Lacqu lacquer. Heres what else is happening this hour. Stocks in the green as we get closer to the weekend. S p 500 higher. 25 along with the nasdaq and dow. Led by big gains. Mylan having lows after releetsing a report medicaid grossly overpaid for epipen drug. Young brands seeing a 460 million stake in china unit in a unit of alibaba. Very busy two hours ahead. Including jobs report. Some are calling a dud. Its great. Loved it. The u. S. Economy adding a weaker than expected, 151,000 new jobs last month. Begin with comments from the Federal Reserve and sees the leaseman. Couple guys speaking next week. A week from tuesday, blackout period. Very much on the hawkish side of things. Rates should be significantly higher given look at variety of rules out there. He points out the recent job growth has been about double the population growth. Thats enough when youre at full employment. Inflation he says is the likely to lift. Benchmark rates for the Federal Reserve. The data is consistent with inflammation moving back. He points out there, quote, disturbing and gape at this comment right here. Disturbing similarities now between the 1960s and 70s when bad fed policy led to inflation. Cnbc rapid update. The only average on the street of not one model, but all of the models out there, we are running 2. 9 given todays better trade data and other data we have this morning. Not the payroll, but the track accident forecast of 0. 1 with a range of 2. 5 to 1. Also up a tick to 1. 3 and take a look where your favorite economist might be as to that i recall gdp outlook. Hes got the top of this number, 4 bnt 1 . The atlanta fed at 3. 5. Morgan stanley at 3. 3. Heres the numbers were all tag about. Was it a dud. Was it not a dud. Nonform at 151 now. You can still love a dud. Thats possible. Unemployment 4. 9 . Hourly wages not as high as expected. Heres the debate on the street. These numbers have been moving around, folks. The fed funds futures adds gauge by reuters icon 24. 9 for september. That is down a point and a half. December is up 4 points to 54. 8 . Septembers lost is decembers gain. I think this number is right on the cusp like my birthday may 21. You can all write in on that. Depends what newspaper you read, im a gemini, tour res. Cusp of going either way on this number. Both crappy cards by the way. Neither of them really sold. I was talking about the papers. So lets talk about this. Steve stick around. Weve got bill rogers with us as well. Former Labor Department economist. He knows what hes talking about. Heres the reason why i do not believe this number was not a dud. Whats your theory. Lets not forget july was revised up from 255 toll 275. Thats a good number. Awesome number. We expect revisions. This 151 as it is, yeah, but what if we find out next month it was 200 or down. Either way its still growth. I still think thele fed is going to hike in september. Nobody cares what i have to say. Bill, what do you think. I dont think theyre going to hike in september. Thanks for coming on. Yes. The reason why i dont think is this real employment rate, this is the u 6 or. Lets explain the real Unemployment Rate. Can i do it, please. Its basically the official Unemployment Rate so the people who actively have been searching so 6 million americans, but includes two more sets of americans. Those who are working parttime, but or economic reasons that is theres not enough demand right in their communities to justify employers paying giving them full hour and a third group that is theyve stopped actively searching, but if theyre offered a job, theyd take it. When you include those two other groups you get a rate back to 10 . 9. 7 . If you do that, if you compare that 9. 7 to the late 1990s. That was a real tight labor market. 3. 9 . If you go 4. It was a fake economy in the late 90s. Were. As fake economies go, it was pretty good. If you take 1997 when we were at 4. 9 on jobless rate, the official rate, really Unemployment Rate today is 1 point higher today. Thats 3. 5 million more Americans Still looking for a job. Working parttime or want to work fulltime. I havent even got to the Labor Force Participation issue. Thats lower. Even if you adjust for people who age, its still off. To bills point, 5. 5 million open jobs. A skills gap keeping people from entering those jobs that are nicely paid, high value added type jobs. Its a bifurcated economy. It makes september a coin toss. Certain sectors doing well. The data that came out today with respect to jobs. All showing a slow down while other parts of the economy are showing a acceleration. I dont think the fed has a clear shot at raising rates in september. Again, when you look at to mr. Lackers point. When you look at the globe, this does not resemble the 60s, 70s in any way, shape, or form. The med monetized wages to lead to greater inflation. Were not in that environment. How much longer does the fed have to stay on the sidelines with coin toss data without ruining credibility and running into the point they might run out of tools. There are people on the street who feel the fed has run out of time. A year ago. Thats one answer. I think thats a really good question. One of the reasons why the fed might raise. Thats this. The Federal Reserve chair gets and you happen says the case for raises rates have strengthened. They come up with a number. 151,000. Jeff lacker is not alone thinking thats doubled the growth. Thats enough to keep the Unemployment Rate steady or declining. Stan fischer said its a possibility in september. You have guys in the committee, interesting guys, eric rosen. Hes a die yet in the dove thats worried about financial stability. And the negative consequences of rates staying low for too long. Momentum on the committee. Someone like loretta ready to raise rates. Weve got i would go with you if we saw in september that we got a for more descenders. In is big what you just talked about. You wrote on it in jackson hole. The fed is coming to grips with it will concept that if they dont do something soon, Pension Funds, annuities from Insurance Companies, grandma and grandpa arent going to get paid because youre already seeing Insurance Companies stopping writing annuities because they cant guarantee a return. Its now at this point in time. Oh, now is the time. We dont want to use that word, but. Put them at a disadvantage. Maybe youve got people from the city of chicago calling the fed and saying, guys, were in big trouble here. We need return without risking money in the stock market. So the rational behind that argument were punishing savers by having rates so low. Instead lets punish everybody else. Can i correct you on that. Let me finish first. Run the risk of creating a recession. Go upnominally. Its not like youre going to take home a big return. Im not sure about that motivation. Will i think its a strange thing because its one half of the other. At the same time, theyre inflating other asset prices such as the stock market close to record highs so they benefit in other ways. Youre punishing the saver specifically, but for Pension Funds, held by equity returns. Ron is absolutely correct that has been the argument for a very long time. The difference is i think the fed is worried its getting into or close to a place of Systemic Risk coming from this notion of the Pension Funds being incapable of making their numbers. Correct. And coming through with promises. For me a months ago we were having the same conversation, i was very, very staunchly against seeing rates increase, but im sort of warming up to this notion we are getting clearly unstable. If you can take back a little bit of the easing and still be easy, i think theres opportunity for the fed to do that. I dont know if they avail themss to the opportunity. Youre going to trade roughly 6 return in the stock market for fixed income. Yes. And that does that solves what. Gets you out of the way to invest in stocks. A large percent of portfolio is mandated to fixed income. Pensions. Some. No. They write their own rules. If you can find me a pension fund, no. Of course not. Doesnt that start to move them back to the point what youre raising if we go into a recession, there are no otherle tools. All this points to september hike. You guys are having a spectacular discussion. Im getting the heat over here. The rig counts are out. And we have one. Look at the graphic we have. Our team is the best in the business. If youreradio, its a pretty graphic. Thats going to go up by one you can see the progression. We always talk oil. We rarely talk nat gas which is up seven rigs. You think we have too much oil. We have way too much natural gas, but one rig, thats 40 jobs. That should help the next jobs report. After battling into florida, hurricane hermine down to a tropical storm, but still doing damage. Hey, thats right. Hermine is definitely picking up pace here. The wind is getting notably stronger and take a look at this. Were already starting to see damage from the stronger gust. Tree basically broke apart just a short while ago, but the biggest worry here along the coast is flooding. We could see as much as 15 inches of rainfall in some isolated areas as the storm moves east and north. Georgias governor has declared state of emergency in 56 counties. Were also seeing multiple counties under state of emergency in North Carolina and florida. Phil mickelson at least one storm related death so far. Thats marron county and was confirmed. Tens of thousands only epeople without power in that state. Throughout the region weve got schools and businesses closed. Even if port of savannah, which is the largest fourth largest port in the u. S. Has been closed. Seeing a similar situation two hours north of here. Charleston, that port was closed a while ago as well. Back over to you. Still ahead, Hillary Clintons plan to come back sky high drug prices. What impact could it have on the industry. One supporters joins us next. Comfort food. Youve had a good long run. But your time is over. Its time for something new. Something simple. Grown right here in california with absolutely no antibiotics ever. Food were comfortable eating. Making. Serving. This is the new comfort food. And it starts with foster farms simply raised chicken. California grown with no antibiotics ever. Lets get comfortable with our food again. Great time for a shiny floor wax, no . Not if you just put the finishing touches on your latest masterpiece. Timings important. Comcast business knows that. Thats why you can schedule an installation at a time that works for you. Even late at night, or on the weekend, if thats what you need. Because you have enough to worry about. I did not see that coming. Dont deal with disruptions. Get Better Internet installed on your schedule. Comcast business. Built for business. Breaking news now. Fbi releasing documents from Hillary Clintons server. Digging into it. Going to get more details to you as soon as we get more details. Milan shares are close to session lows. Put out a report mylan might have misclassified epipen under medica medicaid. Follows a big move from the Clinton Campaign today. Clinton targeting quote, unjustified increases on long available drugs by setting a Consumer Response Team to monitor price hikes. Make alternatives available and goes fines on the Drug Companies. Senator amy joins us now. How would you go about for instance determining what is an egregious price hike and when the government should actually step in. I think what shes talking about is basically a swat team here when youve got all this alphabet soup of agencies. Fda, what she is staying is lets get people together that actually are monitoring the drug prices so instead of the response of people like me going on, im outraged and getting a letter and asking questions. Why dont we methodically go there drug prices and when you have a case like mylan with epipen, out of sink from 100 to 600. And actually respond more methodically by either allowing in on an emergency room basis drugs from other countries, thats encouraging competition. Something that senator mccain and i have put forth. Its a bi partisan proposal. Weve talked about that and also as she said today some increased fines and penalties. We need incentives to stop them from doing this. I think there are a few people out there who will say drug prices should shoot to the sky as far as they should go. In theory such a swat team, but the devils in the detail senator. In terms of this group of people, how do they go about . How would you go about . How would you direct this team, for instance to find for what is egregious out there . A percent increase thats going to trigger action at this point. Do you go through product portfolios of the Major Pharma Companies and say this is too high, this is high. This is oeng. How does it work . What youre doing here you would knee economists involved and experts in the area. Looking at areas sure theres production and invasion changes that cause price increase. Look at that. The value of the patient. The value to the customer, but we cant have the situation continue where were just responding years later and suddenly realizing that it will prices have gone up or what we just discovered today after a few of us and i lead the way asking a letter in a letter to cms, whats happening with how much the government is paying mylan with medicaid and as chip and with the Medicare Program and out of the blue we find out, oh, they probably misclassified this so your state alone, senator, to me is this year alone 4 million is owed back from mylan. How would it work . Drugs are not commodities. When theyre developed anyway. What are you going to do . Have government workers go into a form suit cal company and say we need to know how much you spent to develop this product and tell you how much youre going to charge for it. How would it work . Some drugs cost hundreds of millions of dollars to develop. Some you spend 100 million on and you get nothing for it in the end. How this would work is looking at the trajectory of price increases. Instead of having five different agencies. And i have seen this work in government when weve tackled a problem like tourism and looking at how we make it easier. I dont think its bad instead of just having it come out of the news, to figure out whats happening with the markets prices and. Its not just coming out in the news. To be fair. Nobody is trying to defend any side here. Just trying to get some answers. It doesnt come out in the news. The mylan epipen price increases happened over years. It wasnt major nigovernight. The state of minnesota has been paying increased prices every single year, but now saying you overcharged. What happened in your own state to go undetected and now it becomes some sort of rallying cry to regulate the drug industry. In my mind, your basically making the case for hillarys plan. What youre saying is all that data is out there, but no one is doing anything about it. Lets get negotiation on Medicare Part d, which sh proposed over a year ago. Lets stop the pay for delay deals that senator grassley and i have a bill to do. Lets get suspicion in from other countries and then lets have better enforcement. All that is about her plan today. Enforcement when we start seeing these outrageous prices. You have to look at the last year where shesle actually been taking this on. Put forward our not wild ideas. Ideas that are supported by a number of republicans like grassly and mccain and stop the basically lets be honest, your pharma has been stopping proposals from advancing in congress and i would love to have a president that is taking this on and getting it done. Senator, again, heres an article in the wall street journal. Drug prices rise despite calls for cuts. Talks about how over five years prices went up eight percent thachlt was written in march of 2011. Five and a half years ago. And yet now suddenly its this crisis. My point is that in 2003 before your time in senate. We had hearings about housing and mortgages and fannie mae was out of control. Guess what, nothing got done and the housing bubble collapsed. How do we know this m Time Congress is going to do something. Congress has been complaining about this for years, but has done nothing for years. Every time i try to get a vote or try to move one of these bills, im stopped in my tracks. Im sick of it. Who is stopping you. You cannot get votes on these things because theres a lot of people rely beholden too far ma and dont want the bims to move forward. That is the fact. Youre saying pharmaceutical lobbying efforts. Lets be clear with what youre saying. Pharmaceutical lobbying efforts may be delaying votes in congress. Yes, the facts you have someone running for president who is talking about this in a bigger way than weve seen before with some specific proposals with penalties and fines and the fact we now have the american publics attention on this with a life saving product like epipen that so many kids care around in their back packs. Thats making a different, yes. You look turned hood of one drug company, and believe me its not just mylan and start seeing the stuff going on with medicaid overcharging, its going to change the directy of this issue. So as horrible as the experience has been, for me its a silver lining. Im all ready to go on this. A lot of people are too. We simply cannot afford to pay these prices. Ask the Insurance Companies. Theyre screwed be this too. Increased prices being paid by all taxpayers. Blue cross of minnesota dropping out of the Affordable Care act because of price. Lost what, 260 million. Yes. Is any bone in your body that concern overregulation of the drug industry will result in Less Research and development and fewer life saving drugs reaching the market. Thats why we go the approach secretary clinton has suggested here. Looking at and not taking on every increase in the country. Of course not, but looking at the outrageous policies. Putting people on notice that people are going to start looking at these in a more aggressive way. We dont want to save the life saving drug industry. Its one of