Andrew levin, whos professor of economics at Dartmouth College and former adviser to former fed chair ben bernanke victoria fernandez from crossmart Global Investments is in houston congratulations. Thank you. Peter costa from empire executions is sheer at pohere a9 with us. Rick santelli is at the cme. Were going to get reaction later from former Federal Reserve governor larry meyer with us and Richard Fisher well get color from them on the new nominee, the impact he will have on the Federal ReserveGoing Forward. Steve, lets start with you. As we await the president , to come out of the oval office which could happen any moment here, hes considered the safe pick why . Well, i think because he doesnt want to have a huge change at all in policy. Doesnt he loves the way the markets have been behaving doesnt really want to upset that particular apple cart look, were not sure whos going to be appointed, bill, but i thought we might just talk about the bio of Jerome Powell, how about . The fed governor oh, sure. Reporter lets just talk about who he is. 64yearold washington, d. C. , native princeton educated law school from georgetown fed governor appointed by president obama, by the way, as part of a republican democrat deal for the fed you have business experience in Investment Banking also government experience as an undersecretary of the treasury under george h. W. Bush a guy whos spoken, by the way, favorably of the past policies of the Federal Reserve in the foe postcrisis when it comes to Monetary Policy. Some of the issues, on the path of rates, he wants them to rise gradually. On the issue of reducing the Balance Sheet, what he said in the past is it ought to be reduced gradually. On the issue of bank regulation, generally in favor of the existing dodd frank framework but says adjustments need to be made its only appropriate to make those adjustments. Finally, on the issue of the economy, he has called it strong hes called the labor market very strong. Lot of continuity on Monetary Policy well see how far he goes along with other new appointees from the Trump Administration to the board of governors when it comes to changing some of the regulations on the banks in dodd frank guys stay with us, steve victoria, whats at stake for you with this announcement yowhn you think about your investments . When we look at what were doing on the fixed income side especially, we have positioned ourselves for rising rates Going Forward. We have shorter duration bopnds, we have high levels of income coming in in order to really buffer any volatility we see with Interest Rate movements if powell is our person thats going to head the fed, i dont think were going to see much change from the path thats already been laid out. Yellen has been very specific in what she planned to do i think powell will continue that but he does kind of give the best of both worlds. He allows trump to have the same policy that continuity of low rates, which he likes. And yet you also get someone coming in that maybe will side with him on the regulatory front. So i dont think were going to have much of a reaction at least in the near term Going Forward, however, i think its those open seats. Its that vice chair seat, its the other open seats with the board of governors that we might be able to shift the, kind of the feel of the fed a little bit over the coming years to see if theres something thats maybe a little more hawkish than what weve seen in the past andrew levin, you studied under john taylor who was also under consideration as we well know, and you publicly said you would have favored janet yellen at some point. So what do you make of Jerome Powell getting the job well, first of all, i think President Trump emphasize ed yesterday, again, Janet Yellens done a terrific job, the labor market improved dramatically over the last few years. Inflation stayed low even though there were some warnings and concerns a few years ago that it was going to get out of control. Inflation has stayed, if anything, below the feds target but jay powell has been there these last five years supporting the Federal Reserves Monetary Policy framework and hes voted in favor of their decisions, so i think theres going to be a lot of continuity as others have mentioned and as victoria said, theres several other vacancies that the Federal Reserve board in d. C. That the ft. Will need to appoint and the senate quill need to confirm. Those are also going to be important. This is not a ding tat dictatorship its a real committee. Every person on the committee is important. Larry, is there a chance john taylor could show up in one of those other seats. Its possible ive spoken to john about it i think he has mixed views but if the president asks him, its pretty hard to say seats about vice chair. I dont want to put words in johns mouth a great friend of mine taught me a lot of economics i want to say, a little bit of a quibble, this issue of continuity interests me because one thing thats going to change bigtime i think is fiscal policy and you have to look at monetary and fiscal policy together money is the lever for inflation. Usually fiscal is the lever for growth so if the tax cuts go through, you, in my opinion, will have a jump in economic growth, big jump from 2 to 3 or 4 ish the question is, has the fed han ha handled this we have no mint hints of this,l faster growth cause higher inflation . By the way, hes not on economist. Right. Thats an interesting wrinkle, if he doesnt come with an economic dogma about what youre raising, who is he going to lean on to answer that question i dont know who his closest confidants are having a its not only powells view of the world, theres a whole committee as said earlier and the trouble, larry, i think you have and will have is that the fed is still going to lean less on a phillips curve framework, if wages go up at a pace thats faster than productivity, its likely to be inflationary. So i can translate, larry, the question youre asking is how much leash does he give to the economy in a supplyside tax cut framework . Actually thats thats where im going on this. And i agree with you look, my view, lot of people disagree with me, i get that, but i regard this principally as the supply Side Business side production side tax cut i think it will boost wages. How much, i dont know, but a significant amount it will boost overall gdp. So i think the chairman has enormous power at the fed. And the board staff has enormous power at the fed staff is really important. All right. And if, you know, if they stick with the phillips curve, they may tighten more to stop the growth. What happens, larry, if you get hang on, steve. I know you cant see it, but here comes the president and look at that surprise, surprise, Jerome Powell standing next to him. Jerome powell im pleased to welcome members of the cabinet, members of congress, and distinguished guests to the white house rose garden this afternoon. Also i want to welcome the chairman of the Senate Banking committee whos done an incredible job, mike crapo wheres mike please, mike great job. Appreciate it. As president , there are few decisions more important than nominating leaders of integrity and good judgment to hold trusted positions in Public Office and few of those trusted positions are more important than the chairman of the Federal Reserve. Accordingly, it is my pleasure and my honor to announce my nomination of Jerome Powell to be the next chairman of the Federal Reserve. Congratulations. Thank you, mr. President. Jay is joined here by his wife, lissa, and his two sisters, monica and elizabeth. And i say congratulations to you all. Please, take that bow. Please you deserve it thank you very much for being here today is another important milestone on the path to restoring Economic Opportunity for the American People. In just a short time, we have already made incredible strides. Unemployment is at its lowest level in more than 16 years. You know that very well. You know that very well. Youre happy about it. Weve now had backtoback quarters of 3 growth, a major accomplishment and were doing better and better every single week but if we are to sustain all of this tremendous economic progress, our economy requires sound Monetary Policy and prudent oversight of our Banking System that is why we need strong, sound and steady leadership at the United StatesFederal Reserve. I have nominated jay to be our next federal chairman and so important because he will provide exactly that type of leadership hes strong, hes committed, hes smart and if he is confirmed by the senate, jay will put his considerable talents and experience to work leading our nations independent central bank, which has the critical responsibility to set Monetary Policy and monitor our Banking System as a whole. There are few more important positions than this, believe me, in h our government. Jay has served on the Federal Reserve board of governors since 2012 during his five years at the fed, jay has earned the respect and admiration of his colleagues for his hard work, expertise, and judgment he has proven to be a consensus builder for the sound monetary and financial policy that he so strongly believes in based on his record, i am confident that jay has the wisdom and leadership to guide our economy through any challenges that our great economy may face jay has earned the respect of members of congress straight across party lines for each of his appointments to the fed, the Senate Confirmed jay with strong support from members of both parties. Thats unusual i hope the senate will swiftly confirm him once again jay will also bring to the fed a unique background of prior Government Service and business experience he previously served as undersecretary at the department of treasury in the administration of president george h. W. Bush and just like william mcchesney, the longest serving chairman in Federal Reserve history, jay will bring extensive private sector experience and realworld perspective to our government. As a result, he understands what it takes for our economy to grow and just as importantly, he understands what truly drives american success the innovation, hard work, and dreams of the American People. I also want to thank the current chair, fed chair janet yellen, a wonderful woman whos done a terrific job we have been working together for ten months and she is absolutely a spectacular person. Janet, thank you very much we appreciate it for the past four years, she has served with dedication and devotion and we are grateful for her total commitment to Public Service. The Federal Reserve is one of the most important institutions in our government. It is respected all around the world and is crucial to our economic prosperity. I am confident that with jay as a wise steward of the Federal Reserve, it will have the leadership it needs in the years to come. Thank you, and god bless you all. Now i would like to invite jay to say a few words thank you. Thank you very much. Thank you, mr. President. Thank you so much. Thank you very much, mr. President , for the faith that you have shown in me through this nomination. Im both honored and humbled by this opportunity to serve our great country. If i am confirmed by the senate, i will do everything within my power to achieve our congressionally assigned goals of stable prices and maximum employment i want to thank my wife, alyssa, for her love, support and wise counsel. Without her, quite honestly, i would not be standing here were thinking today of our three children and of the world theyre inheriting my five siblings and i, two of whom are here with me today, are thinking of our parents who gave us so many gifts including most of all a loving home in the years since the Global Financial crisis ended, our economy has made substantial progress toward full recovery. By many measures, were close to full employment, and inflation has gradually moved up toward our target our Financial System is also without doubt far stronger and more resilient than it was before the crisis. Our banks have much higher capital and liquidity. Theyre more aware of the risks that they run and theyre better at managing those risks. While postcrisis ill proouchmp in regulation and supervision helped to achieve these gains, ill continue to work with my colleagues to ensure the Federal Reserve remains vigilant and prepared to respond to changes in markets and evolving risks. Finally, to echo the president s remarks, ive had the great privilege of serving under chairman bernanke and chair yellen who guided the economy with insight and courage through difficult times while moving Monetary Policy toward Greater Transparency and predictability. Each of them embodies the highest ideals of Public Service. Unquestioned unflinching commitment to fulfilling our mandate inside the Federal Reserve, we understand decisions matter for American Families and communities. I strongly share that sense of mission. Im committed to making decisions with objectivity based on the best Available Evidence in in the longstanding tradition of Monetary Policy independence. Mr. President , thank you, again, for this extraordinary opportunity to serve the American People. Thank you. Thank you, jay. Thank you, everybody thank you very much. Thanks. Thank you jay powell there, the new nominee as expected to be the next chair of the Federal Reserve, has to get through the Senate Confirmation process. Hes already gone through that as a Federal Reserve governor. Not anticipated there will be any big problems there. Steve liesman is back with us along with our panel steve . Is. Reporter well, it was interesting to hear jay powell, Jerome Powell talk about the idea of making change in concert with colleagues, praising yellen, praising bernanke, connecting himself and his forthcoming tenureship with their prior tenureship and the policies they made, again. He praised those policies breaking a bit as we talked about with republicans also the president made clear, i think, in his statements what attracted him to powell. It was the combination of three things prior government experience, prior business experience, as well as experience at the Federal Reserve. So those three things, it was interesting to hear him connect to William Chesney martin almost 20 years. Chairman. 20 years ending in the 1970s who also was not an economist and also had business experience. I was just reading up on him after he mentioned him i hadnt thought of it in a while, larry served from 1951 he was nominated by truman and served until 1970 and Richard Nixon blamed him i know. For losing the Economy Campaign in 1960 for his tight money policies. I think wasnt bill martin the head of the New York Stock Exchange or a broker in the New York Stock Exchange . Something like that. I think he was. Was he . I think he was. Was he the head of the exchange i think he served for a short time he was definitely a broker. Lbj took him out publicly arm twisting doesnt really give enough credit to what johnson did to martin. Right. For one lousy quarter or half point discount rate hike middle of the vietnam war and oh my gosh. What fed chairs go through. Rick santelli, not much market response at all. I think thats the point you know, they didnt want the markets to be spooked by any of the whoever was going to be nominated, right reporter yeah, as a matter of fact, you can almost take it a little faurther than that, bill the lodge eng end has been drifg the short end is most closely associated with the fed. Now, if you look at all the spreads, the 2s to 10s join 30s minus 5s the flattest in ten years. Last time two year note yields were here was 2008 so, yes, from the standpoint of the markets, the transition seems to not only have any detrimental effects, by the way the markets trading, they just have the general assumption that everythings going to carry on in the stencil that janet yellen has begun. The Balance Sheet idea, with regard to making it smaller. The ongoing, if not, you know, so many rate hikes a year not on