at this from a science perspective. it talks about the need to look at it in terms of longer term recovery. that summary in the first chapter is again something that i would commend everybody to read just to sort of bring you up to speed if you haven't been on the importance of this issue and importance of addressing it. the next chapter focuses on the science behind the addiction. it's consistent with a conference we had here in washington, d.c. almost a year ago now. senator whitehouse and myself in anticipation of proposing legislation in this area and we brought in experts from all over the country to talk about the science behind addiction, why it happens, how it happens. that was as was indicated earlier something that led us to focus on the fact that addiction is a disease. it is something that impacts the brain. the brain responds to chemical substances in certain ways for certain people, and that addiction is something that has to be addressed through again treatment and longer term recovery.

the legislation we came up with after this, by the way, it called the comprehensive and addiction recovery act. that legislation was passed late in the summer. it's now in the process of being implemented by the administration. i encouraged the surgeon general with his great report, this 11 paij report to also foe -- 11 paij report to also focus on implementing the legislation including in this area of treating it as a disease. the next chapter talks about a key component which is prevention and education. it talks about the need for us to use evidence-based techniques around the country. again, this legislation, the comprehensive addiction recovery act also known as cara focuses on this and starts a national awareness campaign to make this link between prescription drugs and heroin. sadly, many people who are on heroin probably four out of five people who are addicted to heroin started with prescription drugs. sometimes it was because of an accident or an injury or someone was prescribed a painkiller that was addictive that then led to the addiction and then led to the use of heroin as a less expensive and sometimes more accessible alternative to it.

that issue of prevention and education i think is incredibly important. they take -- the takeback programs on pharmaceuticals does also important. the antidrug coalition that are supported in our legislation are also important. this is all part of how to get people from falling into this funnel of addiction is to do a much better job of explaining the problem, understanding the link between prescription drugs and these other opioids. the next chapter talks about how we treat addiction. this talks about the need for us to get people out of the criminal justice system and into treatment. our legislation helps in that as well by providing funds for diversion programs to ensure that people who are addicted are not simply locked up but are also given the opportunity to be able to get into a treatment program and into a longer term recovery program. the next chapter of this report today also talks about recovery. cara is the first legislation to actually fund recovery. i think we need to did even more

in this area, but we certainly learned again from conferences here in washington, d.c. over the last few years that the success rate is increased dramatically where you have not just a short-term treatment program but a longer term program of recovery where people are surrounded by those who support him and specifically sober housing arrangements and other ways to surround people with a supportive environment rather than going back to the old gang or the old family or the old environment. again, the report today i think does a good job of talking about that and the importance of it. so the surgeon general has a passion for this, a commitment to it. i applaud him for that. i do hope again that he focuses on this legislation. we've now passed it with the such port of the administration. the president has signed it. the president does not mention the -- the report does not mention the legislation but it's consistent with every aspect of this report today. this report i hope will raise awareness nationally, as i said, but also i hope raise awareness of the need to move very quickly to put in place the grant programs that need to be there

help on prevention, education, treatment, recovery, help our law enforcement community, and other first responders be able to get access to far cane, this miracle -- narcan, this miracle drug, help to provide the training, help to ensure we have more drug takeback programs around the country. these federal programs need to be put in place right away to be able to allow the federal government to be a better partner with state and local government and with our communities and with our families to be able to reverse the tide on this issue that has unfortunately gripped my state and so many other states around the country. i look forward to continuing to work with the surgeon general on this issue. again, i commend this report today to your attention. and i hope that we will be able to as a congress to continue to provide the funding as we have in the short-term spending that's in effect right now. we provided funding to ensure this legislation can be set up so that we can stand up these programs and get this started. we need to continue that effort. i think redouble our efforts, including passing additional

legislation as it becomes apparent that it's needed. one piece of legislation i hope we move on in addition to the comprehensive addiction recovery act is legislation to try to stop some of the synthetic drugs from coming into our communities. carfentanil and fentanyl and iew for and other synthetics are coming in increasingly from overseas, china, india, other places. they come by mail. there's a way for us to be able to reduce that simply by requiring that those who send products by mail have the same requirements you would have if you were fedex or u.p.s. or a private carrier to know what's in it and where it's going and have the information provided in advance electronically. that will based on law enforcement officials help us to stem the tide of these poisons coming into our communities and forgetting -- forgetting our families, our children. these are all issues that this congress has again taken up over the last six months with legislation, with specific programs and i'd hope that we could continue to fund that now

to get the administration to set up these programs, and to ensure that we are in a position to respond as new dangers arise, as we have seen with the synthetic heroin coming in from overseas. i thank you, mr. president, for giving me the time to talk about this. again, i commend this before today by the surgeon general to increase awareness and ensure that every community in america is armed with the facts and the foarkts to be able to push -- information to be able to push back and help save lives and restore lives of those addicted. thank you, mr. president. the presiding officer: the senator from the ohio. mr. portman: i ask unanimous consent that the senate proceed to consideration of s. res. 619

submitted earlier today. the presiding officer: the clerk will report. the clerk: senate resolution 619 recognizing national native american heritage month and so forth. the presiding officer: is there objection? is there objection to proceeding to the measure? without objection. mr. portman: i ask unanimous consent then that the resolution be agreed to, the preamble be agreed to and that the motions be -- to reconsider be considered made and laid upon the table with no intervening action or debate. the presiding officer: without objection. mrunder the previous order, the senate stands adjourned until 9:30 a.m. >> it's targeted toward new offshore oil drilling. off the floor negotiations

continue over federal spending during 2017. current spending authority ends on december 9th. we'll have live coverage when the senate returns here on c-span2. >> tonight supreme court justice clarence thomas will deliver remarks on the life and legacy of his friend and former colleague, justice antonin scalia, who died in february. justice thomas will speak at an event hosted by the federalist society starting live tonight at 9 p.m. eastern on c-span. and tomorrow the supreme court oral to argument in two consolidated cases brought by miami against the bank of america and wells fargo. the high court will decide if miami can sue the banks under the fair housing act for discriminatory mortgages given to african-american and hispanic buyers that resulted in loan defaults, foreclosures and less tax revenue for the city. you can listen to the supreme court case friday at 8 p.m. eastern here on c-span2.

♪ >> c-span's "washington journal," live every day with news and policy issues that impact you. coming up friday morning, democracy for america executive director charles chamberlain will look at the direction of the democratic party after upsets during the election and whether the party needs to adjust its message to voters. then appropriations and budget committee member congressman tom cole will discuss the election of donald trump and what it means for the republican party, key issues in the lame duck session and the gop house agenda. and washington times' stephen dinan will talk about earmarks, their history and how congressional leaders use and negotiate the federal funding for pet projects. be sure to watch c-span's "washington journal" live at 7 a.m. eastern friday morning. join the discussion.

>> i've always been a great admirer of america, a student of american history. and particularly the history of its african descendant people. >> sunday night on "q&a," the memoir, "never look an american in the eye: flying turtles, colonial ghosts and the making of a nigerian-american." >> my uncle formed this impression from watching cinema, westerns specifically, where the cowboys could gather together in a bar and exchange a few words, and we never understood what they were saying. but then at one point they would stare each other down and shoot him. so my uncle formed that impression that that's what americans would do to you, shoot you, if you looked them in the eye. >> sunday night at eight eastern on c-span's "q and a." >> follow the transition of government on c-span as donald

trump becomes the 45th president of the united united states and republicans maintain control of the u.s. house and senate. we'll take you to key events as they happen without interruption. watch live on c-span. watch on demand at c-span.org or listen on our free c-span radio app. >> thank you all very much. welcome to congress. [applause] >> next, testimony from federal reserve chair janet yellen on interest rates and the u.s. economy. she said an increase in the fed's interest rate may occur relatively soon and talked about the various factors contributing to that decision. asked directly if she intends to serve out her full term as chair, she said she sees no reason to step down before her term ends in january 2018. speaking in front of the joint economic committee, this is an hour and 45 minutes.

[inaudible conversations] [inaudible conversations]

>> excuse me. the committee will come to order. we're welcoming this morning chair yellen, federal reserve chairman. i would like to just announce to my colleagues, and many of them will be filing in shortly, we have a hard stop at noon. both for the chairman's sake, and we have a senate vote at noon. so we'll do everything we can as chair to get everybody the opportunity to ask questions of the chair, but to my colleagues, it's a hard stop, so we're not going to be able to go beyond that time frame. the joint economic committee has a long tradition of receiving regular updates from the chair of the federal reserve, and

we're pleased to hear the chair's insights once again before the congress adjourns for this cycle in 2016. while we have seen some encouraging metrics of economic performance over the past years, the next congress and the next administration will still face a number of challenges. eight years after a deep recession, we're still looking for a higher rate of gdp growth, stronger productivity growth and increased work opportunities especially for prime age workers. low interest rates have historically been the prescribed treatment for a weak economy. however, the past seven years have clearly taught us that low interest rates alone cannot cure an ailing economy. in response to this continuing challenge of stimulating growth to a more desired level, there seems to be a growing consensus forming that tax on regulatory reforms plus fiscal stimulus

measures such as targeted infrastructure initiatives may be necessary ingredients or perhaps are necessary ingredients to incentivize capital investment in gdp growth. but as we pursue these policy changes, we also have to be mindful of a nearly $20 trillion national debt that looms ominously over the u.s. economy. where debt to gdp stood at 39.3% in 2008, it will total 76.6% by the end of this year according to the cbo analysis and will climb to 85.5% over the next ten years. we look forward to hearing the chair's thoughts on this economic outlook as well as the types of policies that congress perhaps should be looking at and considering during this time of change. i now recognize ranking member knew lainny for her -- few

lainny for her opening statement. >> thank you, mr. chairman. this is likely the last hearing of the joint economic committee in the 114th congress, and i'd like to sincerely thank chairman coats for his stewardship of the jec and for holding a number of very interesting hearings that have generated excellent discussion. i'd also like to thank my colleagues on both sides of the aisle and to welcome martin heinrich as the ranking member on the democratic side and to express my appreciation to ms. klobuchar who is going, i understand, to be ranking on rules. i'm particularly pleased that we are ending on a very high note with federal reserve chair janet yellen. chair yellen, i think it's fair to say that all my colleagues warmly welcome you to this hearing and look forward to hearing your thoughts at this critical time. i'd like to begin by thank you for your extraordinary and careful leadership of the

federal reserve. the fed has played a critical role in helping our country recover from the worst recession since the great depression. your steady hand has built on the work of your predecessor and has guided the economy forward, and we thank you. much has changed since you appeared before the committee about a year ago. the economy has continued to strengthen, the labor market has continued to improve, wage growth has been the strongest since the recession, household income has had the largest annual increase since census began tracking this data, inflation has edged up though it remains below the fed's 2% target. these are among the tea leaves of the economy, and and everyone here is eager to find out how you read them. up until very recently, it was widely assumed that the federal open market committee would raise interest rates at its next meeting less than a month from today.

some of your past statements have indicated that this is a possibility or even a goal. but then came a thunder bolt on november 8th. many critical changes about our country changed literally overnight, and our world has been turned upside down. the question everyone would like to know is how the federal reserve will steer through the days ahead. one particular challenge is that the president-elect has called for policies that may have countervailing effects. history has shown us that the type of tax cuts candidate trump has proposed disproportionately benefit those who don't need them and dramatically increase our national debt. i'm also curious to see how president-elect trump's infrastructure plan be reconciled with the republican congress' past opposition to fiscal stimulus. there is a great deal of

uncertainty about fiscal policy, and that leads to uncertainty for markets, businesses and the economy overall. one constant hope that i have is that we can count on monetary policy that remains insulated from political attack and attempts to meddle in any way with the federal reserve's independence. the election could also have a direct effect on the fed itself. the president-elect's comments on this subject have been somewhat contradictory. he thinks both that the current low interest rates are good for the economy and that the fed has been being political in keeping them at these levels. the congress -- in congress some have called for revolutionary changes for the federal reserve, changes that would affect the very nature of the institution, changes that, in my opinion, would lead to disaster. to those who would like to restrict the independence of the federal reserve, i think it's

important to briefly review that immense benefit of an independent federal reserve. we have only to look back a few years when president obama took office. he inherited what former fed chairman ben bernanke called, and i quote, the worst financial crisis in global history including the great depression, end quote. the federal reserve quickly acted to lower rates to almost zero and has held them there for about eight years. it instituted several rounds of quantitative easing to further stimulate the economy. this action by the independent federal reserve was critical to our recovery. economists alan blinder and mark zandi found that efforts by the federal reserve and the obama administration -- with support from democrats in congress -- dramatically reduced the

severity and length of the great depression and recession and prevented a depression. with control of the legislative and executive branches, past republican efforts to limit the fed's independence may gain momentum. last year republicans in the house passed legislation, the form act, that would fundamentally hamper the fed's ability to conduct monetary policy. it would limit the fed's independence by forcing it to determine target interest rates using a mathematical formula while ignoring a broad range of important economic indicators. chair yellen, as you noted before, if the fed had been forced to follow such a rule in recent years, and i quote, millions of americans would have suffered unnecessary spells of joblessness over this period, end quote.

another proposal to jettison the fed's mandate to try to maximize employment and instead focus solely on inflation. i'm not sure that people in michigan and pennsylvania and other states would respond well to that suggestion. but if that's the conversation my colleagues want to have, then we'll be ready to have it. the past nine-plus years have been an extraordinary period in the u.s. economic history. we should continue to study and learn from it. we are not out of the woods by any stretch. when the next recession hits, as it surely will, what will the monetary response look like? will the fed have the tools to restore growth? will it turn to quantitative -- return to quantitative easing? what other effective policy tools will the federal reserve have at its disposal? i want to make one final point. the federal reserve has been at the center of the u.s. and

global economic recovery. efforts to hamstring the fed are misguided just as efforts to politicize it are wrongheaded. chair yellen, thank you for appearing before the joint economic committee today. we look forward to your testimony. thank you. >> it's now my privilege to introduce to you chair of the board of governors, janet yellen, has been, has long experience at the federal reserve including four years as vice chair of the board of governors and six years as president and chief executive officer of the federal reserve bank of san francisco. she previously served as chair of the council of economic advisers under president clinton and as chair of the economic policy committee of the organization for economic cooperation and development. chair yellen earned her ph.d. in economics from yale university and is also professor emeritus at the university of california at berkeley.

it is my pleasure, chair, to introduce you as our witness today and to thank you for your always accessible presence before this committee. you've been someone that has been a delight to work with and to get your guidance in terms of the direction that we think the fed needs to take in order to assure our public that there's a steady hand at the helm. so we thank you for coming this morning and look forward to your testimony, and then we'll have questions from our committee. >> thank you for those kind comments. it's my pleasure to be here. chairman coats, ranking member that loney and -- maloney and members of the committee, i appreciate the opportunity to testify before you today. i will discuss the current economic outlook and monetary policy. the u.s. economy has made further progress this year toward the federal reserve's

dual mandate objectives of maximum employment and price stability. job gains averaged 180,000 per month from january through october. a somewhat slower pace than last year, but still well above the estimates of the pace necessary to absorb new entrants to the labor force. the unemployment rate, which stood at 4.9% in october, has held relatively steady since the beginning of the year. the stability of the unemployment rate combined with above-trend job growth suggests that the u.s. economy has had a bit more room to run than anticipated earlier. this favorable outcome has been reflected in the labor force participation rate which has held steady this year despite an underlying downward trend stemming from the aging of the u.s. population.

while above trend growth of the labor force in employment cannot continue indefinitely, there nonetheless appears to be scope for some further improvement in the labor market. the unemployment rate is still a little above the median of federal open market committee apartments' estimates of its longer run level. involuntary part-time employment remains elevated related to historical norms. further employment gains may well help support labor force participation as well as wage gains. indeed, there are some signs that the pace of wage growth has stepped up recently. while the improvements in the labor market over the past year have been widespread across racial and ethnic groups, it's troubling that unemployment rates for african-americans and hispanics remain higher than for

the nation overall and that the annual income of the median african-american household is still well below the median income of other u.s. households. meanwhile, u.s. economic growth appears to have picked up from its subdued pace earlier this year. after rising at an annual rate of just 1% in the first half of this year, inflation-adjusted gross domestic product is estimated to have increased nearly 3% in the third quarter. in part, the pick-up reflected some rebuilding of inventories and a surge in soybean exports. in addition, consumer spending has continued to post moderate gains supported by solid growth in real disposable income, upbeat consumer confidence, low borrowing rates and the ongoing effects of earlier increases in household wealth. by contrast, business

investments has remained relatively soft in part because of the drag on outlays for drilling and mining structures that resulted from earlier declines in oil prices. manufacturing output continues to be restrained by the weakness in economic growth abroad and by the appreciation in the u.s. dollar over the past two years. and while new housing construction has been subdued in recent quarters despite be rising prices -- despite rising prices, the underlying fundamentals including a lean stock of homes for sale, an improving labor market and the low level of mortgage rates are available for a pick-up. turning to inflation, overall consumer prices -- as measured by the price index for personal consumption expenditures -- increased 1.25% over the 12 months ending in september. a somewhat higher pace than

earlier this year, but still below the fomc's 2% objective. much of this shortfall continues to reflect earlier declines in energy prices and in prices of non-energy imports. core inflation, which excludes the more volatile energy and food prices and tends to be a better indicator of future overall inflation, has been running closer to 1.75%. with regard to the outlook, i expect economic growth to continue at a moderate pace; sufficient to generate some further strengthening in labor market conditions and a return to the committee's 2% objective over the next couple of years. this judgment reflects my view that monetary policy remains moderately accommodative and that ongoing job gains along with low oil prices should

continue to support household purchasing power and, therefore, consumer spending. .. along with the return of inflation towards a fomc objective. in september, since the committee decided to maintain the target range for the funds raised at one quarter 2-1/2% and stated that while the case for an increase in the target range

had strengthened, it would for the time being wait for further evidence of continued progress toward its objectives. at their meeting earlier this month, the committee judged that the case for an increase in the target range had continued to strengthen and that such an increase could well become appropriate relatively soon if incoming data provides further evidence of continued progress toward the committee's objectives. this judgment recognized progress in the labor market has continued and the economic activity has picked up from a modest pace seen in the first half of this year. and inflation while still below the committee's 2% objective has increased somewhat since earlier this year. furthermore the committee judged the near-term risk of the outlook will roughly balanced.

waiting for further evidence does not reflect a lack of confidence in the economy. rather,, with he and employment rates remaining steady this year, despite job gains and with inflation continuing to run below its target the committee judged that there were somewhat more room for the labor market to improve on the sustainable basis than the committee had anticipated at the beginning of the year. nonetheless, the committee must remain forward-looking in setting monetary policy. were the fomc to delay increases in the fund-raiser for too long it could end up having to tighten policies relatively abruptly to keep the economy from significantly overshooting both of the committees longer-run policy goals. moreover, holding the federal funds rate at the current level for too long could also encourage excessive risk-taking

and ultimately undermine financial stability. the fomc continues to expect the evolution of the economy will warrant on the gradual increases to the federal funds rate over time to achieve and maintain maximum employment and price stability. this assessment is based on the view that the neutral federal funds rate, meaning the rate that is neither expansionary nor contractionary and keeps the economy operating on an even keel appears to be currently quite low by historical standards. consistent with this view, growth and never get spending has been moderated in recent years despite support from the low-level of the federal funds rate in the federal reserve's large holdings of longer-term securities. with the federal funds rate currently only somewhat below

estimates at the neutral rate, the stance of monetary policy is like we moderately accommodative which is appropriate to foster further progress towards the fomc's objectives but because monetary policy is only moderately accommodative, the risk of falling behind the curve in the near future appears limited and gradual increases in the circle funds rate will likely be sufficient to get to a neutral policy stance over the next few years. of course, the economic outlook isn't terribly uncertain and is always the appropriate path to the federal funds rate will change in response to changes to the outlook and associated risks. thank you and i would be pleased to answer your questions. >> chair yellen, thank you for your opening statement. something caught my attention

during that statement that i hadn't been reading your statement earlier, this caught my attention. stated that the case increase in the prime rate relatively soon unless, the word in less perks me up a little bit further evidence indicated to the contrary. my question to you is, are the results of the election, does that fall in the category of the fomc how does looking at that in terms of the decision that the case for an increase is still relatively soon? >> my own judgment is looking at incoming economic data and developments thus far affecting the outlook. the evidence we have seen since we met in november is consistent

with our expectations of strengthening growth and improving labor markets, inflation moving up, so we indicated that the case had strengthened for an increase in the federal funds rate and to my mind the evidence we have seen since that time remains consistent with the judgment of the committee reached in november. now obviously there are many economic policies that congress and the administrative and will be considering in the months and years to come and when there is greater clarity about the economic policies that might be put into effect, the committee will have to fact your those assessments of their impacts on employment and inflation and perhaps adjust our outlook depending on what happens.

many factors over time affect economic outlook and the appropriate stance of policy that is needed to achieve our dual mandate employment and inflation objectives but at this stage i do think that the economy is making very good progress toward our goals and the judgment the committee reached in november still pertains. >> thank you. you suggested publicly that fiscal policy should play a role in stimulating economic growth. as i mentioned in my opening statement and a new economic growth initiatives and vision by the next congress and the next administration should include a full accounting of the potential effects on the economy. from your perspective how would you balance the need to promote economic growth with the realities associated with deficit spending in high and

rising debt? i assume we are looking at some type of a balance there. how can that be achieved? >> well it's clearly up to congress and the administration to weigh the costs and benefits of fiscal policies that you will be considering. my advice would be that several principles should the taken into account as you make these judgments. first of all, although the economy is operating relatively close to full employment at this point, so in contrast to where the economy was after the financial crisis with a large demand boost was needed to lower unemployment, we are no longer in that state. you mentioned the longer-term fiscal outlook.

cpl's assessment as you know is there are longer-term challenges that our debt-to-gdp ratio at this point looks likely to rise as the baby boomers retire and population aging occurs and out longer-run deficit problem needs to be kept in mind. in addition with the debt-to-gdp ratio at around 77% there is not a lot of fiscal space should a shock to the economy of kerr and a shock but did require fiscal stimulus. i think what has been very disappointing and the economy's performance over the last really since the financial crisis or maybe going back before that is

productivity growth has been exceptionally slow. the last five years, a half percent per year, the last decade a quarter% per year, the previous two decades before that were about a percentage point higher and that's what ultimately determined the pace of improvement in living standards. my bias would be as you consider fiscal policies to keep in mind and look carefully at the impact those policies are likely to have on the economies productive capacity, on productivity growth and to the maximum extent possible choose policies that would improve that long-run growth in productivity outlook. >> thank you. my time has expired so i return to congressman maloney for questions. >> thank you mr. chairman and

thank you for your service. we will miss you. can you envision any circumstances where you would not serve out your term as chair of the federal reserve? >> no, i cannot. i was confirmed by the senate to a four-year term which ends at the end of january of 2018 and it is fully my intention to serve out the term. >> the election outcome introduced new uncertainties that the markets in the air had not expected and priced in. how do these uncertainties that affect the fed's decision in the next meeting? >> well the markets try to anticipate what policies congress and the administration will put into effect and we have

seen some significant market moves since the election in particular longer-term treasury yields about 40 basis points and his already strength and about 3.5% for an index. my interpretation would the that markets are anticipating that you will ultimately choose a fiscal package that involves bad expansionary stance of policies and in the context of an economy that is operating reasonably close to maximum employment with inflation getting back toward 2%

i do think and we have said in the committee has said for a long time that gradual increases circle punch rate are likely to be appropriate to promote are just as and buy assessment of where the economy is and how it's been operating and the fact that near-term risks do seem

reasonably balanced. i would think that the judgment that the committee reached in november remains the appropriate one. >> and chair yellen one of the most significant responses to the financial crisis was the passage of the dodd-frank law. today is a result of this law the financial system is stronger, safer and more stable. how do you feel about repealing dodd-frank? >> well, i agree with your assessment. we lived through a devastating financial crisis and a high priority i think for all americans should be that we want to see put in place safeguards, super visions and regulations that result in a safer and

sounder financial system and i think we have been doing that and our financial system is a consequence is safer and sounder. many of the appropriate reforms are embodied in dodd-frank. we now have much higher capital than before the crisis, much more stringent liquidity requirements. derivatives, standardized derivatives are now subject to central clearing and derivatives both clear and uncleared are subject requirements that increase their safety. we have a new orderly liquidation authority. we are focusing on resolution through an ending too big to fail through the living wills process which i think is really changing the mindset of large

financial firms that have the need to run their businesses and making them safer and sounder and dodd-frank puts considerable emphasis on financial stability. we now have a group, the afsoc that meets all the regulators to consider threats to financial stability so i think dodd-frank was very important and fostering those changes and we should feel glad that our financial system is now operating on the safer and sounder footing. >> thank you in my time has expired but i just have to ask you very quickly, do you have concerns that the repeal would make another financial crisis more likely? >> i certainly would not want to see all the improvements that we have put in place, i would want to see the clock turned back on those because i do think they

are important and diminishing the odds with another financial crisis. >> thank you for your service. >> thank you congresswoman. there vice chairman mr. tiberi. >> i'm book ended by two individuals were going to retire in this session it's an honor and privilege to sit in the past on this committee with both of you. you have brought so much business expertise and chairman if there were concerned that -- he would be that picture. it's an honor and privilege to serve with you. you will be missed. i'm comforted only by knowing that your replacement, my colleague senator todd young is as nice and as smart as you sow a great successor. >> he is actually smarter. but thank you for the complement >> chair yellen it's an honor to have you here and thanks for your time.

the story this month in "the wall street journal" reported that for the first time in more than 30 years, banks, credit unions and other depository institutions share of the market should market fell below 50% because of the bank's aversion to risk in fear of legal and regulatory issues. while some lending is increased banks have shifted clearly to far worse to have the best credit. small businesses have lagged and new rules for credit cards may be hindering lending as well. president-elect trump has said the dodd-frank is and i quote a tremendous burden to the bank's previous express the same concerns that the banks are unable to listen to people who actually need it, people who want to start a business or stay in their current business which has made us less competitive and has slowed growth. this view is shared by many community bankers, by small and medium-sized bins business owners and by many economists

across our country. further the gao released a study of the federal reserve's bank stress test procedures and had 15 as you know recommendations for making improvements that go beyond what was outlined his next steps. chair what are your responses in respect to the following issues? the current state of bank lending, constraining effects of regulation, generally and the stress tests in particular and finally the impact on the economy's ability to grow and create jobs? and one last thing, do you plan on adopting the gao stresses recommendations on improving transparency model design and management and cost benefit analysis and any of that i asked if he can't respond to today assert me understand. if you could reply in writing we certainly would appreciate it. >> let me take a shot at replying.

if there's anything i don't cover i'd be glad to respond. let me start by saying something about the burdens on community banks. community banks play a very important role in our economy and lending understanding the conditions in their communities and providing lending that supports economic growth. it's really critical that they be able to function and thrive. we erected nice, we talked to community bankers regularly and to recognize the burdens that they are operating under our significant and want to do everything that we can to reduce those burdens and to simplify the compliance regime for those banks. we have taken many steps on her

own to reduce the burdens of our supervision and we are contemplating ourselves, the regulators working on possible proposals for a simplified capital regime that would apply to smaller community banks. so i completely agree those banks play a critical role and we need to focus on reducing burden. with the dodd-frank rules, many of them apply to the largest financial institutions in the most significant increases in capital requirements, including surcharges from the largest capital surcharges to the largest firms that create the greatest systemic risk, the burdens of stress tests and other regulatory requirements fall on those firms that i do

think pose potential threats to financial stability. it is important that those institutions maintain higher standards of safety and soundness. you mentioned the stress tests and gao's findings. stress tests being central to the federal reserve's efforts to increase capital and ensure that capital planning in large systemic financial institutions, the capital planning takes into account an accurate assessment of the risks that could strike banks. gao in their review found generally that are stress tests

are effective and useful and they suggested changes many of which we had already considered or had underway and their suggestions are useful. we intend to take them up or look carefully added with a useful report. but the bottom line concluded that are stress testing regime has resulted in a very substantial improvement to safety and soundness. i should say we recently put out a regulation that will reduce the burden of the stress testing regime on in situations between 10,000,000,250,000,000,000 and size, 50 billion in 250 billion

come that those institutions will no longer be subject to the qualitative part of our so-called c. car capital review process, that we will no longer object to capital distributions based on qualitative the value laysha and up there capital planning process, that will look at their capital planning process and normal supervisory methods. i think that full serve to reduce burdens on a number of large and smaller institutions subjects to the stress test. funny you asked me about bank lending and mortgages. i think certainly mortgage credit standards have tightened up and there are far worse who are finding it difficult with lower credit ratings to obtain mortgage credit. i think it is a consequence of

the financial crisis, regulations and greater caution on the part of lenders. i think we want to go back to the mortgage lending standards that we had in the first decade of the century that led to the financial crisis but they certainly have increased. on small business lending, think my assessment there would be that it remains largely available and that banks find, and this is something you will also see in surveys, that the demand for lending by schools and businesses has not been very robust in recent years. in part i think they see their sales are not growing sufficiently rapidly to justify much borrowing. certainly the community banks and other banks that we talked

suggest that they stand ready and will have adequate resources that support additional lending to smaller businesses. but there's a question there as to whether that is a demand or supply issue. >> thank you congressman. i've just been alerted that the house has been called for a vote we would love for you to voting come back and keep your place in line. the senators as i looked down the line are smiling because that means they move up on the lists. senator klobuchar you are next on the list. we would love to to have you back a move keep to have the backing of key panelists. >> on the list. >> okay very good. thank you very much madam chairman and two follow-up on

mr. tiberi, not 20 banks. think i will put some additional questions on record. as you know i'm concerned about the status of community banks and what's been happening in the last two years. i just wanted to start out with a question about the importance of independence for the central bank. i know you can't comment on political goings on but you may have noticed there were some campaigning going on in the last year and the federal reserve was discussed a few times. could you comment on the importance of preserving the independence of the federal reserve bank from interference by either the executive branch of the legislative branch and what that would mean for monetary policy especially if there wasn't a specific independence of the bank? >> thank you for that question. i think independence by a central bank to make tactical decisions about implementation

of monetary policy subject to a congressional mandate. obviously we are accountable to congress. congress has established goals for us of maximum employment price stability but it's critically important that a central bank has the ability to make judgments about how best to pursue those goals while being accountable for explaining its decisions and transparent in this decision-making. central banks around the world in recent decades have gained independence and economic outcomes that have resulted from this trend towards central bank independence and we have seen much better macro. >> there are studies that show

that banks have that sense of independence there have been improvements in those countries? >> there is clear evidence of better outcomes in countries where central banks can take the long view are not subject to short-term political pressures and sometimes central banks need to do things that are not immediately popular for the health of the economy. we are really seeing terrible economic outcomes in countries where central banks have been subject to political pressure. often it's a case where a country is not able to balance its budget and is running a large deficit come is finding it hard to finance those deficits. how can you finance and realize you can go to the central bank and force it to buy the debt that's being issued. the story in every country that is experience very high or hyperinflation is one where

central bank is forced to follow the date dates of the government that it has compromised its independence. markets come to expect low and stable inflation from the central bank that has political independence and good economic performance and i believe we have seen that both in the united states and globally. >> incorporated you. we have the dual goal of maximum employment and price stability. there has been some talk out there of just eliminating one of the goals in just focusing on price stability. ..

>> >> to a great extent and i think they're both appropriate goals. price stability is a goal that every central bank that also take employment or will site employment into account their in is rarely any conflict so that is not commonly the case most of

the time they are not if you look at what we are faced with the aftermath of the crisis, very high unemployment to bring down as rapidly as possible and inflation has been almost consistent some of those efforts to put in place that directed to achieving both of those goals. with respect to a group rate objective we can't independently achieve our inflation objective choose some arbitrary chosen growth rate objective and try to achieve it.

if we try to do that and it is sent consistent with the underlying productive economy commented the ability to grow based on changes in technology and capital labor over time, we end up with an economy that had as if inflation above acceptable levels or deflationary effect uh target was chosen to low. >> infrastructure funding is something the president elect discussed and then in town inequality so thank you very much. >> and now the members of the committee move to greater responsibilities. >> yes i am still on the

committee the front of line. [laughter] >> to talk about dodd/frank with the safety and soundness of oversight dodd/frank moves that over to the cfpb but yet in 2015 reporting wells fargo pressed on consumers bankers and was encouraged wells fargo paid $185 million in fines and notices a hypothetical, but dodd frank in this instance missed this and is this profound. diaz think it would have been any different if left to the federal reserve?

>> we have cooperated historic plea with other regulatory agencies to engage in the examinations. and in this case the cfpb was involved as comptroller of the currency most of those abuses were in the national bank where the controller of the currency also responsibilities. that has been historically true. so they did find the problems with significant finds to be put into place and in 2011, looking at the

subsidiary that be were responsible for which was the independent mortgage company that we find wells fargo to put them place the enforcement actions in together we worked pretty constructively and i would say that we supervise our state member banks and looking to see if there are similar practices that could cause problems and with the holding company's we supervise the largest installations with a horizontal review of compliance practices but we can work constructively and collaborative fleet. >> so there is no real

disconnect? >> there are many agencies in the united states trying to work constructively. with the adequate working relationship i would don't want to levy a criticism. >> previously we discussed student that -- debt and how that affects families and homes doing all those things can at a much younger age how do you take into account when they consider all love the things that they'll look at? it is like consumer debt a number that is haunting hanging over everyone said.

>> we have been very attentive to listed in debt it has escalated to the extraordinary degree whether or not student debt is a burden and might be in beating -- impeding the household formation and those that are buying single-family homes have been depressed then we would have expected to be quite strong but construction there is a number of factors

contributing to that with some research that suggests student debt is a factor in reducing the millennial standby single-family homes common burying later, it is difficult to sort down exactly what are the drivers >> bob dylan said you have to be a weatherman to see which way the wind blows. >> >> is a pleasure and an

honor to be on this committee. thank you for taking the time and i know that you understand politics shapes democracy in unpredictable ways we have to be prepared for that. in times of uncertainty the one thing that stands out is americans care about the economy and are concerned about their pocketbook, and good jobs, and while politics shaping our democracy don't follow the predictable pattern it has a measure of stability and certainty with consumers savers and spenders and young professionals. thankfully the federal

government remains an ocean liner, not the steamboat but that remains about question they'll level of uncertainty about fiscal policy in this nation i just want to say how much i appreciate your comments of the independence of the fed. end for the monetary policy and i certainly think must continue to be a compliment to fiscal policies of the federal government. also the unfounded accusation the federal reserve monetary policies are somehow political in nature can be one of the most damaging claim second happen in a modern democracy . certainly policymakers believe we have a role to express our views on decisions whether criticism or in praise but to undermine the independence and credibility of the federal reserve is a dangerous action that is difficult to undo once it is

out there. believe these are abstract discussions but the potential to undermine the credibility of the central bank has a direct impact on the economy of the constituents back home and i believe members of congress have the added responsibility to uphold these important norms over decades. so with that i would urge my fellow policymakers to exercise caution when it comes to these criticisms but the belief that perhaps one of the greatest challenges we face in the banking system today is cybersecurity the commercial level we face tremendous threat to every single day as you are well aware. the warning signs are evident hackers successfully stole $81 million from

bangladesh central bank by sending a false period request to the new york from reserve. there has been additional preaches uncovered including vietnam and ecuador all through the society for worldwide telecommunication banking network used worldwide by more than 11,000 financial institutions. use this example not to speak ill of swift but to strengthen the security and to illustrate on the global level wearily as strong as our weakest link when it comes to cybersecurity. and to put the topic on the agenda liam please the group thus seven have those principles to follow and i continue to believe this is an issue in collaborative

and international matter. so what steps did the federal reserve take of the internal cybersecurity as well as those financial institutions overseas to currently play a central role in what assurances can you give us a quick. >> with your assessment of this is one of the most significant risks our country faces and we are cooperating with the regulators as you indicated indicated, internationally and cooperating with the financial institutions to make sure we have a system that is prepared to deal with cybersecurity risk. we are very focused on this with their own operations and i can provide retail's if your interested to the

various things that we are doing to make sure that our own systems are safe to meet the highest standards. we are looking closely with financial institutions so those controls they have been places the key part of the supervision. we put out the advanced notice of the proposed rule making that suggest higher standards of cybersecurity protections for institutions that are systemically important and from those that are interconnected that spill over to the entire financial system proposing the highest standards given the fact they could be a source of vulnerability.

but i would say that we are focused with our own supervision working closely with financial regulators and the treasury to take the lead that this is something congress needs to look at very carefully. is unjust of matter of financial institutions and others involved in the economy and it is so broad thread that we are not able to do with adequate funding can. >> pilot 42 taking you up on your offer to have a more detailed discussion as to what is happening at the federal reserve as all this merges together issues stated the most significant threat that we face a while look forward to working

closely with you. >> we have a process to go forward i think we are between votes? we will give you your five minutes. >> one of the controversial effects is last time we were in a crisis you bought a lot of mortgage-backed securities. correct what. >> we did. >> q feel you paid above market value? >> no in the open market market prices. >> could you give me the

description of what you purchase over the last two years by. >> we have not purchased private bonds were treasury agency securities. >> what about the mortgage-backed securities but. >> they are injured by fannie and freddie. >> you consider that a government bond? to beckon agency bond and those are permissible index funds we buy securities in the open market and then process and auction. >> to those mortgage-backed securities have a face value soda to speak? or is there a value if they are paid in full?

>> they do have a face value of course, they trade in the market and they will deviate from those face values. >> when you are purchasing what you pay compared to the face value? >> i honestly don't have that we publish that information. >> just a wild guess. ninety%? eighty% greg 70% quest to make it would be market prices for the securities at that time. >> 70% of face? i realize you don't know exactly the you must know about quick. >> idol think the discounts were nearly that deep but i could be wrong.

>> okay. okay. that is my final question. >> banks for being with us today. in 2013 there were 12 banks that control 69% of the industry's assets for coaches see a marked increase in the share of revenues concentrated in a relatively small handful of firms. >> the economic census of 2012 we learned from that study that there were 133,000 fewer business establishments in the insurance industry and 2007 so over the five-year period

miso 33,000 business entities that left the market or consolidated into something else. night thinking it is worth evaluating of the increasingly concentrated burlesque competitive banking sector might pose especially in light of the concerns surrounding the too big to fail. so what risks do you see that may come from the concentration of the market share within the financial industry? what risk might that pose to the overall financial stability? >> large interconnected

complex firms, it isn't just a question of size but other characteristics matter. the distress or failure could pose significant risks and degrade deal of regulatory and supervisory response since the financial crisis has been directed at those firms that posed systemic risk. and we have imposed much higher capital standards for individual firms that reflect our assessment of the individual risks that each of those that pose to the financial system because of the risks they pose, and they need to have a lower probability of distressed to

be better manage with lower liquidity with the plans we need to make sure it is resolvable to diminish their risk of failing to our stress test and capital requirements with the plants and living wills the and other things to reprove the safety especially of those institutions. >> you mention the stress test in particular since the enactment of dodd/frank, the fed has undertaken various measures of regulatory enforcement. i wonder if some of those efforts might undermine the due process interest of those who own the banks? not just the banks are the wealthy but the many people

including retirees who invest. a longstanding concern of due process involves certainty per code james madison explained that in federalist 62 that it would be of little avail to the people that the law could be written by individuals of their own choosing as they are ever changing if they cannot be understood or such incessant changes that no person who knows what the law is today can be sure what it is tomorrow. minder standing -- the standards are constantly changing and there is a black box nobody knows what the law is today or what it will be to marco standards and forcible pioneer fed

carrying the force of law so how was that consistent with due process and the lack of transparency be consistent with our time-honored standards quick. >> i agree there is a lack of transparency while we do not publish the precise mathematical formulas to better use to evaluate the bank portfolios, but we have published and shared with the industry a great deal of information about the models that we use. >> but that doesn't mean that they know what the of models are. they are the basis for legal standards to which they are subject? >> we want these banking organizations to have sound risk-management and that means developing their own capacity to evaluate the risks in their portfolios

rather than using the model and the gao review did not recommend and they looked carefully at did not recommend that we share the exact details of the model. we have put out public comment, policies how we design stress test scenarios , the industry understands about devising those scenarios in they will change from time to time and they have agreed to get the information from the models that we use and what is contained in those to make sure that they have appropriate incentives to analyze their own unique risk to their organization

that may not be captured in our stress test and what is appropriate for each individual firm. >> my time is expired. i have to respect the clock but i want 2.0 the gao did recommend updating the guidance and want to be clear a vendor stand you have a difficult job in these are important things but idol think we can overlook the fact simply because it is important doesn't mean we can subject the american people to laws that are constantly subject to change and not even written but by those who are elected and unaccountable to the people not that they have bad intentions but there can be no due process in that environment and we need to take that into account in be mindful of that. >> mr. chairman thank you

for your service and the work that you did on this committee we are grateful for that. really wish you luck as you transition. madam chair we are grateful to be with you again is to provide testimony. we always learn from that. my copy of your remarks is highlighted and it is most interesting to me but to focus on a one word problem is wages or lack of wage growth. we have had a basic disconnect lady with a good recovery corporate profits are heavier thinks goodness but not the most recent numbers but over time it has been a different story.

redo have a disconnect with the profits going up and wall street resulting not going over time. it is a problem for both parties to come together and tackle its. i believe we need to focus on short-term strategies as well as a set of long-term priorities. but we have seen not just in the context of the election but people leading lives of struggle and a lot is connected to the wage issue. you are familiar with the economic policy institute that basically says wages grew more than 90% for 25 years after world war two with productivity growth but

that after that even with productivity still increasing more than 70 percent of wages would flat line 11 percent over 40 years. if that data and analysis is accurate, i believe it is is, we look at wage growth 11% of recant into were under 30 years of that. so what do we do? one thing is to focus to help burn communities with their dramatically affected by substantial job losses in the short term. thinking of erie county pennsylvania they have suffered a lot of job losses moving them to texas.

something i have been advocating for is the measures to provide immediate and targeted assistance to communities that have that seismic impact. overtime we need to focus on more strategic actions quality affordable child-care, a real commitment to early learning comment lately love agreement of both parties seven vestment of infrastructure not only the more traditional roads and bridges but also broadband it is hard to grow business if you're in a smaller community without access to broadband especially in rural america and that is really alarming of the huge percentages of rural america that does not have

>> >> i definitely think it is appropriate for congress and the it ministrations to consider that broad range. >> again conclusion that part of your testimony that was good news on wages you say in part it is set the pace of wage growth has stepped up. reflecting in the 2015. >> we have seen some evidence that we do have a trend. >> senator when these say

with the shuffling that is going on it appears you will move up significantly to this chair so i welcome you for that. i understand that chairmanship will revert back to the house although we're not sure we are looking for return leadership, above and to give you the chance to talk to cheer yellen that i will assume. >>, to of a pleasure it is to work with this committee will then also the intelligence committee. >> ... jump into some questions because senator casey went where i want to go with the economy coming of long way in the last few years and certainly growing but historic rehabs the approach if we can just make

the economy grow and we see the sentiment of the recent election that some of those have not been keeping up with the rest of us. that is a fundamental problem. so things like wage growth and the broken link and what you can describe to we have also seen a very divergent paths historical http wages to the same trajectory as productivity. do you have thoughts why that is with vocational

training to link those things together or broad swath of america that isn't feeling the benefits of the growing economy or rising stock market? >> productivity growth this important over the long haul with wage growth and and it is extremely disappointing over the last decade but i agree with the point that we had periods where real wage growth is it kept up with productivity is also true. one way that shows that is to look at the share of the pie of gdp for the output bundle of the economy, it is

division between labor and rewards to capital. that the chair was constant over years and recently we have seen in increase in the sheriff supply going to capital in that is consistent not easing up with productivity there is some research on that the united states is and deal the country that has seen that happen. i am uncertain of the cause but i would agree that to it is something that has happened. we are seeing a little bit of reversal in the market in wages are increasing more rapidly. but even if in line with productivity, we do have the fact we are seeing rising income equality with a loss

of middle income jobs and with technological change and globalization that was accelerated in the aftermath of the financial crisis so they were earning good incomes because after all the unemployed rate with those job openings the nature of the jobs have changed in the income is still taking a large wage hit so we see that frustration that comes with that in readjust kovach to the points that i made with senator casey's comments. for what could be considered

that is not in the domain of monetary policy but structural policy with training and education. >> q answered some questions earlier that were focused on mortgages and the tightening requirements for our want to cut quickly to the chase to ask fundamentally, we all agree we were not getting the balance right on the mortgage-backed securities with the stricter requirements and we have seen some benefits from that but did we get that right or have gone too far to tighten requirements quick. >> that is a hard question idol think i can give a simple answer to that. but it is appropriate that

the standards are tighter but there are eight groups that could be having a difficult time in the aftermath. >> and also think you for your chairmanship serving your country in a variety of ways. thank you. madam chair, thanks for being here and all you do. your knowledge greatly exceeds mine ask with trepidation but sincerity i had a conference -- conversation a field lens ago and asked is this the first time in eight years we have never had gdp growth of 8% said it could be new that the long-term capital

investment continues to decline. i have the graphic but it is clear to you looks like from 2011 the growth of capital expenditures from fortune 500 companies have climbed significantly but then begins the decline again. on the other hand, there is a spike of the buybacks. those say the easy money makes it easier for big corporations to arbitrage as opposed to make money buying long-term capital investments. going back to my conversation with former chair greenspan if you go to the board of directors say we need the third year plan for capital investment they will say where is the certainty? on the other hand, if you

say we can invest of the credit market we can have a return they will. so your comments have hurt long-term capital investment that is key with productivity growth and gdp. >> there are a number of factors that are depressing the gdp growth. my colleagues agree the long term growth rate will settle at one two-person to without a change of policy. and educational attainment of the workforce that is increasingly at a more rapid rate so there is less contribution. i agreed the capital investment is weak and that is one reason that

productivity growth has then as depressed as it is. for in those that come from other sources are also diminished. it's not clear to my mind of investment spending. initially we have an economy the firms were clearly operating to justify the need to invest in additional capacity. and more recently with the economy moving to full employment with investment spending picked up, is not obvious exactly. but i would not agree that

monetary policy has hampered investment or has been a negative factor. i am not aware of any evidence to suggest that it is. >> i am almost out of time. i have a graph that shows in about 2008 for the productivity began to climb so with excess capacity related to the financial crisis that around 2009 it modestly began to decline and then it has spent lackluster. so with what you are saying

these excess capacity with the recession had to shake itself out then that doesn't make sense between 2007 and 2009 it has grown. >> abilene what happened is that huge financial crisis as the firms were collapsing , and they took measures they thought were necessary for business and that meant firing every worker. because the layoffs were so huge we saw a surge of productivity to cut the workforce to the bone in those productivity is continued for a while and was eventually the amount of labor that froze was so low

relative to the output as hiring picked up and sales picked up, of productivity growth there was a huge surge as the firms did everything in their power to cut cost but not reflection of the trend. >> if a company has a chance as mr. greenspan was not related to this but if the ceo could go to the board to say we need to make a third tier investment with the uncertainty of interest rates and the environment to invest in these that they are choosing the financial instruments over productivity. would lead you say that is true? >> i think we do see a short-term focus of business

decision making that is disturbing and the process of that is not clear. i certainly don't think it is our monetary policy. but it is true that businesses seem reluctant to commit to projects in part that they don't see that many projects that will produce returns to justify those investments and b.c. evidence of those technological changes diminish it is a reflection of that. >> i think we have come to the agenda of the session. i just want to say that it has been a privilege to chair this committee.

there are very few joint committees warehouse and senate members gathered together to address a topic and this is one of them. we have had a wealth of experience of informed witnesses coming to was on a variety of topics with our economic issues and a national economy. we have made the records available to all house and senate members and to the general public. personally thanks to my colleagues and also the staff we have had a marvelous staff working together in a bipartisan way and that isn't normal here in congress but it is a pleasure and the respect

that i have for that staff is eagerness also special thanks to chair yellen as our star witness. we have had many wonderful witnesses that come before us but she is the star because the coordination between congress and the legislative branch is extremely important to the economic future of our country. chair yellen has been more than available to come and speak with us with all the questioning that takes place to better explain the role of the fed in the relationship of the congress and the legislative branch to be transparent and to be very thorough with her answers. so thanks for your availability with your

success going forward much of our economy falls to both areas here but the fed plays a very important role and we noted is doing more with your leadership. >> thank you i appreciate your kind words and to say how much i appreciate you inviting me here to testify that i have enjoyed cooperating with you and appreciate your leadership and their wish you the best in the future. >> my parting gift is that at least we will give you more lunchtime with an early release laugh laugh we are adjourned. [inaudible conversations]

cement the best to you in and the best for the country. [inaudible conversations] and [inaudible conversations]

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a >> carnegie talked about the burning of chemical knowledge so he would understand things from a scientific point of view, an

engineering point of view whereas other people were still going on the seat-of-the-pants operations. >> i think by looking at some of the materials we have selected here that carnegie really has a love for learning and through this wonderful institution found that this would be a way for the public to escape into another world. >> that and a real way, the long-haul of that story is back black people in pittsburgh and this ohio river valley became part of a new industrial

environment that really took off in a period after the civil war. >> these are really great insights into just how self-conscious andy warhol actually was. i think a lot of people have a vision of him being really cool and aloof. he was definitely cool and aloof but it came with a lot of work.

next, 2016 national book award winner georgia congressman john lewis talks about his graphic memoir of the civil rights movement. then 2016 national book award winner andrew aydin discusses race in america. democratic congressman john lewis of georgia shared the prize for young people's literature for a graphic novel about his civil rights activism. at the national book festival in september congma