 Welcome everybody. I'm Neil Cavito and this is your world and it is one thing for a president to go after business It is quite another for a president to give the usually independent federal reserve the business But today Donald Trump did just that telling CNBC's Joe Kernan that when it came to the Fed He was well fed up specifically the president saying he was not happy Bemoaning that every time the economy strengthens Jerome Powell and company want to raise rates again Now normally presidents grudgingly hint at their disapproval when rates are going up rarely do they actually say it But as Kevin Cork reports most presidents are not this president. I guess not right Kevin Yeah, no doubt about that. Listen when he said he was not thrilled that should tell you two things Neil first of all The president once again is unvarnished in his criticism of all things Washington And I think this is probably the most unconventional That we have seen with respect to monetary policy as you point out I think accurately listen you can't take shots at Jerome Powell You should really just stay clear of it now understand this the second thing It tells you is the pressure will be applied directly from the White House in a very subtle way because as you heard The president suggests listen, he feels like the Fed is Undercutting his efforts to grow the economy He said that look I don't like all of this work that we're putting into the economy and then I see the rates going up As you know presidents have long declined to comment on the Fed's actions out of respect of the Independence of the institution also to avoid any hint of political influence over the nation's monetary supply Let me share just a bit of what White House officials are telling us about this today Lindsay Walters actually was kind enough to send us this statement She said of course the president respects the independence of the Fed as he has said he considers Fed Fed chair Jerome Powell a very good man And he went on to add this and that he is not interfering with Fed policy decisions. Ah, ha, ha It continues. I'm letting them do what they feel is best She went on to say the president's views on interest rates are well known his comments today are a Reiteration of those long-held positions and public comments All right, now I'm gonna make this really easy for the folks watching at home Winking a nod Tap inside of the nose, you know exactly what the president is doing here. He is saying without saying Hey Jerome back off Neil You know if I dream a genie had done that I mean, I don't want to go there great Barbara even Would have been a disaster. All right, Kevin cork. Thank you very very much Well, you know, this is not unusual for presidents Kevin says to go after business JFK went after the steel industry. We all remember that President Obama did go after Wall Street oil guys as well But no president at least has verbally put it out there Hey, you on the Federal Reserve hiking rates in the middle of this I'd rather you not and I'm upset when you do They think it believe it not a president in the past when this has been happening has welcomed these developments Melissa Armell is with stocks wish and Fox Business Networks did revolting here as well Melissa on this Did it rattly because of the corner wall and broad stocks were ended up at the lows of the day on the idea that the president Is jaw-boning the Fed and maybe forcing them into a corner. What do you think? Yeah, a lot of time the market does react whenever the Fed chairman speaks or anything about the Fed chairman or anything about a Trump tweet, so I wasn't really surprised and actually the market held up pretty well. We've been rallying. We've had a nice rally We've gotten through some of those areas in the S&P But I think the reason that Trump said this is because a couple days ago in Tuesday Jerome Powell came out and said he thinks the tariffs when the beige book came out are to protectionist views and are gonna hurt the economy and this is Anything you say against Trump. This was Trump's way of going and he went right after him Then it said something to hit and it was gutsy and it was Now of course the Fed is an autonomous kind of independent being of course the as you know did it during the campaign Donald Trump was quite critical of that But it is what it is. It's risky taking it on. Where's this all going? Well, I actually like what Melissa said about worried about trade wars trade tips becoming trade wars and Those are legitimate concerns and I feel like as far as investors go. That's where people are worried We even heard from the IMF two days ago saying listen if the trade tips become trade wars There's going to be something like 450 billion dollars Subtracted from the global economy by 2020 So I do think you're right that perhaps because chairman Powell did speak about global trade tensions That president Trump answered in this way. Maybe hey if you're gonna be in my backyard, maybe I'll be in your backyard But now people are gonna read into everything I sometimes think we over read these things but Melissa I'm wondering that if the Federal Reserve only hikes rates one more time this year rather than the two that was The consensus and might still be for a lot of people are gonna be oh my gosh They're doing the president's bidding when in fact there they might have just changed their view well Well, nobody will know but right now they're scheduled. I guess are slated two more times But if they don't I don't think the markets are gonna react negatively So in that sense if they did do what Trump said is it really negative thing and look at all the things It's happening right now. We were talking about Trump comes out and said don't you dare raise drug prices or somebody that affected all of a sudden Now these companies are not raising drug prices and look what he's done. He's helped bring money back with the repatriation tax He's helped companies have given up It's a method to this and it's working data one thing that's been said is this is not a very laissez faire president that he will use The bully pulpit and the White House to change behavior to change trade policies that rattles some but they I think with a Wink and a nod they hope that he gets what he wants without this coming to a full-blown trade war at the very least He will not filter his own opinion out in the way that other presidents have in the past And I mean even that reaction to the interview that he gave on the other and another network Saying basically I'd be saying this if I were a private citizen and okay fine now I'm president, but I still have the same opinion I do think where the investors tend to be focused though are on the right hikes to your point We're never gonna know I guess for sure if the Fed changes its trajectory I have a hard time believing that Fed chairman Powell would change the trajectory based on just some kind of off-the-cuff comments But he would be aware of the pressure right and he was telling at CBC still current about this that he still thinks highly I think I'm paraphrasing here Good man, you know But that does continue a pattern does that pattern of sort of maybe for all right Intentions and maybe getting all the right results is that body you mean Trump's pattern of saying things that he thinks and creating then I think he's gonna continue doing it. He's very hands-on. He's more hands-on than any place like that or dislike it I do I do like it. I do like it because I'm not a political person. Okay. I'm just a regular person I'm looking at the person that doesn't like government interference, but you're well I mean like I said, I don't really want rates to go up as regular person. You know, it's a balance I don't even if they're justified going up justified slowly Slowly going up with your own bank stocks because that's yeah, but I mean you have to look at it I don't want interest rates to go up if I want to buy a house to have credit cards So it like I said being an individual then what you do with business you have to mirror the two Okay, because that was really the group that traded down right? It was it was and again We finished in such a low see the doubt down about 134 points, but you could time this really second-by-second because Again as Melissa indicated it changes nightly and the markets themselves, of course I think that's be about by the 4% this year the Dow has been relatively flat But of course a toward pace all prior to this so we'll see what happens right now is that