Inventory restocking will boost the second half of the year resulting in growth that exceeds 2 . Commercial real estate, the multifamily units, thinking theyre a ticking time bomb for leveraged institution. I happen to think hes on something with respect to overbuilding, but the notion that our economy is on fire and jobs are near full employment is absolutely nuts. I still dont think the feds going to hike before the election but i think december is in play. That said, there is no inflation scare and wages are not moving fast enough to be velocity of money. I see this as a hand fisted way of getting investors ready for a hike, perhaps december, certainly 2017. Lets face it, the lost integrity is doing damage reputation to the fed beyond the minds of many to be repaired. Joining me Veronica Dagher and ross peters. You think its doing pretty well, but the economy that rosengren painted was like utopia. This is another example of irresponsible and inept behavior on the fed. He came out today to rattle Financial Markets and he was quite successful. In reality, suppose they raise rates a quarter point. The stock market can surely sustain a 1 federal funds rate. This is an absurd situation. People are overreacting, but the fed has proven over and over again just simply inept in managing expectations. Liz heres the thing, though, veronica. The easy way its explained by bears on tv. Been waiting for this day. Is that the markets afraid of a rate hike. I agree with peter. I think what the market is afraid of as the Federal Reserve doesnt know how to read the tea leaves, cant put a finger in the air, that says theyre going to use data to make their decisions, look at the data. Most recent jobs report was a dud. Ism numbers from manufacturing and nonmanufacturing were dusd. What could rosengren be seeing . Thats the milliondollar question, trilliondollar question. So much uncertainty and the market hates the uncertainty and what we hear from market participants, what concerns them so much about this is there is this wondering whats the strategy . Whats the endgame . Do they know what their strategy is . It seems to be such a divided fed to begin with, very unsettling for investors. What to we do . Were waiting and seeing, what is the data point thats going to swing in the opposite direction. Charles theres no point they boxed up thousands of dollars. Down almost 400 dow points today. The vix which is a gauge on fear, five days up 46 , investors calling it up. They want to know what to do. A tough weekend for you. What are you thinking on monday . Well, i think that this is a big overreaction from fed officials who should not be allowed to speak any longer. Clearly irresponsible and incapable of creating confidence to make a decision. Its amazing that the government goes out and hurts the same economy they want to do well with just their stupid comments. He hasnt been outside . Theres plenty of room for the economy to improve. Zero inflation. The 10year is at 1. 67 which is what it is in the financial crisis and this guy things the economy is 100 great. I think the economy is improving but keep it in perspective. Were at the beginning of the improvement and need to let this run for sometime. Charles peter, the Federal Reserve has boxed itself into a corner and perhaps should stop talking. Theyre going to have to raise rates, the market has to deal with it and, of course, its not just the fed but Central Banks around the world, what theyve done, a lot of people think theyve built the ultimate time bomb . I think Central Banks in europe and japan are doing foolish things, negative Interest Rates dont work and they should back off. As for the fed, i believe we can start gradually increasing Interest Rates, but make it clear its very gradual, and that its an improving economy, but were not a full employment. Were not facing asset bubble like the entire asset market. And if you had a consistent narrative like that instead of jerking back and forth creating false expectations over and over again, you wouldnt have the panics. Charles you know veronica, the fed has the dole mandate, i dont think any other central bank has to be concerned with jobs, inflation and the soundness of money. They can see how many people dropped out of the job market. They know the Unemployment Rate is a bogus number. The real Unemployment Rate is a doubledigit number and americans arent making as much as they were before. When they talk about inflation, no velocity of money, what are they looking at . What could have the sense of urgency that somehow we have an overheating economy . Im not sure what theyre looking at. If you talk to the people in various parts of america who havent seen a raise, who are underemployed who dropped out of the workforce because they think they are better off sitting on the couch than getting underpaid. My situation is worse than it was in 2008, i havent seen a raise but Health Care Costs have gone up, living costs are up and things are tough for me and my family. Im not sure what theyre looking at. Theyre trying to figure it out. Well see what happens. If they do raise, its going to be slowly. Most people are saying probably not september though. Charles september if you looked at market, ross, september for a lot more people today obviously as opposed to yesterday think its in play. Lets look at the market without the fed, ross, its a little extended based on historic norms based on trailing p e ratios, top line growth anemic, almost nonexistence, we almost got there this quarter. Profits manipulated because of the buybacks, how does the market justify going higher from here . Well, a lot of the decline weve seen in earnings was related to Energy Companies. When we see the earnings coming back, a lot of the increase in the markets are going to be more sector related than overall market related, and we really like the Energy Sector right now. I think theres a lot of opportunity here because as earnings normalize for the Energy Companies and they start reporting huge losses, were going to see a jump in s p earnings next year over this year, so it does justify current multiples if we can continue with low rates and the current projections for earnings. So we think theres areas of markets that are attractive, you got to be a stock picker here, you cant just buy the s p. Charles most people arent, peter i ask you quickly, donald trump talked about the false economy, the role of the Federal Reserve, you are a big donald trump fan. Are you concerned what we saw today is an example of what hes warning about . Absolutely. How can you manage the economy as president of the United States if you got a herd of cats running in all direction at the fed. And cats that people will listen to. Thats the basic problem . My feeling is the stock market will improve. We can justify higher valuations, ive written about that, and well get through this. But the fed will likely give us a preview of a december rate increase. Charles a room of long tailed cats, a room of rocking chairs with long tailed cats. Thank you very much, have a great weekend. Up next, Congress Passed a bipartisan bill allowing 9 11 victims families to sue the saudi government. Its a serious deal. Were going to discuss it next. Right by our customers. Y,s usg whos with me . Im in. Im in. Im in. Im in. One, two, wait, wait. Wait wheres tina . Doing the hand thing . Yep we are all in for our customers. Ally. Do it right. We are all in for our customers. 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Built for business. Charles were just 48 hours away from the 15th anniversary of the deadliest terror attack in american history, september 11th, 2001, and america faces security threats on a number of fronts. A video appeared online of the leader of al qaeda reportedly speaking in arabic saying, quote, we mark in these days the passage of nearly 15 years since the blessed invasions in washington, new york and pennsylvania. The video comes as debate rages at home as to how best combat the growing threat of isis . In a most recent fox news poll shows 54 of American Voters feel the u. S. Is less safe today than it was before 9 11. Joining me ron desantis, member of the House Foreign Affairs committee. Congressman, thanks for joining me. It speaks volume that americans feel so unsafe, this far after or since 9 11, doesnt it . Well, it does, but i think that theres justification for, it charles, if you look now, there are more islamic jihadists operating under a much wider berth of territory than september 11th. Osama bin laden hatched that plot in afghanistan. You have terrorists in afghanistan, terrorists in iraq, have you terrorists in northern africa, you have terrorists in central africa. Obviously a lot of homegrown terrorists in western europe and the Islamic Republic of iran has been empowered with the unprecedented iran deal, there is justification for the feeling. Charles this is one of the key differences between the two president ial candidates, Hillary Clinton saying no troops, boots on the ground, hasnt made the distinction between the forces on the ground already and combat force. Ill give her that is the benefit that is what she is suggesting and donald trump wants to meet with the commanders, but in the past seemed hes willing to put troops in, perhaps overwhelming force to get the job done once and for all. How do you see it playing out . This is a battle many say could go on for a long time if were not decisive . Hillary is ham strung by obamas policy, pledged to follow the policies, the policies are in effect. She does things with the Ground Troops that annoy me. What she said in the past is i wont use Ground Troops, only special forces, as if they dont count as boots on the ground. When you send special forces operations, they have support personnel there. The distinction shes drawing doesnt make sense, she doesnt want to say she would support anyone on the ground. Donald trump has more freedom to say this, he can get the best generals together and come up with a different approach it make progress in the fight. Charles we came in this morning to news that north korea detonated their most powerful Nuclear Warhead to date, and we know that their Missile Technology is better and better. Ed royce who is in charge of your committee talked about aggressively enforcing the sanctions that are out there. Is that going to be enough . What has to be done to stop these bad actors . Particularly the more belligerent ones like the one in north korea . Unfortunately, i think not just north korea, iran, Vladimir Putin and other people are looking and they have another four to five months of this administration. So i think youre going to see more activity like this because they know that this is the time to do it. I think we absolutely should do the toughest possible sanctions on north korea, but theyve been being provocative for a long time as long as the Obama Administration is in power. I think theyll continue. Charles with all due respect, then, what happens if they if they dont react . Millions of people died there from starvation. This is the only thing theyve got going for them. You have a maniac in charge. What does america do when they have a nuke and put it on a naval missile that can hit alaska or california. They make money in the drug trade and Money Laundering with illicit endeavors, focusing on that is good, that chokes the regime and not as much choking the American People. That regime is responsible for starving the millions and millions of people who are effectively imprisoned in the communist state. Charles they love the luxury goods, the hand bags and the premium liquor. Choke them any way we can. Have a great weekend, appreciate you coming on the show. Thanks, you, too. Charles National Security in the wake of september 11th, how will the candidates handle this will the candidates handle this fight against isis an is it a professor who never stops being a student . Is it a caregiver determined to take care of her own . 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They dont agree on everything, but together they represent a great deal of expertise, experiences and lessons learned. Charles Hillary Clinton today meeting with a group of former National Security officials. Former cia director David Petraeus among them and also former george w. Bush Homeland Security chief michael chertoff, and after the meeting spoke with the media, the Clinton Campaign appears to be showing off her Foreign Policy credibility and move past the defensive performance she had with the commander in chief forum. Im joined by wendy long, Jessica Tarlov, adam goodman and steve rogers. Let me start with you, steve rogers, you know something about this area of Foreign Policy. Hillary clinton meeting with such a Diverse Group of people does, that give her any credibility with respect to the military and perhaps what she has planned if she wins the white house . Charles she not only needs to have credibility in the eyes of American People but needs credibility in the eyes of foreign leaders. Look, you look at iraq, afghanistan, libya, look at russia, look at china. I could go down the list of countries. She who has admitted shes going to carry on obamas policies has allowed a situation to develop worldwide where the leaders of the world no longer respect her and furthermore, she is a National Security risk and im sure well get into that later with the emails. Charles wendy, i listened to her, a little to steves point, trying to distance herself a bit from president obama and even her own track record to a certain degree, get a redo, if you will. Thats a nice little two step if you can do it. The reset button. Im sure shell try to do that. Shes got to dance herself. The obama record is abysmal. Charles she certainly knows the lingo. Because she has experience. Thats what it is. Thats what it is. Charles the experience people are saying wasnt a good one. Absolutely. And i think its fair to pick apart her record. Thats what donald trump should have been doing instead of calling obama the founder of isis and her the cofounder. You listed off a lot of countries, you are talking about the leaders who respect her and people who voiced concern already about donald trump being our president. There is a rea