnylam, that stock is up 40 after a drug candidate cleared. It is all about the feds lets begin there. The countdown is on less than an hour no rate hike is expected but this is still an incredibly important meeting and announcement because everybody wants to hear how the fed is going to start to unwind its multitrillion dollar Balance Sheet. Our economists reporter, Steve Liesman, from the Federal Reserve in washington. Is this all about size and pace . Yes you could say that, brian. With no double onton im sure. The fed announcing plans to reduce a key financial crisis and begin to reduce its 4. 5 trillion Balance Sheet there is more with the 2 00 p. M. Statement which comes with a new round of Economic Forecast the fed is expected to announce that Balance Sheet reduction beginning in october second, do fed members continue to forecast a third rate hike this year with some in the market have dialed out the expectations are that they produced their forecast for the long run fed funds race down from 3 . In addition to these policy questions, the issue of how the fed incorporates the economic effects of the twin hurricanes into its outlook and whether the fed continues to see inflation returning to its 2 goal or is it less confidence now i have been go the recent down side and prices we have had one more thing finally, how low does the fed believe Unemployment Rate can go most of all, as brian said, the question of the Balance Sheet, size and pace are critical here is what the fed has told us it is going to work. It calls for an initial 10 billion rolloff going by 10 billion quarterly and capping off at 50 billion a month the market knows all this. It is mostly yawn. We will see today if the actual announcement of bha the fwhat ts repeatedly said was coming if the market continues to take this in stride while investors count down to the fed, the dow and s p 500 hitting more record highs. The bull market is now officially the second longest and largest since world war ii will the feds unwind that steve just talked about cause the derailment of the rally. Lets bring in rich clarity and shannon sakoha, along with chris heisey after those titles, we have no time for the interview rich, lets get back to it, though talk about 4. 5 trillion. Many people call this the greatest trade anyone anywhere has done in the history of mankind. How does the fed unwind this without derailing the bull market rally we have been in for so many years . I think it is designed precisely not to royal the markets markets. It has been telegraphed since june the fed said, i want to go on a diet instead of eating three desserts, i want to have two they are still going to buy treasuries and mortgages even after the Balance Sheet starts to shrink. This is a process designed to be tell gra telegraphed and very gradual so far, it appears to be working. Shannon, are you a sanguine this was designedto try to drive the wealth effect and investment the natural response would be, well, if they are going to undo it, maybe you are going to see the opposite reaction. Is that possible i think everyone is concerned about a taper tantrum, part two, like what we saw in 2013 i dont think it is necessarily going to happen. I do think it has been well tell graf tellegraphed as far as the purpose of q. E. , it wasnt to get us all to to buy stocks as long as it is clear and transparent, a slow unwind is to be expected. Chris, here is the thing. If they are going to start letting the Balance Sheet roll off, there are going to be fewer buyers of treasuries, the long end of the curve that suggestion to me that it is possible, longterm Interest Rates rise if they do, that is competition to stocks. Why shouldnt i be worried about that, chris . Well, i think the first thing is, as the other guests have said and rich highlighted before, this is really quantitative easing rolloff, otherwise known as kiro. This is not a tightening, as some are suggesting. That would be the out right selling of bonds, which if the demand wasnt there for them at that point, i would be worried about how much of a spike the longer dated yields can go to. The biggest thing about this announcement in the next hour or so, it is very measured, averaging about 30 billion over the course of the duration of this potential Program Just Like it was when it brought it on here is the thing. This should push yields on the tenyear in the u. S. To about 3 next year. That 3 yield looks incredibly attractive to a lot of Global Investors around the world the demand should still be there. This is a structural demand element here thats why the worries arent as big as everyone is suggesting. Shannon, i know this is a bond story i get it thats what we are talking about when we talk about reinjechlvest we have viewers that may not own bonds. Tie together, please, for them, what the fed is going to start doing probably today and what they are going to announce why somebody who is 35 with a stock market investment would care i think frankly it may create certain opportunities within their stock investments, whether it is in financials. Thats an area that we think is attractive given what yields are going to do. From the perspective of the tradeoff, there is a lot of talk about whether it is dividend paying stocks. Greater competition as treasury yields go higher i dont think we are at that Inflection Point yet even if you have incomeproducing stocks, that may steal a little bit of pressure i dont think you need to do much there might be some opportunities created by this jun win unwind do you think chris is right what would that do for competition with stocks . That would be a pretty big hike from where we are currently. We have 220 on the tenyear. That would depend on getting a pretty big package out of washington in terms of fiscal policy and stronger growth i think given the path for rates that we see, i would not see 3 on the tenyear as a base case for next year the other point i want to make, michelle, is that the fed is shrinking the Balance Sheet. Banks have to hold a lot of high quality assets because of the post dodd frank regulations. There is an argument that says the fed is not buying but banks will have to replace those reserves with treasuries chris made that point there seem to be a lot of other natural buyers out there that might step in when they see rates rise yesterday, on trading nation, which is our online program, we interviewed Robert Shiller he made an analogy about a very bad time in history. When you plolook at this mar and the reserve you have done, what can you surprise from how people really feel and think well, you know, the market is about as highly priced as it was in 1929 but the market psychology seems very different now. So, rich, when i hear somebody like Robert Shiller make comparison to valuations in the worst year in u. S. Economic and stock market history, it makes me nervous he doesnt seem that way what shiller is saying, i know bob, he has a measure of price earnings ratios, which is at 1929 levels he has also written, if you look at news reports, you dont have people expressing the sort of anxiety they did in those prior crisis events, because inflation in the u. S. Has been below the feds desired level. People arent worried about the fed being too aggressive the psychology could change if we get some adverse inflation. Right now, it is not there thanks so much for joining us on this key fed day. Much appreciated Recovery Efforts underway in mexico after yesterdays devastating earthquake Steve Patterson is live in mexico city with the latest. Steve . Reporter the death toll right now, 225 that is no change from what we have heard just about an hour ago whethn that toll rose rescue Recovery Efforts underway as we speak. I want to show you back to the scene that we are at right now this is the middle of mexico city you can see crews up high above on the wreckage of what used to be a building. It used to be about six stories. Now, just a big pile of rubble however, it does contain what many people believe to be people who are alive in there, trapped in there thats the work thats being done right now crews searching through multiple scenes to try to find people who are trapped, try to find people who may have some sign of life so they can pull them out. That is the focus basically of this entire region as we speak we are also hearing about a school which is a couple miles south of here which we have confirmed 21 students. These are young elementary schoolers, confirmed killed. When that earthquake shook and crumbled their building. So the recovery effort, rescue effort is under way there. There are about 30 students who are unaccounted for in that building crews in a desperate search to try to find anybody who may be remaining in there these scenes are typical now around this area not only here in the city but also in the greater area as we continue to kind of follow this really desperate search to find anybody who may still be alive that is where all the attention is so far. Well send it back to you. Steve patterson, thanks so much to aditi roy, she has a news alert on equifax the House Financial Services committee is seeking answers about unusual options trading about three weeks before the Equifax Breach was made public this is something cnbc has learned. On august 21st, there was ten times as many equifax options that were sold than the entire month of july. On that date, 2600 contracts that represented the right to sell 260,000 shares of equifax at 135 each in september, they were purchased for between 60 cents and 70 cents a share those options would kick in if the share price dropped below 135 in september. At the time, shares were trading around 140 a share. This is, of course, nearly three weeks before the breach was publicly announced we want to underscore right now that the committee is right now just seeking information from traders about this this is not a formal investigation. This is also separate from various probes that are looking into the three Company Executives, including the cfo and the selling of shares after the Company Learned about the breach the company, of course, has maintained that in that case the executives didnt know about the breach at the time again, we are on this story. If you want more information, you can go on cnbc. Com. Back to you guys did the najarian brothers bring that up. Often times, we see unusual activity nothing comes of it, even though it does seem suspicious at the moment it is very hard to prove the house now getting in on it beyond what would be tip qual regulators. Exactly shares of apple down nearly 2 following reports of issues with its new watch john fortt joins us from the nasdaq with more on this it is a tethering issue for a watch that is hailed to finally be untethered. It is not a tethering issue it is really a confusion issue when it comes to the watch and wireless it doesnt know whether it should connect toa wifi network or a cellular network. Sometimes it is trying to connect to wifi when it is not supposed to or getting a wifi signal shout out to lauren good she is the reviewer who discovered this issue. Apple has put out a statement acknowledging that this is an issue and that it has engineers working on it. Is this a big problem . There seem to be many, many gates when it comes to apple products this one being a Software Issue is probably one that investors should take with a grain of salt granted, some early purchasers have preorder the apple watch. That happened last friday. The first ones are due for delivery at the end of this week it is a wireless issue that doesnt show up for everyone several reviewers that i have seen and a couple i have spoken to said this does not turn up in their reviews. Probably more likely to happen in urban areas where someone is passing through a number of potential wifi network. There is the issue of a fix. Apple is capable of pushing out a fix over the air with some of these issues and of administering it in the Retail Stores we will have to wait and see whether this becomes a longer term issue for these apple watch she series 3 guys. My phone hardly works so why would i expect the watch to work it is very similar to what you get if you have phone calls over wifi set up on your phone and you connect to a wifi network that doesnt have a strong signal or isnt working at all thanks, john. Hurricane harveys impact on housing, how big landlords are handling the damage, the cleanup, getting people back to their homes. That story next. First, Hurricane Maria making landfall in erputo rico, the strongest storm to hit the islands in 80 years. Well give you the latest next some things are simply impossible to ignore. The strikingly designed lexus nx turbo and hybrid. Lease the 2017 nx turbo for 299 a month for 36 months. Experience amazing at your lexus dealer. Welcome back the latest on Hurricane Maria. Ripping through puerto rico are more than 137 mile per hour winds. It is the strongest storm to hit puerto rico in more than 80 years. Some areas are expected to see 20 inches of rain, 69 feet of dangerous storm soearch. Expected to slam turks and caicos and then move east to the bahamas. Joining us from just outside puerto ricos capital, sanjuan how are you how are all the employees . Is everybody safe . Everybody is holding up people are a little concerned about their properties and their loved ones in this business, you spend a lot of time dedicating to be on the air. You give up the family there is heightened tensions right now. It is still not safe to be out on the streets they say the island is 100 without power. It has been that bad of a storm . Yes, definitely as your intro said, this is the worst storm to hit here in modern times for puerto rico it is one i dont want to go through ever again for sure. You went through andrew in miami. Compare and tell us what it is like as the eye passed about two hours ago. This is a very slowmoving storm. So it seems like we were in it forever. Where as andrew was kind of overnight. If you fell asleep, you woke up. It was gone. Here, you fell asleep. You woke up. It was still here. She came in through the southeast and left through the north coast. It is definitely sometime tomorrow when we will be able to see the flyovers and see the exact effects it had on the island the biggest concern is infrastructure as it relates to the ports and infrastructure as it relates to the power grid the port because everything here is brought in by ship. If the craines and the ports ar not up to bring the ships in, i dont have to tell you what that means. On the power grids, the concern is that the infrastructure is down instead of looking at two or three months, we may be looking at three to six months to get back in the 100 range we are showing video of unbelievable wind. I imagine you felt them in the station throughout the morning and also incredible flooding as well that is correct again, this was for me and for us here and for all of puerto rico, those that went through andrew or know the andrew story, to me, this is andrew on steroids definitely, something that was handled very, very well mtd the governor here did an amazing job in letting everyone know how dangerous this storm was and doing real outreach and getting people out of places when you live in this part of the world, you get a little complacent with these storms sometimes they miss and sometimes they go north and sometimes they go south. Irma went north of us. He was very emphatic more importantly for us, he hwev established an excellent relationship with fema and the white house. The president has tweeted out that. Reporter reporte puerto rico can depend on their support. We show this flooding video that was unbelievable. Whats it been like with the rain with the wind and the rain, when it normally rains, there is not a lot of wind. When you have 120 mile an hour winds with rain in it, it seems the water comes in from everywhere the least place you expect it. Interestingly enough, i sent a note out earlier this morning that said, just a couple of leaks here and there within an hour, those leaks started to turn into pieces of our inside roofs falling in. We are dealing with it we are okay. There is no loss of life this is just material and puerto rico is strong and it will come back strong. Thank you, jose we sure do hope so jose cancela, president and general manager of the nbc stations in puerto rico. From Hurricane Maria to Hurricane Harvey it put landlords to their first real test. Diana joins us live. Reporter hi, melissa we gave you similar pictures from a neighborhood about 45 minutes away that gives you an idea of the scale of this continuing disaster that was homeowners. This home is owned by American Homes for rent, a publicly traded, large scale, institutional landlord it and starwood waypoint own about 6,000 homes. Each community had over 100 homes that were seriously damaged. This was their first real test of how to deal with a disaster from getting crews in here, assessing the damage, moving their tennants both said being a large scale landlord worked to their benefit. We were able to use the scale of our platform professionally managed across the country and utilize our resources internally and externally to put together vendors. We put to