>> IT WAS KIND OF LIKE OZZIE SMITH SAID, BASEBALL'S BEEN A GREAT PART OF MY LIFE, EVER SINCE I WAS FIVE YEARS OLD, I'M 35 YEARS OLD IN FRONT OF YOU NOW, AND I'VE PLAYED BASEBALL, IT'S BEEN A GREAT PART OF MY LIFE.

BUT NOW IT'S PART TO CLOSE THIS PART OF MY LIFE.

KIRBY PUCKETT'S GOING TO BE ALL RIGHT, DON'T WORRY ABOUT ME.

♪ >> Eric: MORE TARIFF WHIPLASH OUT OF WASHINGTON, D.C., THIS WEEK.

A U.S. JOBS REPORT CAME OUT OVER THE JULY 4TH HOLIDAY THAT WAS BETTER THAN EXPECTED.

CLOSER TO HOME, MINNESOTA CEOS RANG THE OPENING BELL ON WALL STREET THURSDAY MORNING AS MANY BIG COMPANIES HERE IN THE STATE ARE CALLING MORE WORKERS BACK TO THE OFFICE.

LOTS OF SUMMERTIME ECONOMIC FODDER FOR LOUIS JOHNSTON WHEN HE'S NOT HERE WITH US IN STUDIO B, JOHNSTON TEACHES ECONOMICS AT THE COLLEGE OF ST. BEN'S AND ST. JOHN'S UNIVERSITY.

SAY, IS JEROME POWELL GONNA RETIRE FROM THE CHAIR OF THE FED AND IF HE DOES, WHAT'S THE MEANING OF THAT IF ANY?

>> HE WILL NOT RETIRE.

IF HE'S GOING TO BE, IF HE'S GOING TO LEAVE HE'S GOING TO BE PUSHED OUT.

HE HAS MADE IT CLEAR THAT HE'S GOING TO SERVE TO THE END OF HIS TERM AS CHAIR AND IN FACT HE IS A MEMBER OF THE BOARD OF GOVERNORS, EVEN IF HE'S NOT CHAIR, AND THAT EXTENDS PAST HIS TERM AS CHAIR.

, WHY IS THAT IMPORTANT?

KIND OF IN THE WEEDS?

>> HE COULD STAY ON THE BOARD FOR QUITE A WHILE NOW.

>> Eric: IS THERE FIGHT OF WHAT TO DO OING FORWARD WITH INTEREST RATES WITHIN THE FED?

>> NO, I DON'T THINK THERE IS.

I THINK THEY'VE GOT A PRETTY CLEAR PICTURE THAT INFLATION IS A LITTLE BIT OVER 2%, THE ECONOMY IS RUNNING ALONG AT ABOUT THE LEVEL THAT YOU'D WANT IT TO.

AND SO ABOUT 4 AND A ALF TO 4% INTEREST RATES, THOSE ARE ABOUT RIGHT.

THEY THINK THAT'S RIGHT.

CLEARLY PRESIDENT TRUMP DISAGREES.

>> Cathy: SOMEBODY ASKED ME THE OTHER AY HOW IS THE STOCK MARKET?

MEMBER IT WAS ROYALING AND IT SEEMS LIKE IT'S BEEN QUIET?

WHERE ARE WE IN THIS?

>> WELL, A BIG PART OF IT WAS WITH THE LIBERATION DAY TARIFFS.

THAT SENT THE STOCK MARKET INTO A TIZZY, THEY WERE LIKE ARE THEY GOING UP, ARE THEY GOING DOWN, WHAT'S GONNA HAPPEN.

AND WITH THE PAUSE THEY'VE BASICALLY HAD THREE MONTHS IT KIND OF SAY, ALL RIGHT, HE'S GONNA RAISE TARIFFS, THE ONLY QUESTION IS BY HOW MUCH.

IT'S GOING TO BE QUITE A BIT, THOUGH.

TEN, 20, 30, IN SOME CASES 50% ON THIS NEW ONE ON COPPER.

WE'LL BUILD THAT INTO OUR FORECASTS.

WE DON'T LIKE IT BUT, OKAY, THERE IT IS.

SO HE UNCERTAINTY IN A SENSE HAS CLEARED A LITTLE BIT.

>> Eric: MINNESOTA BUSINESS PARTNERSHIP IS PROMOTING SOMETHING CALLED BUSINESS HEADQUARTER ECONOMY.

>> YES.

>> Eric: TELL US ABOUT THAT.

>> WELL, THERE'S A LOT OF WORK A PROFESSOR AT THE UNIVERSITY OF MINNESOTA MILES SHAVER HAS DONE A WONDERFUL BOOK CALLED "THE HEADQUARTERS ECONOMY."

ONE OF THE THINGS ABOUT THE TWIN CITIES AND MINNESOTA MORE GENERALLY IS THAT WE HAVE AN ECOSYSTEM OF PEOPLE WHO CAN MOVE FROM ONE BUSINESS TO THE OTHER.

THEY HAVE SKILLS IN FINANCE, ACCOUNTING, TECHNOLOGY AREAS, YOU NAME IT, AND THEY CAN APPLY IT IN RETAIL, THEY CAN APPLY IT IN MEDICAL DEVICES, THEY CAN APPLY IT IN PACKAGED FOOD AND THINGS LIKE THAT.

AND SO YOU CAN CREATE THESE HEADQUARTERS -- >> Eric: WE HAVE ABSENTEE OWNERS THAT LIVE SOMEWHERE ELSE?

>> WELL, THAT'S THE BIG QUESTION RIGHT NOW.

IS ARE WE GOING TO HAVE BUSINESSES THAT ARE REALLY CENTERED IN MINNESOTA ARE THEY JUST HEADQUARTERED HERE WHERE THE PEOPLE AND THE REST OF THE BUSINESS IS OUTSIDE OF THE TWIN CITIES AND OUTSIDE OF MINNESOTA.

>> Cathy: WHAT DOES THAT DO?

>> WELL, I THINK IT MAKES A BIG DIFFERENCE TO THE QUALITY OF LIFE.

SO FOR EXAMPLE IF YOU THINK OF DAYTON'S WHEN IT USED TO BE OR TARGET WHEN IT USED TO BE DAYTON'S, THEIR PHILANTHROPY AND A LOT OF IT WAS FOCUSED ON THE TWIN CITIES AND ON MINNESOTA.

WELL, NOW TARGET DOESN'T DO THAT.

TARGET HAS PHILANTHROPY THAT'S BASED ON ALL OF ITS STORES ALL OVER THE UNITED STATES PRIMARILY.

SO WHETHER THE COMPANY IS FOCUSED ON OUR AREA OR JUST BASED HERE CAN MAKE A BIG DIFFERENCE TO THE QUALITY OF LIFE.

>> Cathy: SAY, I WANT TO ASK YOU ABOUT THE JOB REPORTS THAT CAME OUT.

WHAT DID YOU THINK OF IT?

>> I WAS VERY HAPPY TO SEE IT.

IT WAS 170,000 JOBS OVERALL AT THE NATIONAL LEVEL.

ONE OF THE THINGS THAT WAS INTERESTING, THOUGH, WAS GOVERNMENT JOBS HAVE DROPPED.

THE PRIVATE SECTOR IS CONTINUING TO RISE.

THE QUESTION IS IS THE PRIVATE SECTOR GOING TO CONTINUE TO RISE AT THE SAME TIME THAT THE GOVERNMENT'S GOING DOWN.

IT'S HARD TO TELL A LOT OF THE STUFF THAT'S SUPPORTING THE PRIVATE ECONOMY, YOU KNOW, SCIENTIFIC RESEARCH, DATA GATHERING, STUFF LIKE THAT, THAT'S PART F WHERE THOSE JOBS THAT ARE GOING AWAY, IS THAT GONNA MAKE IT HARDER TO DO BUSINESS?

>> Eric: TARIFFS.

>> TARIFFS.

BAD THING, I WISH THEY WEREN'T THERE.

>> Eric: GETTING A UNCH OF INFLUX OF MONEY, RIGHT?

>> WELL, WE'RE GETTING MONEY FOR IT BUT IS IT WORTH IT?

WHAT I'M REALLY WORRIED ABOUT IS THAT WE ARE EALLY HURTING OUR LONG-TERM PROSPECTS.

WE'RE MESSING UP OUR INTERNATIONAL RELATIONS IN PARTICULAR.

AND THE INTERNATIONAL ECONOMY BENEFITS US.

IT'S NOT A DRAIN ON S, IT'S A BENEFIT.

AND ESPECIALLY FOR MINNESOTA WHEN THE INTERNATIONAL ECONOMY DOES WELL AND MINNESOTA'S PART OF IT, E PROSPER.

PERIODS LIKE THE 1920s, 1930s INTO THE 1940s WHEN THE INTERNATIONAL ECONOMY WENT DOWN, MINNESOTA WENT BELOW AVERAGE.

SO I'M REALLY WORRIED ABOUT THAT.

>> Eric: I HEAR THE BELL.

>> Cathy: GOOD TO HAVE YOU HERE.

>> THANK YOU.

>> Eric: THANKS FOR COMING OVER.

>> YOU'RE WELCOME.

♪