she says that she see's a number of encouraging signs that the economy is reviving. if the improvements continue, the said will likely raise interest rates this year. betty: that is why economists we will see see w this rate hike in september. we will get back to the testimony, but let us go to julie hyman for some of the highlights from the yellen testimony coul. julie: yellen has been queuing ofto what she said as late about the said raising rates, but not devoting went to that prospect in relatively an relatively optimistic. that if youion start liftoff in terms of beginning to raise interest rates earlier, that might allow for a more gradual path of increases. begin wait longer to

raising interest rates, it might have to be a little more aggressive with raising those interest rates. to a question, she said that every meeting is a live meeting. in other words, even meeting's upcoming that do not have scheduled press conference is afterwards, you can still see a rate increase at those meetings. there would be an unscheduled to explain thee rationale behind that rate increase. that was the more substantive highlights on the topic of rate increases. there was also a spirited exchange between she and sean duffy. duffy as well as the chairman of the house financial services committee have been requesting information from yellen and from the fed regarding the leak of information in october of 2012, allegedly leading to a special medlinby a firm called

global advisors, and intelligence firm that sells information to hedge funds and other investors. on the day before the minutes were released from september 2012, this report came out detailing what the minutes would say. there has been this ongoing investigation of that. both doffing and has sterling say that the fed has not been forthcoming. duffy says the fed is trying to sweep this under the rug and accused yellen of not being forthcoming with information. betty: thank you so much. julie hyman right there with some of the highlights. the testimony continuing could remy has been looking at how the markets are. basicallythat we are a racing those gains from earlier. ramy: nearly a racing those gains. -- you racing those gains. a racing those games. the s&p 500 just a bit higher.

the nasdaq is up just a bit higher than that. nearly 2/10 of a percent. 10 year treasury yield. it is close to the baseline this morning as chairman yellen was speaking. the dollar was also trading higher, near the highest. if we could bring that chart of, you can see it actually jump when the fed chair reiterated her call for a rate rise. see said it is at some point this year likely to happen. x and thet the vi volatility indexes rising. it was 9.5. it had been as low as 12.81. finally looking at gold. the metal is also off session lows and falling a little bit farther now. down about .8%. betty: thank you so much. ramy with the market reaction so

far. pimm: let us continue listening to janet yellen's testimony before the house financial services committee. she is testifying at capitol hill. let us listen to her comments. >> what is your response if we go back into recession with a $4.5 trillion balance sheet and zero rates? >> the time of the gentleman has expired. the chair now recognizes mr. murphy. >> thank you, chairman. chair yellen, thank you for being here. biggesture, one of the problems we have in the country is the disappearing middle class. one of the factors that is not addressed in that conversation is often housing. florida,e like mine in areas like miami and coral gables, there's a lot of growth. the members there for growth are through the roof, way better than expected.

unfortunately, folks have a 700 plus credit score and the middle to lower income families, especially a lot communities, are not experiencing this bounceback nor are they building that equity i think is important to getting to that middle class. so my question relates to regulation. i'm curious as to when you think the federal reserve will be able to finalize its list of domestic , systemically important banks so that this committee can have a 90 a better than just the $15 billion line. which american banks are making that 30 year fixed rate mortgage and the small business loans important in our committee versus the ones that are truly the most risky? i'm not sure exactly -- >> ones you intend to finalize

the list of systemically important banks? a domesticn: we have banks that have been designated -- eight domestic banks that have been designated globally and subject to enhance credential standards of dodd-frank. those banks, we have for example, subjected to a higher leverage requirement that other banks. we supervise them in a different process. enhanceill be proposing capital standards or surcharges for those eight systemically important banks. but others that are not in that important and significance sit and are subject to enhanced

capital standards and supervision. >> will you be putting that list out? --et yellen: i'm not sure what list? >> for what i just said. for the systemically important banks. it has been a lot of conversation in the committee as to whether it is a $15 billion trade line versus things that are interconnected, derivatives, etc.. is that going to be taken into consideration? janet yellen: we give special attention to all banks that are over that threshold, but they differ in terms of their characteristics. we have tried throughout supervision and regulation to the systemic footprint of the bank. banks that list of meet this criteria.

they have several that have been designated for supervision by f are also subject to enhanced supervision. >> we have had discussion as relates to employment. most economists say that 5% unemployment is high. we are pretty close there. why do you think we have not had that wage growth yet and what do you think needs to be done? janet yellen: first of all, i think there is more slack in the labor market than you would think by the 5.3% measure somewhat more. i pointed to the very high , and weunusually high detailed this in the monetary policy report, the fact that involuntary part-time employment is unusually high given the unemployment rate. so that is one factor. in addition, i think that labor

force participation -- while it has mainly declined for demographic reasons, the remains components of depressed labor force participation that does reflect a weak economy, a weak labor market, and that more people would rejoin the labor market if it were stronger. the measure of 5.3% overstates just how strong the labor market is. there are also lacks any time the labor market strengthens and wage growth picks up. >> the time of the gentleman has expired. the chair now recognizes mr. roth us. >> last week, the federal reserve approved and $18 billion bank. this would put the new entity above $200 billion for the federal reserve's final order approving the merger analyze the

financial stability applications of the merger. the federal reserve noted that the merger did not present a meaningful rate of this to the stability of the united states financial sector. and analyzing the stability applications, the federal reserve used a factor base model. based on the analysis, should we consider this analysis and endorsement by ?he federal reserve janet yellen: the staff look at the detailed circumstances surrounding the characteristics of this particular merger and reasonedarrive at a judgment and took many factors into account as to whether or not this would create a financial stability threat. and they did not just use a formulaic approach. they looked at rep. rothfus: the details of the situation. the factor based model work that this case? janet yellen: they listed a

number of factors they took into consideration. that is a useful list. rep. rothfus: chair yellen, as you know, this month marks five years since the dodd-frank back. president obama proclaim that the law would help lift our economy and leave all of us to a stronger and more prosperous future. since that time, the law has resulted in some 400 new government mandates, which research has shown reduced gross domestic product by a hundred $95 billion over the next decade or $3460 for each working age person. these costs are why more than 17 million americans are unemployed today and why a percentage of adults looking for jobs are 62%, the lowest in years. and even why bernie sanders has realted that the

assessment of unemployment and the u.s. is 10.5%. in your speech to cleveland last week, you said, "growth in real ,dp has averaged two point 25% 1.1% less than the average rate scene preceding the years of the great depression." say that the growth rate after a comparable time after the reagan recovery was 4.8%. that was a recovery mark by less regulation and lower taxes. .25%dering that average to hides2009, that number quarters where we actually contracted. for example, in both the first quarter of 2014 and first quarter of 2015, the economy actually shrank. is that correct? janet yellen: according to this this is six you have -- the statistics we have, yes. rep. rothfus: i would like to refer to a slide show by my colleagues across the iop i do

not see any growth numbers in that. an think the slide is accurate representation of the economy as gdp growth? janet yellen: it looks like the numbers you have on this chart are year-over-year numbers rather than quarterly numbers. rep. rothfus: counting the bars between 2011 and 2015, i see more than four bars there. i see quite a few bars. it is hard to see what is represented here. what i do not see are the negative quarters. janet yellen: i do not know. this is not my chart. rep. rothfus: would you agree that the chart does not show the quarters? janet yellen: i do not see the negative quarters could i see the label that says year-over-year. rep. rothfus: but you do see more than four years between 2010 and 2015. janet yellen: year-over-year often means the fourth quarter of one year over the fourth year of the previous year for the third quarter over the third

quarter of the previous year. because negative quarters are ly --quent, typical rep. rothfus: negative quarters which we also missed in this chart. given these anemic gdp numbers, when you compare to grow since 2009, you acknowledge that is a percentage less than the 25 years preceding this. this is the more accurate slide, which does show the negative quarters. growth, 2.25%,ic can you compare the deregulatory environment in the 1980's where we had 4.8% growth, do you think dodd-frank has helped the economy? janet yellen: i think not frank has led to a stronger and more resilient financial system. -- dodd-frank has led to a stronger and more resilient financial system.

years that you showed on your previous graph that where you're over your negatives was what we suffered the financial crisis. it was a huge loss in output and jobs. to have a stronger and more resilient financial system meets the odds of such a devastating episode. >> the time of the gentleman has expired good the chernow recognizes mr. heck -- the time of the joan and has expired. the chair now recognizes mr. heck. heck: that isn't accumulating n.l. of research showing long-term business formation. fear businesses are being started and fewer are living past the first year. as we all know, there is a declining number of community banks in this country. so my question to you is -- what do tou do and what can we

help community banks serve their local economies? janet yellen: community banks are really vital to local economies. i have seen this firsthand when i was in san francisco when the president at the reserve bank there. it is something we are focused on at the federal reserve. we want to see community banks thrive and know that for many different reasons this is a very difficult environment for community banks. ace of economic growth and recovery that we have had, the low interest environment is squeezing their margins. the regulatory burdens that they face have been really quite high and they are struggling with it. looking int, we are

the way that we supervise community banks to do everything within our power to reduce the regulatory burdens. i could give you a list of things that we are doing to try to minimize the burdens, more offside exams, special tailoring of our exams to the risk profile of the bank. >> if i could reclaim my time. this, spirit of congresswoman beatty asked you about what you can do specifically to help communities of color have disproportionately high unemployment rates. you indicated that you do not have specialized tools. i'm going to respectfully disagree. and othersourage you at the fed to take note of some recent research done by graduate students at m.i.t. who

indicates that when community banks branches leave census tracts where there is a concentration of either little low income or committees of color that local business lending declines precipitously, even when there are other national or international bank branches retained in that community. he tracks that it is not true with mortgage lending, but it is true with small business lending. and with all due respect, madam chair, you have merger approval authority oftentimes went to the banks are purchased and could make conditional the continuing presence of branches in those census tracts or in those neighborhoods where we have begun to document a decline. some of the little amount of time i have left, i am always interested in your opinion about what you see as the threats to

our continuing recovery. i will use this opportunity to suggest that i do not think it is as robust as it can be. i have had conversations about the output gap in the dire need for the fed to think of itself differently as it relates to investment infrastructure. i am not going to go there today with you. what do you see as the threats that could induce, or the factors that could contribute to another downturn in the economy? what are you worried about? what keeps you up at night? janet yellen: let me first start by saying that i do think the economy has improved a great deal. in a way, i am focused on the strengthen and it's good performance rather than lying awake at night about a further downturn. rep. heck: the fed has reduced the projected growth rate of the

gdp by 20% in just the last few years. to 2.3%. that is a material downward projection. the question still is -- what out there worries you? janet yellen: let me just say that writing down for projections on growth, in part, reflects the fact that productivity growth is consistently disappointing now for a number of years. for unemployment projections, they have proven more accurate than our output projections. in essence, we have had decent job growth and better job growth than you would have anticipated or we would have anticipated with weaker growth. in part, it is a reflection of quite disappointing productivity growth. >> the time of the gentleman has expired could th. the chernow mechanize is the

gentleman from arizona. -- the chair now recognizes the gentleman from arizona. >> in a couple of the hasersations here, there been the discussion of interest rate policy ultimately what it does to us in our fiscal policy. an fomc meeting, does it ever reach the level of conversation, does interest rates go back to a level of normalization and what it means to our debt and deficit. ? janet yellen: it is something our staff looks that and i have looked at. congress should expect, and this is embodied in the cbo projections, that as the economy recovers, short-term interest rates will rise. long-term interest rates already reflect that. , ifhe years go by

short-term interest rates do indeed rise with a recovering economy, long rates will move up further. this will affect the interest burden of the debt and other things will add to deficit. that is clear. but it is also true that a strengthening economy needs stronger tax receipts. you and i seet: that as obvious. i see many of the discussions around here where we are looking at an environment where reports are telling us that just in a few years that interest will equal our entire defense budget. that section of the new normal interest rate models we are heading towards. my great fear is current monetary policy ultimately emboldens us to engage in bad fiscal policy. and we are going to pay a price for that. particularly if we keep seeing the revisions on her gdp growth, we may have to deal with this much sooner than later. you shouldn: well,

be aware that interest rates are likely to arise and that will raise the interest cost of the debt that should be part of the calculation that you are making. sort of aikert: some o one-off type question and you are very kind to engage in conversation with me. i have an interest in the moneytion of the price of . more than just what the fed does with liquidity and claim on bank reserves, it is what we do tax policy wise on what is deductible and what is guaranteed. we sat down with said folks and while back and they told us that the majority, the vast majority of total debt is not including student loans. this country has full faith and applied credit. are we in the time of an absolute distortion of the price

of money and does that make your job much more difficult to use money as a communication of activity in the market? janet yellen: it is absolutely true. been listening to janet yellen yellen's testimony before the house financial services committee. froms answering questions commerce and david schweikert t -- congressman david schweikert. i am pimm fox. joining me is betty liu. michael mckee and police in a problem with it -- romowitz. lisa: where are all the other congressmemn? pimm: i know that there was an , ahange between keith republican from pennsylvania, and he was putting up a variety

of charts that seem as though chair yellen pointed out were not for the right timeframe. we have received a discussion on what year-over-year means when talking about earnings or any other metric and he moved on to another slide. [laughter] he exited the room when his time expired. having said that, anything substantive that you have heard from yellen that stands out? lisa: no. she is getting her gold award for absolutely saying nothing. they are asking some of the questions and some of them are hitting out what the market is wondering. if they do think the economy is growing at the extent that they do and they have been saying and they are so positive on the economy, why is there some doubt on whether they are going to hike rates? why not just hike it already? pimm: they do not have any

ammunition to deal with it if crisis does came up. came up with the question of what if the economy turned down against, but did not follow up. that is one of the reasons that the fed has been concerned they do not want to be in a position where the economy does turn around where they are only able to put in a qe4. betty: we are going to continue to monitor this testimony. new: by the way, lisa has a do?d -- what would yellen betty: i love it. everyone tweet that up. kim, we will say goodbye to you. we will get back with more from janet yellen. ♪

betty: welcome back. i'm betty liu. we have been following the fed chair janet yellen and her testimony all morning long to

the house financial services committee. she has said many of the same throughout she has the last few hours -- encouraging signs in the u.s. economy, the labor markets has slack still. , but it looks as if the economy is improving enough to continue or begin raising interest rates, the first since 2006. if and when it does happen, in september. i want to get a quick check of how the markets are reacting. my, whoto get back to ra is following the stock markets. coming down from the highs of the session. ramy: they happen coming down and they basically are on the flat line about two and a half hours into janet yellen's testimony. looking at the dow and it is just less than 1/10 of a percent of as well as the s&p 500 nasdaq is the biggest leader, but not by much.

ifryone is waiting to see she says anything, any clue as to one another rate rise might happen. let us take a look at the 10 year treasury right after you now and you can see that fa field has been lling. right now,the dollar there was a bump earlier this morning at 8:30 a.m. and it did rise. it is now up $97.10. and the volatility index hit its low earlier today at around the 11:00 a.m. mark. it is now around the 13 mark there. it is still down 2.4%. is also off of its session lows. you can see that as well earlier this morning. about $1100, still down for the day down two thirds of

1%. much.thank you so betty: the markets taking in janet yellen's testimony. let's get back to the testimony before the house financial services committee. >> which were then supplemented by chairman sheila bair as well. have an' tion.alousregu what policies are you going to be putting forward? it seems to me that through dodd-frank that it is a matter of shoot, then aim. now we are tried to be reactive, but our people are feeling the pain of bad policy that has come out of dodd-frank. what are you going to be doing at the fed to alleviate this? are verylen: we focused on community banks. tipton: that is what they

are worried about by the way. janet yellen: we formed a council that reaches community bankers and they come to see us twice a year. the entire board meets with them. the 12 federal onerve district versions of a regional scale of a counsel to advise these reserve banks on the factors affecting community banks. so we are listening. we are taking seriously the complaints that we hear and the specifics about our supervision and trying to be responsive. rep. tipton: i appreciate that. if i can put a little! on this. , i sat down with the community banks, they feel as if longer working with a banker but a

federal government just to be able to comply with regulations that are currently in place. , theywe may have hearings do not feel that anyone is actually listening. the stagnating and the growth of the community banks. we are listening and we are taking a series of steps that i believe are meaningful to reduce burdens, including reducing the amount of time we spend in these banks, disrupting other activities that they want to be doing, by reducing our demands for documentation and taking a more risk focused approach of exams. we try to make clear to the community banks what is relevant to them and so many of the regulations under dodd-frank where put in effect and would only a faint -- affect larger banks. rep. tipton: you do recognize

that a lot of our community banks still feel like they have to comply with these top frank relations even though we are saying it doesn't really apply to you. they are still feeling the impacts that are coming out of dodd-frank. janet yellen: there are some things that dodd-frank imposed on all firms, for example the volcker rule. that could envision their community banks being is that -- exempt from volker rule now. ourre trying to curtail limitation to minimize the burden on community banks, but they are subject to it. rep. tipton: we just introduce legislations curtailing regulations at banks and we hope you will too. getting at to be economy is moving in rural american or minority committees. asare looking at that 5.3%

out.othfus pointed the real unemployment level is 10.5%. the real problem is that what you're saying is our economy stinks right now. we are just not seeing real movement. what tools do you have left in the toolbox to simulate this? janet yellen: i would say we have gotten our economy in a much better state. low interest rates have facilitated it. the decision on our part to raise rates. no, the economy does not stink. we are closer to where we want to be and we now think the -- does notot only only tolerate, but needs higher rates. we will use monetary policy to overcome them. i want you to know that we share the goal of minimizing burden on community banks and will remain

very focused on it. that is in process play at the moment and it is focusing particularly on burdens. >> the time of the gentleman has expired. the chair now recognizes mr. ellison. you, chairwoman yellen for being here. is it regulation from dodd-frank keeping our economy -- for people who have not been able to benefit from the economy and the recovery, is it regulation causing the problem? mind, there: to my has been an increase in regulatory burden on banks. what we are doing is trying to create a healthier, safer, sounder financial system that keep credit flowing to the

economy. particularly if we ever experience a stress situation where in this financial crisis we saw banks just withdraw credit for the economy, which took a huge toll on economic activity, by having more capital and liquidity in the safer and sounder financial system, we hope that we are preventing future episodes like the devastating one that we just lived in. if there is some bird that is associated with that -- burden associated with that, the benefit is a far reduced chance of a financial crisis that will take the kind of told that you just described. rep. ellison: it has been pointed out that we have a low labor participation rate. is it because of dodd-frank? janet yellen: no.

also, we are going to have over labor forcening participation rate. first and foremost because we have an aging population and more individuals in the retirement years. this is going to continue. now i have said and my colleagues have that over and that there we think is something hding labor force participation back that reflects weakness in the economy and if this strengthens, we would expect some people who were too discouraged to look for work to move back into employment. but the major reason that we are in labortrend downward force participation is because of demographics and it will continue. bep. ellison: has the cfp that harmful to the u.s. economy

in the recovery? janet yellen: congress created the cfpb to enhance consumer protection and it has been very focused on doing that. rep. ellison: i just ask because some of my good friends, they complain about it a lot. i'm just trying to get next for opinion on whether it is a good thing or bad thing for our economy. janet yellen: so it is addressing potential consumer enhancend trying to consumer protection. rep. ellison: does a addressing consumer issues, like say the mortgage issues that we saw in that,08 period and before does that help markets operate more accurately? does it help inform it -- and

employment? janet yellen: we saw that the lending had a very harmful effect on the economy and low income communities and that burden continues to exist. inare going through a period which we are trying to undress all of the issues, including improper securitization and mortgage underwriting practices that led to that devastating experience. it is difficult to get the balance right into figure out what the best way is to design regulations. inre are always consequences terms of unintended effects of regulation. we need to be vigilant about trying to address that. rep. ellison: what about student debt? you know how big it is. is it a drag on the overall functioning of the economy? janet yellen: it has increased enormously.

i am worried about the high levels of student debt. debt that anat tha y, itidual cannot repa cannot be written off in bankruptcy. education ishand, really critical to succeeding in this economy and it is critically important to make sure that students have access to quality education so that they can get ahead. they need good information about programs and their success rates in order to avoid mistakes. >> the time of the gentleman has expired. the chair now recognizes mr. williams. >> i'm a small business owner from texas. i'm a main street guy. i'm a car dealer -- one of your favorites. i can tell you that small businesses hurting. main street america is hurting. it is hurting because

regulations, which you have heart about today, are literally choking the heart out of small businesses. earlierthat we talked about inequalities. and i would say that competition is the key. competition in business takes care of inequalities, not the federal government. and my colleagues here was asking for an expert opinion on andher dodd-frank cfpb are bad for the economy. i can tell you they are bad for the economy. they are the worst. i will be somewhat repetition here. i think it is important that we remind you where we enter our country. did you stay in questioning from cokes,cokes -- senator "i hear exactly the same things that you are saying. concerns with regulations about taxation and inserting that fiscal policy." you went on to say, "there is

more to do on the course. there has been progress in bringing down deficits in the short-term, but that a competition -- commendation of demographics and entitlement programs, we can see that over the long term deficits will rise to a levels relative to the economy." now my constituents back home in texas are very concerned about the health of our economy because it is not good. in texas, we have great things going, but it still could be better. texas is a state that is somewhat recovered since 2000 ap you have won 15 fewer community banks. you have one of five fewer credit unions. -- 105 fewer credit unions. my question -- what do you say to those immunity based institutions that former state said of th ben bernanke when these policies have at the same time failed to produce meaningful economic growth in

the community's it was instituted to serve, which further erodes their profitability? aret yellen: i've said we to do everything we possibly can to relieve burdens on community banks that had been through very difficult times. periodf all, it is a that has been very rough for the economy. it is a slow recovery and that has taken a toll on their profitability. that is the businesses you noted. , low interest rate environment net margins tend to be low. i think the low interest rate environment that we have had an policiestive monetary has served to help our economy overall and get it moving and moving back to full employment. if you compare the united states with any number of other

economies that also suffered in , weaftermath of the crisis are among the leaders in terms of how we are doing economically . in othe other countries are now pursuing the kinds of economic policies that we put into place earlier, which in a way endorse their effectiveness. rep. williams: it is hard to borrow money for small businesses. these banks are having to hire more compliance officers then loan officers. that takes money out of the system that can be loan to people like me who can hire people and create jobs. i asked him if he would slow down this dodd-frank legislation. a of it is not completed. are losing so many banks and credit unions, he said no. we are going to go 100% and take a look at it. that is a bad policy. he stated that the community banks should not face this group

knee of the same banks -- scrutiny of the same banks. i agree. that youou say in 2014 said i had community banks in my office yesterday and i heard today from kim and asking me, what do i do? we say the right thing, but what do we do? they are fearful of things that can happen and what they may not be. what would you tell these people? we talk a good game, but we do not come through. janet yellen: we are trying to make clear our supervisory expectations and we are careful with them to know what rules and regulations apply and how and what don't and to try to shield them from many of the things that larger banks have two deal with. >> the time of the gentleman has expired. the chair now recognizes the gentleman from maine.

>> thank you. i appreciate it very much. everybody wants the same thing. we want more jobs. we want higher-paying jobs. i'm a business owner like mr. williams and other folks in this room. about business owners because they grow our economy and create opportunities for our kids. , andu are in my district you talk to the owners of the paper mill or convenience store, they say the same thing could they are spending -- they say the same thing. they are spending so much time and money complying with government regulations that they cannot grow their business and hire more workers. the competitive price institute calculates that the cost of businesses in america in one year to comply with just federal government regulations is 1.9 chilean dollars. 1.9 chilean dollars. -- $1.9 trillion. these businesses pass on the

regulations in their products. our families are spending $15,000 a year for businesses to comply with government regulations. i'm sure that we can agree that businesses need to be fairly regulated, but when the -- those regulations are killing jobs, it is just not right. several years ago, with a highly littlen group with very republican support, the 2300 page dodd-frank bill was passed. since then, there have been rules of regulations and smothering our financial services industry. one part of dodd-frank is a great concern of mine. it is the too big to fail regulations. now, when you are trying to identify what banks are non-institutions, it should be designated as too big to fail,

it means the taxpayers, if they step inll have to and bail them out in we all know that there is a huge difference between large money center banks with all caps of chemicals running to our economy and asset managers, pension fund managers. they handle the retirement savings for millions of americans. risk to theemic economy. now the former director of the nonpartisan congressional budget asset calculates that if managers have to comply with these too big to fail regulations, with no systemic risk, it will drive up the cost of their operations to the extent where the long-term rates of return that they can generate for millions of americans in this country will be dinged by about .5%. i don't know about you, but where i come from, 25% is a lot

of money. yellen,gree, chairman that it does not make any sense for non-bank financial institutions that pose no systemic risk to the market like asset managers should escape this dodd-frank regulation? janet yellen: the sso seed is is chargedh -- fsoc with trying to identify the financial stability of our country. issued a public notice indicating that what they're going to do is to look at particular activities. not firms, but asset management activities. they could pose risks. rep. poliquin: i appreciate that. i would like to switch gears of i can in my remaining minute. he stated on a number of occasions that you are very concerned about

unsustainable debt in this country and how it might impact job growth in this country and i agree. everyone knows on a family budget that you cannot spend more than you take in for long periods of time and borrow and make up the difference without getting in trouble. is exactly what congress has done. that is why we have an $18 trillion national debt. we have had some folks come before our committee, including the secretary of treasury mr. lou. you said that it is no big deal because it is only 3% of our gdp. i disagree with that and i bet you do, too. i'm a state treasurer in maine and i can tell you that high levels of public debt caused by long periods of deficit spending can do great damage to our economy because we need to pay the interest on that rising debt , therefore, we are not able to spend it to build roads and bridges and educate our kids. this year, cherry on, we are 230 billionut

dollars on that debt. in 10 years, it is projected to be a hundred billion dollars, more than we pay to defend our country. can we agree that it is about time you help us and congress gets his act together when it comes to reducing our deficit spending? janet yellen: i did indicate my concern with the sustainability of the debt path that the united states is on. rep. poliquin: i hope you use your influence in this time to make sure you talk with the administration to make sure they know. >> the time of the gentleman has expired. the chair wishes to inform the chairing members of the anticipates clearing two more members in the queue, the gentleman from arkansas and the gentlemen from oklahoma. at that point, itunes update adjourning the here -- i anticipate adjourning the hearing. hill: the couple of items

i want to bring goo. you see that one out of five counties no longer have a physical presence of a bank. not a branch of a national bank, but not a presence of a commercial bank. i think that is concerning and speaks to his point. two things on that item that i want to call to your attention that relates to merger approval issues at the fed. one is the perfect all index. kirkendall perfect al discriminates against rural areas. i think the idea of using county designations and using deposits whate sole member of business is as a trade area is incorrect. i can give you many examples of this.

i would invite the board staff to reconsider how to do bank theers and not based on on perfect all index. secondly is the issue of comment letters on mergers. mergers between bank holding companies, if they get one comment letter that extends to 206 days for approval, which reduces efficiency, reduces productivity and that, i like to see the board adopt a new approach on comment letters and established between real comment letters from the geography merger ando the murde promotional fishing expenditures and not force a governor approval of mergers. i'm going to write you on this. you do not need to comment on it today. i would like you to comment on

labor force participation rate. my reading of the cohort to agorence th a minute are that younger people are the ones dropping out of the labor force. people over 55 are the ones working more than before. i take it as an issue that it is the problem of the baby boomers. questioningnuing chair yellen. the half covered topics like dodd-frank, community banking, and student loans. we have much more headlines coming. also, president obama will behold and a news conference from the white house at the top of the hour. he will be talking the iran nuclear deal and much more. stay with us. ♪

10:00 a.m. in san francisco in 1:00 a.m. in hong kong. k: president obama will hold

a news conference in any moment now. he is expected to give information on the iran deal and we will bring it to you live. chairman yellen -- chairwoman yellen finishing up testimony. mark: the greek parliament voting on a bailout plan that would keep country in the eurozone, but also impose tough austerity measures. ♪ betty: a lot for the markets to check on. i'm betty liu here with mark crumpton. onwant to get here with ramy how the markets have reacted to the headlines. ramy: good afternoon to you. markets across the board are all flat. that is the word over the past few hours.