Welcome to Worldwide Exchange, im wilfred frost. And im seema mody. We are taking you back with some of americas most notable black artists, right now youre listening to james brown i like that one great way to start the show. Lets get to the Market Action futures are slipping it comes off a soft day. The dow was higher yesterday the s p down by 0. 2 the nasdaq 0. 4 . A bit of a selloff in the afternoon. Not much in reaction to the fed Decision Just softness in the tech sector thats why we saw the nasdaq as the worst performer. Futures are down quite sharply 64 points for the dow. The nasdaq down another significant move, 67 points. Thats higher in percentage terms. 12 points down for the s p question marks on whether this is in relation to the announcement, reported announcement that President Trump is under investigation for obstruction of justice an update from washington on that coming up the fact that the nasdaq is leading the move down, suggests it is not that as the driver, just more tech softness. Oil prices were key yesterday. We did see the Energy Sector within the s p as the worst performer. Down 1. 8 . Oil prices fell nearly 4 on u. S. Inventory data for gasoline showing more supply than expected today things stabilized. Wti 44. 7 flat at this hour. Tenyear treasury note, we got that 25 basis point hike we saw the dollar and yield curve slip a bit ahead of the decision it recovered some ground afterwards the low on the tenyear was 2. 10 now 2. 14, but lower than the 2. 2 level weve been around for the prior week. Shifting the discussion to stocks in asia Chinas Central Bank leaving rates unchanged despite the fed rate hike. Back in march the peoples bank of china uped its overnight rate hours after the fed raised rates. This time not the case the shanghai closing flat. Hang seng down 1. 2 . The nikkei down 0. 2 , this ahead of the bank of japan meeting tomorrow in europe, the Swiss National bank announcing it is keeping Interest Rates unchanged the snb believes the swiss franc is significantly overvalued. Swiss franc up 4. 5 against the dollar year to date. The bank of england policy decision is due at 7 00 a. M. Eastern. At the same time investors are digesting retail sales figures, rising 0. 9 . Thats short of estimates. Lets look at how european equities are responding. Relatively negative across the board. Ftse 100 down 0. 7 a notable move in french equities, down nearly 1 ahead of the boe decision central bankers clearly in the spotlight. Not just the u. S. But japan tomorrow, russia as well we also had European Data in terms of the trade balance, 17. 9 billion. Consensus was 27. 1 so a bit of a fall the real reason for that softness in oil prices is playing catch up with the oil market slip yesterday after. Europe down yesterday as well. Broader markets for you. Dollar boards, which did see weakness in the dollar prior to the fed decision, almost as if we were not sure whether janet yellen would come through with the hike or not, or whether she would be expressly dovish in her statement. The dollar then recovered once we got the rate hike and Janet Yellens comments. Ended the day broadly flat this morning Dollar Strength by a third of a percent against the british pound and euro fractionally higher against the yen. Gold prices, down around 0. Up 0. 6 . Yesterday breaking a fiveday losing streak. To todays top story, the Washington Post reporting the special counsel is starting to investigate President Trump for possible obstruction of justice. Eamon javers joins us from washington with the latest good morning to you. Good morning. What can you tell us . The Washington Post story last night got all attention in washington, d. C. , all of official washington focusing on the issue of whether or not the president is under investigation personally and directly for obstruction of justice thats what the Washington Post reported last night. Let me run you through some highlights of their report with the caveat that i cant independently confirm this reporting. But it is not being denied by the president s personal lawyer or the white house what we know from the Washington Post is that theyre saying the obstruction of justice investigation into trump began days after he fired former fbi director james comey. We know the director of national intelligence, dan coates, mike rogers and his former Deputy Richard ledgett have agreed to be interviewed by muellers investigators. Investigators are look into evidence of possible financial crimes mueller, we know, is now investigating whether trump himself attempted to obstruct justice. Again, that investigation began shortly after comeys firing we have a statement here from the spokesperson forthe personal lawyer for the president saying the fbi leak of information regarding the president is outrageous, inex k inexcu inexcuseible and illegal important to note that the spokesperson is not denying that the president himself is under investigation for obstruction of justice. And implying it was the fbi who provided this information to the Washington Post. Thats not at all clear. There would be a number of people who would have had access to this information including those being interviewed as part of an obstruction of justice investigation who might be able to figure out what it is the special counsel is looking at here well wait and see whether the white house has further official reaction at the white house they have simply stopped answering questions about the russia issue and referring everything to the president s personal lawyer. I suppose the question now is time frame for all of this, also if it gets confirmed but within that we heard from the president that he would be potentially willing to testify under oath on all these sorts of issues is does this increase the likelihood that that happens you could see a Straight Line connection between the investigation of the president and the testimony of the president in that investigation. The question is how would that happen, when would that happen and what would the terms be for any testimony that the president provides i remember covering the bill clinton investigation and impeachment back in the late 90s the terms under which bill clinton sat down to talk to investigators in that situation were very narrow, very constricted. He did it on camera, but privately. Eventually we did get to see what president had said there. Thats a legal risk for a president of the united states, testifying under oath about an issue as sensitive as this one you would imagine his lawyer would go to Great Lengths to make sure that the terms of that, the timing of that are as constrained as possible. Well have to wait and see we dont have information on that quick question, the former fbi director, james comey, already told President Trump that he wasnt under investigation. How do those comments pour cold water on this report from the Washington Post . They dont. That was then this is now. The Washington Post is reporting that the investigation began after comey was fired. So he nothing that comey said about the status of any investigation months ago is necessarily applicable now the investigation could have started after comey was fired and comey would have had no way of knowing that months and months ago that is something that the white house was anxious to suggest, that the president himself was not under investigation. You saw when the president fired comey he reiterated in the letter to comey that comey had said he wasnt under investigation. This report, if confirmed, changes all that the white house wont be able to argue anymore that the president is not personally under investigation. Just quickly, rumors, albeit unsubstantiated earlier in the week that the president was considering removing Robert Mueller from his role. Is that undoff the table now because the fallout from doing that would be so big the fallout would be enormous, but i dont think its entirely off the table. I dont think we can predict where this will go the president has a sense of grievance about this investigation. It has bothered him for his entire presidency. Its something that ultimately led to the firing of comey but his aides have been warning him if he were to take that step it would be a grdramatic one legally he would have to get somebody at the department of justice to follow his order to fire the special counsel now the question is would people at the department of justice follow an order like that or would they resign in protest if the president made it . Even attempting to fire Robert Mueller could be politically treacherous for the president if it sparks a series of resignations at the department of justice eamon, thank you very much for that you bet s ares a softer this morning. Is it because of this story . Perhaps, but perhaps because the nasdaq is down more sharply than the others, suggesting more of a tech selloff the dow down 0. 3 . The s p down 0. 5 . The nasdaq over 1 for apple, alphabet and microsoft in the premarket. Markets softer across the board but tech leading the charge down another big factor is the fed. The central bank hiked Interest Rates bay quarter percentage point yesterday and unveiled plans for how it intends to trim its 4 4. 5 billion Balance SheetSteve Liesman breaks down what the latest policy move means for markets. The fed had concerns of weaker inflation and mieconomic concerns straight in the eyes and moved to raise it a quarter point any way. Most fed officials continue to forecast another rate hike this year, and three more next year fed chair janet yellen suggested that yesterdays hike was still not very aggressive. All that were doing in raising rates is moving removing a bit of accommodation heading towards a neutral pace and i see that as appropriate. Were not moving so aggressively as to put a brake on continued improvement in the labor market. Heres some of the ecommentary out there rbc saying anything but dovish barkl Barclays Says june straight ahead. So does the fed start reducing the Balance Sheet as early as september and enact a third rate hike in december or go again in december and then wait until december to cut the Balance Sheet. I think the date will show the way how hawkish the fed will be. The question on whether low unemployment and low inflation continue to run together theyre not supposed to. Many fed watchers think the fed could pull back if the inflation mick da Economic Data remains soft i asked janet yellen if she would stay on if asked by President Trump. What i said about my own situation, i fully intend to serve out my term as chair, which ends in early february i have not had conversations with the president about future plans. I do very much hope i know they have been working hard to identify appropriate nominees for the open slots and i do very much hope that there will be nominations in the not too distant future back to the rate story. We have a bit of a disagreement between the markets and the fed. Fed fund futures dont show the next rate hike priced in until march of 2018, but most think it happens before the end of this year the good news here, we have a one handle in front of the fed funds rate so it will be easier instead of the zero and being a fraction, that hasnt happened since 2008 wow amazing how long they stayed so low. With the zero in front. Lets come back to this disagreement with what investors are pricing in and what seemed to be telegraphed yesterday. Its not just that investors are not really believing that well get a second hike this year, but the shape of the yield curve so flat doesnt believe well get three next year either its hard to know what exactly is being priced in here. I think you could make an argument that the flat yield curve reflects the belief in the market that the fed carries through with this and doesnt see upside in the economy and sees lower inflation its a tricky story now. Not believing the fed was a good bet for the past several years i think after yesterday, i think the fed may have a bit more i dont know, commitment to its plan and its forecast now. It may be time to switch that bet and say i will go with what the fed is forecasting here. Not 100 if the data goes the other way, i think the fed wants to claw back what it can while the market gives it the leeway to do it despite the soft inflation number, theres a school of thought that the strong jobs picture, the labor market will indirectly help push up Consumer Prices does history, analysis of other countries that have seen similar stories say that that will work . How much time do you have what youre talking about is the great question of what they call the phillips curve the tradeoff between unemployment and inflation if you would put that chart back up, guys in the back, that low inflation problem for the fed, thats not what is supposed to happen inflation is supposed to go down, unemployment up, or the other way around theyre supposed to work inversely to each other, theyre not. You have record low unemployment, 16year lows, inflation continues to move away from the feds 2 target the fed did take notice, they said were watching it closely were not ignoring it. I think if the numbers continue to remain soft, but theres two theories, the low Unemployment Rate will cause inflation to tick back up the other is that some of the factors that have driven the Inflation Numbers down are sem prayer fact temporary factors. As far as Janet Yellens future, if she was asked to stay on, would President Trump have already been asking her about that february is not that far away. Second, is this potentially a factor in why markets are not pricing in hikes next year because of the massive swing factor that changing the fed chair could have in terms of what the board is thinking i will throw a bit of this back at you. How together does the Trump Administration seem to you in terms of its appointments . Emaculately well organized well, i went back and did some math. If you look at the past 30 years, june is the average month when a fed chair is either appointed or reappointed by a president. So thats this month its happened as late as october in the past. Thats entirely possible but the idea being that theyre not late, definitely not average, and not early here. You would think they would have it they still have the three open slots they have not filled yet. Were waiting for those appointments they have time to get this done. They have good candidates. Yellen said we know theyre working hard on it i know theyre working hard on it i heard quite a bit about whats going on in terms of them looking for people i think they have that side of it together. Im not sure why they have not named those people yet can you confirm or deny whether you have been invited to be the next fed chair . I have not. As yet. But we have until october. Its not anything i can really talk about now. Its too early to talk about that in many respects, its too early to talk about that great to have you with us nice and early thanks for having me. Still to come, stocks under pressure at this hour as the market suggests a potential probe into the president the feds latest policy decision and weakness in tech stocks. The nasdaq down almost 60 points about a percent dragging the et lower as it did yesterday. These days families want to be connected 24 7. Thats why at comcast, were always working to make our services more reliable. With technology that can update itself. And advanced Fiber Network infrastructure. New, more Reliable Equipment for your home. And a new culture built around customer service. It all adds up to our most Reliable Network ever. One that keeps you connected to what matters most. Welcome back to Worldwide Exchange. Futures pointing lower the nasdaq once again leading the market down. Down 57 points, just shy of a percent. The dow down 0. 4 . The s p down about 0. 3 other way around, dow down 0. 3 michael farr a cnbc contributor joins us again it feels like we stopped the rock in tech two days ago, but its leading the market lower again. It is i think on the heels of the fed news yesterday, markets are still trying to find a direction. U. S. Markets of course yesterday we ended up with not a bad day at all asia didnt treat that news quite as kindly. Of course prices have fallen well see how the u. S. Reacts today. I wouldnt be surprised to see a selloff early on and a rally later on in the day. Thats been a pattern weve seen over the past few months but we certainly have seen tech cracking, particularly the fang stocks in the u. S. Going lower that could continue as we get weakness in the tech sector and sector rotation as we come in to quarter end. Would you say its politics the uncertainty around washington that is impacting sentiment today . Yesterday we heard all the political noise is distracting investors, and they should focus on the fundamentals. The fact thaerning inthat earnh continues to improve its always nice to say, but i think weve had so much political noise, i dont know why this political noise would be more distracting than the constant din weve heard since well before november, well before the election. We keep looking at the economy, and we have seen the Unemployment Rate come from 4. 8 to 4. 3 . Thats a half percent jump thats a big deal. Yet as the fed is raising rates, when you look at monetary policy, you look at the direction. The directio