>> do you want to start? [laughter] >> give is a good story. [laughter] >> i am going to take you back. it is august, or july, of 2003. i don't think i have been in the job three or four months. and we have the infamous 28 pages of the 9/11 report that classified related to saudi arabia. we are sitting in the oval office and the foreign minister of saudi arabia and the president. i am condi's deputy at the time. president bush says he will not declassified. the saudis get angry. for the first time, there is an official break.

the saudis have been very aligned after 9/11. this is a turn. i decided i'm going to go and represent the president in saudi arabia. so i have never been. i called everybody. the state department. the cia. everyone would get me ready. they are consistent in one thing. absolutely, you can go. the saudis will view it as insulting because you are a woman. i don't know, how would i know? so i wait for my right moment to approach president bush and say to him, looked this is what i have been told. and you are not into her my feelings. maybe this is really important. maybe it is better if you send somebody else. and you know, i am happy to bow out. the president is quite irritated and says to me, it is not your choice. it is mine.

what you don't understand about the saudis is that they won't care if you kind of were a big purple dinosaur. the fact of the matter is, you -- >> did he just say big purple dinosaur really? >> no, he didn't very -- he didn't. [laughter] >> we almost made twitter news. >> anyway, i spent a tremendous amount of time in the kingdom dealing with all levels of government, including there secret service, and i was treated incredibly well. a postscript to that, in my private life now, i also have business to travel to the kingdom, and i have continued to be treated very well. it is not because i am a woman, and my voice or opinions are not

taken seriously. quite the opposite. someone once said to me, you are more effective because saudi society treat you politely, so you have the best of both worlds. >> what is your best saudi story? >> the first time i went to the kingdom, it was in my prior job. i asked for advice, and i would just echo what fran said. the key factor is, you're going as a representative of the president. now, whether it is saudi arabia, which we have a long and productive and close comparative partnership, or frankly, yemen, which i have been more to than anybody else in the administration, they are very different environments, but the key point is, i have been sent

as the president's emissary, and that is important to the president with whom i am meeting in yemen or going to turkey and going to see that king of jordan. the same doors are opened because i am going at the request of the president with a message from the president with civic things to discuss from the president, -- with specific things to discuss from the president. >> to be fair, i don't think we can be fair about michele flournoy's book, she did not like the title, but she said she has two daughters, and there are key moments in their life. but i am just interested, there is this sense that part of the reason that national security positions are nominated by guys is that they are not worded by

other responsibilities. so my unfair question to both of you, can national security women still have it all? >> yes. look at something like susan rice, you know? clearly a national security woman if ever there was one. if having a beautiful and well-adjusted family and being at the top of your game in the national security profession is having it all, then absolutely. >> ditto on the power. there are a lot of examples, which i think proves that we can. look, i think in fairness, to be very kind of, honest, i tell young women coming up, you can have it all, but mostly you have to have it in sequence. it is not about having it all at the same time. in order to do that, to get to these periods with children and a family, everything has --

everyone has to be signed onto that. my children were very little when i was at the white house. i could not have done a if i did not have a phenomenal nanny and a phenomenal spouse who was signed on. i could not take the gift of the doctor, that was just not possible. i could not go to parent-teacher conferences, it was not possible. but people were ok with that. so you can have it all as long as you have signed on to the program for a creative time, and there are going to be sacrifices. the time that i gave up with my children when i was -- when they were little, i can't get back. one is grown and in college now. but we were all proud of the fact that we had done this for of time, -- a period of time. >> and i also would say having it all means making choices. i believe firmly, you do what you want to do.

whether that is doing things in sequence, prioritizing at one point in your life or another, having it all is really making those choices, the freedom to make those choices. these are all folks who have had wonderfully supportive houses and the means to do this thing. obviously we have to be realistic about that as well. >> we have to talk about the sony movie. it is a broad issue of cyber. when you look at cyber crime today, a segment on msnbc that was pushed back, talking about the revelation, hacking, and international. despite the humor of it, a lot of big issues related to this. whoever did this nation or group, there is a fragility that seems ready profound in the i.t. and cyber world. the second part is when

governments. this is an area where the speed is rocketing up in terms of the capacity. i am wondering if we are prepared. how much of the dashboard is still with this kind of subject. >> we have taken a lot of steps to harden our own defenses, physical and will, but we have to do a lot more. i think cyber is the place where our two hats and cyber security really comes together, whether it is infrastructure protection on the homeland security side or dealing with international or the threat of terrorist actors using cyber as of that were for the attack. i personally think we need to

use the lessons that we have gained from a decade plus of counterterrorism improvements, both structural -- trollope -- structure, policy wise and culture. i am working hard to drive the policy apparatus and the national security community toward we have to learn the lessons that have been so found -- so beneficial to bring all of the tools, the whole approach, diplomatic, criminal justice, prosecutor it -- prosecutorial resources. >> i think to add on what lisa is saying, this is an area where there has been bipartisan support. the administration talks to many, not just me. we could use a national fiber

serif -- national cyber terrorism. we do not have a single national cyber center. each of the department like the 9-11 counterterrorism days. what's with the legal authorities be? a national center work permit you to do that. it would be nice if we could learn the lesson we learned post mine-11 from a physical attack. >> i read a lot of novels and have been reading david ignatius novel lately. it is all about your work. there is one novel blood money and another, the director. in it it is about the terrorism

world converging. right in the seat -- sweet spot about what to write about. from what you can do and also to the point that you realize the notion of liberty we have and a certain degree of freedom, and the ability to be naughty is over in the coming world that people can intervene. you seem so relaxed and nice and cool people. if you know the world is so dark and what is coming, how do you have this detached and relaxed person that i think you are? >> i would be worried i would make a lot of people nervous. i think there would be a lot of people that would question that i am as relaxed and forgiving as you indicate. one of my staff members here may argue with that.

we have to learn lessons. we have just someone that can be productive. there is a lot about stuff in the cyber realm and with what we are confronting. >> do you ever wake up in the morning and things feel good? >> no. >> i said this to someone the other day. i have developed a loathing response to the ring tone on my blackberry. it only goes off in the middle of the night. on a monday night it went off to tell me about the horrific attack. i only get bad news at that time of night. frankly, when i meet every morning with the president, along with susan rice and others

to talk about overnight intelligence briefing and the issues we are confronting of the day, it is never good news. but the plus side is, i have the greatest job description in the world, which is i get to help keep people safe with a huge apparatus and tremendously dedicated professionals and the community across the board. >> the joke was when i would show up unannounced to the door of the oval office, i was a little black cloud. i could kill a conversation, stop by meeting just by walking through the door because everyone knew if i showed up unannounced it is because i needed to speak to the president of the united states at that moment. it was clear the room so i could talk to him.

the converse of that is also true. >> so i feel very confident that john brennan does not get to run in and tell the president we have bin laden. good news travels around me. bad news came to me to deliver. you accepted that in the job. >> 100% true area deciding when to make that phone call. those are key moments. >> how many calls did you have to make? >> the first one was literally my third week in the job. calling the president to tell him one of the boston bombers was dead and another was still at large. it is not a decision i hesitated about, even though i was three weeks on the job and have never woken him up to be sure.

>> is he a nice guy at 3:00? >> i think we are divided that part of the conversation quickly. i knew he would want to know because there was a public safety issue. there was a manhunt underway. we did not know what else could follow. making the decision to go back to where we started, your job is knowing quickly and with relatively little and invariably perfect information, when to make the call, when to interrupt and go to the oval office to be the person who clears the room, and that is something you learn every day. >> i want to ask one last question. and tried to get back to women in these roles. i don't know her name, i don't

think any of us do. the woman in the cia that played such of pivotal role in the intelligence to track the courier. she was the spark who really take things in a different direction in trying to get bin laden. in the limited amount of investigation i have done around the this, i am left with the impression that the cia is a male dominated culture that took a long time if ever to appreciate the role she played and finally left intact because there was no room for advancement. she had been passed over so many times so that story, when he think about women of washington, she would be a woman i would like to interview on the stage. it is not a good one when it comes to these issues. i would like to get your take, not on that particular issue perhaps but the culture of intelligence.

>> interestingly enough, she was not the spark for this. multiple directors have been worried about this issue. as secretary albright, myself, a group of us if we would please look at this in shut -- this issue inside the cia. i think this started with director panetta. we looked at women in the cia, promotion pass, what we could do to encourage it. this is not just a quality issue. a very important issue but also in terms of intelligence gathering, women bring different tools, have different access, especially in this part of the world. so it is an important national

resource issue in terms of making sure women are competitive. i guess the outcome of that is there are changes made. it was considered a problem in the problem that required attention at the director level. multiple directors had taken it on to address it. even though changes take time to bring about results. it is not just an issue of cross but the cia. the other thing i would say about the woman you're talking about, in fairness to the institution, no single analyst, because i was there when we put the pieces together, this is a team. it is to some degree how she was

treated was a result of claiming credit for herself that was shared by a team. when you think about how women in the national security area, how do you break the path that is broken? by him large women i have dealt with in that arena, are that result, not about credit. part of her issue is this is about credit after the fact. it was a team, it really was a team. she deserves a lot of the credit but not all of it. >> i think it is not just an issue in intelligence but law enforcement. the issue up promotion pass, success in -- succession planning, making sure as a leader and organization you are thinking about the past. what i would say, and it will

take time to change, i am getting tweets almost daily by incredibly talented women in the intelligence community. that is what i am seeing. it is tremendously exciting. on the operations side, that may be a different pipeline. there is real talent there and we have to make sure the changes fran is alluding to take root. >> it is worth saying right now, number two and number three are both women. there is a good future including operation. >> and department of defense on an act and basis. >> let me open up the floor. >> it is not so much a question that breaking news.

sony noted they pulled the release and not releasing the sony interview. that just came through. >> i am so glad you brought this up. >> just before we walked in, a number of theaters said they were not going to carry the release. i must tell you how wrong i think it is of sony in the theaters. when you are confronted with aa, the idea is to not kidnap and them in the noise -- in the nose. the notion that sony and the theaters is ridiculous. what will happen if there is a david ignatius novel that pokes fun at the regime in russia and all of a sudden they get attacked by the russians, are they going to pull it then you go i think it is a horrible idea and president.

>> we will bring a mic to your. >> i work and study in the city. could you take a survey. i was thinking about the remarks, specifically the associated forces elements. could you take a look at that? also, the team had a note about the president's judicial nomination. 305, which beats this point for any of his predecessors. could you explain the acronym is -- acronym some as we go through.

>> he is tremendous. on the piece, authorization for the use of military force, the president has stated quite clearly he wants to work with congress. he would have strong bipartisan support for military action for the work in theory a indirect. i took my lawyer had off when i went to the white house. i think it was great congress was able to push through a huge chunk of judges into the system because we need them desperately.

>> dedicated denial of service attack. that is when you try to log on and will not come off, there is some failure. there is a flooding to deny it by traffic. we saw this in the financial services sector leading up. miraculously the attacks stopped once we had those negotiations. you will see more of this. frankly, what you hear on the private sector, financial services in particular, there needs to be a better, stronger relationship with the government. the government understands those sorts of attacks are generally used against the private sector to put pressure on the government. there's a burden in the private sector.

there is a tremendous cost to that that companies bear and while there is a dialogue, there needs to be more. >> sarah harvard, the huffington post. could you speak about that terrorist nation and how this affects u.s. policy. two key u.s. partners in critics than have been removed from tier three status and how the concerns may be affecting other potential u.s. partners. the other question i have is about how concerns around gender-related violence with the islamic faith and how that affects you in u.s. foreign-policy. >> whatever designated list and gender related violence. >> on the designation blessed, i am not familiar with what you are referencing, but it is one of the tools we used to great

effect. you mentioned david:, who has done wonderful work in this arena. -- david cohen. i think we need to do more. if we can stop the flow of money, that is a key ingredient to depriving the actors from the lifeblood that allows them to perpetrate really heinous crimes. >> does cuba automatically, the state-sponsored terror list -- terror list. it is a separate announcement today that he asked secretary kerry to undertake a review, review asset that is guided by a statue. he will move out on that. >> did you want to comment on the gender issue. one of the concerns is there are a number of female hostages, violence, rapes, forced slavery, modern slavery.

we all know that is horrible, but to the degree you begin thinking about how you undermine the legitimacy in the eyes of the region -- what would be your advice? >> again, i think there are several issues to look at when you consider this. just last week isis release of pamphlet for how to treat women. you can rape them. -- rape them. basically women are the spoils of war. as horrible as that is, understand when you're talking about taking the enemies women and raping, murdering, torturing and abusing them, it is part and parcel of a genocide. i am not going to simply conquer enemy, i will eliminate my enemy. we have to understand it is part of the strategy. somebody said to me it is a

cultural issue. would we say slavery or racism is a cultural issue cap of this is a human rights issue. we have to approach it just as we what any of the other issues and take it on directly. i do think in terms of the narrative piece, this is part and parcel of how you counter the narrative and have people understand the moral bankruptcy of what they are suggesting. i want to make this the context of an islamic religious argument. this is not. this is a moral argument to me him and we have to be willing to confront them on that. we need all of them to tackle this. >> well, yale. -- will. can you talk about the factional

fighting in libya? >> this is something that france referenced, the intent is almost to branch out, whether it is in libya, taking up the calls for allegiance, from the extremist group in egypt, engaging to form these links. i think that is a huge area of concern. both expanding and this seems to be happening, right? throughout africa you see groups mimicking isis and also making efforts to court made and communicates with isis. have you shut that down? >> this goes to the effort fran talked about with counter extremism.

goes to the narrative of reducing that they're somehow in sensible. we saw them making a series of inroads and have freedom that was not checked. and gaining currency amongst others in iraq. we have done a lot to push back on that. to one that we had to do more into it with a range of voices and partners. you saw the first military action taken this summer, late summer in september with five gulf countries, including a woman pilot. >> the islamic state came out and said they wanted to crucify. >> derek quick. -- very quick. >> earlier you mentioned the new political actors you call terrorist. unfortunately for you you work as a bureaucrat -- you have to start thinking like

them and be creative. >> thank you. >> i am chris with the virginia quality bar association and will turn it back to sony because i spent 18 years in hollywood. it was really interesting the progression and i totally agree was should not given to the people but this morning talking about losing $100 million. then they canceled the new york premiere, and now they have canceled the entire thing. on the one and we cannot given to them but on the other and they are creating a huge potential problem financially in the financial markets. almost 7% they have lost.

>> let me take your question and piggyback. because when janet napolitano letter job, one of the discussions we had with her was how you balance responding to threats in a way, and yet you realize the society and the strength is running normally, and not being believed -- being bullied. put it into the broader issue or how you look at the whole swaths of your jobs. how do you create a healthy balance? there are people that only think about the problems. interesting that tony abbott told everyone what you can do is to continue to go out and live your life normally. it is holiday time, enjoy.

how much of that becomes your discussion internally? does that ever affect the decision you make as to whether you announce or not? >> you have to do that to make sense and be safe. i think we have evolved in favor of giving more information in doing so responsibly. there is to challenges. one is strategic that you just mentioned, and day to day dealing with the crises that come up of invariably. it is a very tough challenge. i face it and assume fran did and making sure you are taking the steps you need to to respond to an individual crisis and not losing the strategic focus because you will need that when you need to respond to a particular crisis because you have to be concerned about the second, third, fourth order

effects of any action you take. >> when the prime minister made the statement, i hearkened immediately back to right after 9/11 when president bush signed keep shopping -- that keep shopping, go out and was criticized and made fun of. the point to that is right. you have to have confidence and a sense that your government, people like lisa, and the tens of thousands of public servants like lisa are dedicating themselves 24-72 dealing with the problem and threat so that you can go about living your life. there is going to be an impact on sony. sony bears the responsibility for that. in terms of measures they took or took inadequately to detect the system. there will be an impact there.

there will be an impact on the financial services sector. there is a balance and cost to it but i do think this sends a horrible message, because this is not a one-off. the studios will face this problem again so we need a better framework. >> does there exist an arm within counterterrorism and homeland security for the islamic leaders, organizations or institutions domestically here to work with you on strategies in the narrative in the war against terrorism? >> before you answer, i will grab a couple in the lightning round because i feel guilty. >> i am linda, and i want to say

dance in the periphery of intelligence and two of the most respected individuals i know. my questions on russia, if you could touch on that because it is going downhill fast. >> reporter with foreign policy magazine. a few weeks ago vice president biden spoke about the roles of some of our allies having important rebel groups in serious and was criticized for having spoken about that, but a lot of it was mentioned before. some of the american allies this english between the good terrorist who support certain political objectives that a particular ally has versus bad terrorist who they want to go after. i am particularly talking about

the case of pakistan. >> good terrorist versus bad terrorists. >> we have a couple of questions that i will attack on my own. or in the first part of the obama administration you did not see much backstabbing going on between the national security divas and the team. the bush administration was right with backstabbing. -- ripe with backstabbing. i am interested in whether you think in addition to asking about the good terrorist versus bad terrorists question, russia and whether there is a new arm and homeland security about what environment is better for smart national security making? is a better when you have a competition of rivals or better to keep it all fields and bottled up?

>> i challenge the premise. i think more and better and robust views in argument are always going to be better. that is what i am trying to get at the situation room. >> interesting. >> with regards to homeland security arm, we are doing a lot in an effort to deal with communities on violent extremism and you'll see more of that in the coming months. >> i would say to you, welcome to the past two years of any president who serves two terms. >> i do think some of that is almost inevitable by virtue of time. i do not think that is unique from one president to another.

we need more outrage, involvement of the islamic community, and i think we need the same thing right here. i would encourage the administration to do that. russia, i am deeply worried that putin has taken that signals or misread signals from us as we miss so he sees an opportunity and lack of engagement. watch this space because i think our allies in eastern europe feel full marble. i think putin will continue to be aggressive. good terrorist that terrorists. when i sat in the seats i used to say there is a real thing difference between those who simply hate us and those that want to kill us. i was about those who wanted to

kill us. while the people who hate us are offensive, in terms of bandwidth and hours in the day, you have to pick your battles. you are both extraordinary. thank you for your candor and humor. happy holidays. thank you so much. [applause] >> at the end of the year, the last women of washington, thank you to -- for being here today. thank you to everybody. [captions copyright national cable satellite corp. 2014] [captioning performed by the national captioning institute, which is responsible for its caption content and accuracy. visit ncicap.org] >> on the next washington journal, the obama

admnistration's foreign policy challenges. john the galling -- john mclachlan on the cia's enhanced interrogation techniques. at a look at the impact of the medical device >> included -- medical device tax in the affordable care act. our guest is mark leahey. join the conversation. wednesday, janet yellen spoke to reporters. she announced there would be no rate hikes and discuss the impact of lower oil prices. this is a briefing from the federal reserve. it is about an hour.

>> good afternoon. the federal open market committee concluded its last meeting. the policy statement reaffirmed their view that the current target range for the federal funds rate remains appropriate. the committee also updated the federal funds rate indicating that the committee judges it can be patient in beginning to normalize the stance of the monetary policy. this new language does not represent a change in the policy intentions and it is fully consistent with our previous guidance which stated that it will likely be appropriate to maintain the current target range for the federal funds rate for a considerable time after the asset purchase program.

but with that program having ended in october and the economy continuing to make progress towards our objectives the committee judged that some modifications are appropriate at this time. i will have more to say about the policy decisions in a moment but first let me review recent economic developments in the outlook. in the labor market, progress continues towards the objective of maximum employment. the pace of job growth has been strong recently with gains averaging nearly 280,000 per month over the past three months. over the past 12 months, job gains averaged nearly 280,000 per month. the unemployment rate was 5.8% in november, three tenths slower than the latest available at the time of the september fomc

meeting. broad measures of labor market utilization have showed similar improvement and with the labor force participation down as noted in the statement, underutilization's continue to diminish. even so there is room for further improvement with too many people who want the jobs being able to come unable to find them, too many people working part-time that would prefer full-time and too many who've given up searching for a job that would likely do so if the labor market were stronger. the committee continues to see sufficient underlining strength in the economy to support ongoing improvement in the labor market. real gdp looks to increase in the third quarter reflecting solid consumption and investment spending.

smoothing through the quarterly ups and downs earlier this year, the real gdp expanded around 2.5% over the four quarters ending in the third quarter. and the available indicators suggest economic growth is running at roughly the pace in the current quarter. the committee continues to expect a moderate pace of growth going forward. inflation has continued to run below the 2% objective and the recent sizable decline in the oil prices will likely hold down overall inflation in the near term. but it's the effect of these oil price declines and other transitory factors dissipate and resource utilization continues to rise the committee expects inflation to move gradually back towards its objectives. in making this forecast, the committee is mindful of the

recent declines in market-based measures of inflation compensation. at this point of the committee views these movements as likely to prove transitory and survey-based measures of longer-term inflation expectations have remained stable. that said, developments in this area obviously bear close watching. this outlook is reflected in the individual economic projection submitted in conjunction with this meeting by the participants. as always each participant's projections are conditioned on his or her own view of appropriate monetary policy. the central tendency of the rate projections is slightly lower than the september projections and now stands at 5.2 to 5.3% at the end of next year in line with its estimated long-run

normal level. committee participants generally see the unemployment rate as declining a little further over the course of 2016 and 2017. the central tendency for the gdp growth was 2.3 to 2.4% for 2014, up a bit from the september projections. over the next three years the projections for the real gdp growth run somewhat above the estimates of longer run normal growth. finally, although fomc participants project inflation in the near-term to the lower on account of the decline in energy prices, they continue to see an inflation moving gradually back towards 2%. the central tendency of the projections is 1.0-1.6% next year rising to 1.8-2% in 2017. as i noted earlier, the

committee reaffirmed its view that the current zero to one quarter percent target range for the federal funds rate remains appropriate. regarding forward guidance for the federal funds rate, our october statement indicated that it likely would be appropriate to maintain the current target reach for the federal funds rate for considerable time following the end of the asset purchase program especially if it is the projected inflation continuing to run below the committee's two percent longer run goal. today's statement which indicates the committee judges that it can be patient and beginning to normalize the stance of monetary policy does not signify any change in the committee's policy intentions as set forth in its recent

statements. as before the judgment is based on the committee's assessment of realized and expected progress towards its objectives of maximum employment and 2% inflation. an assessment that is based on a wide reach of information including market conditions and indicators of inflation pressures and expectations in the reading on financial developments. given that the committee is not doing a change in policy, why did we update the guidance? the reason is that with the asset purchase program having been down in october it seemed less helpful to continue to communicate the best possible timing for a first rate increase with reference to an event that is receding into the past.

instead we have shifted to the language which reflects the committee's focus on the economic conditions that would make liftoff appropriate. and when it is rising at a healthy rate and the u.s. economy is strengthening reflecting in part to the highly accommodative stance of monetary policy. of course inflation has been running somewhat below the goal of 2%, but we project that is too close gradually over time. as progress in achieving maximum employment and 2% inflation continues, at some point it will become appropriate to begin reducing policy accommodation. but based on its current outlook, the committee judges that it can be patient in doing so. in particular the committee considers it unlikely to begin the normalization process for at least the next couple of

meetings. this assessment of course is completely data dependent. if incoming information indicates faster progress towards the committee's employment and inflation objectives, then the committee now expects increases in the target range for the federal funds rate are likely to occur sooner than are currently anticipated. conversely, if the progress is slower than expected cut in increases in the target range are likely to occur later than anticipated. once we begin to remove the policy accommodations, it continues to be the committee's assessment that even after employment and inflation are near mandate consistent levels, economic conditions may for some time or around keeping the target federal funds rate below

the levels the committees use as normal in the longer run. this guidance is consistent with the paths for appropriate policy given by the participants. assuming that the economy evolves in line with the participant expectations, almost all participants believe that it won't be appropriate to begin raising the target range for the federal funds rate in 2015. there are views on the appropriate timing of liftoff within the year in part reflecting differences in the participant expectations for how the economy will evolve. by the time of liftoff, participants expect to see further decline in the unemployment rate and additional improvement in the labor market conditions. they also expect core inflation

to be running near current levels but foresee being reasonably confident in their expectations that inflation will move back towards the 2% long-run inflation objective over time. of course as i previously emphasized, the timing of the initial rise in the federal funds target as well as the paths to the target thereafter are contingent on economic conditions. by late 2016 the median projection to the federal funds rate at 2.5% remains more than a percentage point below the longer run value of three and three quarters percent or so projected by most participants. even though the central tendency of the unemployment rate by that time is slightly below its estimated long-run value and the tendency for inflation is closer towards the 2% objective.

fomc participants provide a number of explanations to the federal funds rate running below its normal level at that time. in particular the residual effects of the financial crisis which are likely to continue to constrain household spending and constrain the credit availability for some time. but as the factors dissipate further, most participants expect the federal funds rate to move close to its longer run level by the end of 2017. finally, the committee will continue its policy of reinvesting proceeds from maturing treasury securities and principal payments from holdings of agency debt. the committee' sizable holdings of longer-term securities should

help maintain accommodative financial conditions and promote further progress towards objectives of maximum employment and inflation of 2%. thank you and i will be happy to take your questions. >> a number of officials projected in the lead up to this meeting that was likely the timing for liftoff was around the middle of next year. i wonder if you could clarify that. you said in your statement that it's not for at least two meetings. the forecast seems to be consistent with something like a middle of the year lift off. can you speak to that and can you also speak to that which we are seeing now in particular the market-based inflation expectations and whether that

gives the committee any hesitancy in the months ahead? >> i did say the statements the committee can be patient should be interpreted as meaning that it is unlikely to begin the normalization process for at least the next couple of meetings. now that doesn't point to any time at which normalization is going to begin. there are a range of views on the committee and it will be dependent on how incoming data bears on the progress the economy is making. first, i want to emphasize that no meeting is completely off the table in the sense that if we do see see test progress towards our objectives, then it possible the process of the normalization

would occur sooner than we anticipated and of course the converse is also true. so at this point we think that it's unlikely that it would be appropriate that we would see conditions for at least the next couple of meetings that would make it appropriate for us to decide on the normalization and a member of the participants indicated that in their view the conditions could be appropriate by the middle of next year but there is no preset time and there are a range of views as to when the appropriate conditions will likely fall into place. so, something that we will be watching closely as the year unfolds.

you asked also i think about inflation and as i mentioned in my press statement, especially with the downward pressures on inflation that we expect to see for a little while because of declining oil prices and import prices, we certainly expect headline inflation to be under downward pressure for a while. and as i mentioned most participants do envision the conditions will be appropriate during this coming year to begin normalizing policy and they do largely expect that inflation will be running close to its current level. headline inflation could even be lower. but they would want to have a feeling of reasonable confidence that when we start the process

of normalizing policy that it will be moving up over time, and of course, if the labor market conditions continue to improve, history suggests that as long as inflation expectations remain well-anchored that that is likely to occur. >> marty, associated press. given what's happening, there seems to be a pattern that the market expects big news to come when you have a press conference and good news to come when you don't have one. is that a good expectation and is there any thought to have a press conference at every meeting? >> i would like to discourage that expectation.

every meeting that we have is a live meeting in which the committee could make a policy decision and we go feel free to do so so i would discourage the expectation that policy moves can only occur when there's there is a scheduled press conference and we have long had in place the ability to hold a press conference and we did do so on a number of occasions in earlier years. so, the committee clearly wants to be all to explain its reasoning for normalizing the policies. every meeting is live and if we were to decide in a meeting to

begin to normalize policy i would hold a press conference call. (inaudible question). concern expressed at the meeting that the signal coming from markets, lower oil prices, lower yields around the world, was one of deflation and one that risk was should perhaps overshadow the concern about inflation on the other side? >> well, thanks, steve. to global attentive developments and certainly in the meeting. the very substantial decline seen in oil prices is one most important developments shaping the global outlook. different effects

in different regions and could financialeffects on markets as we're seeing. of the the judgment committee is that from the standpoint of the united states u.s. outlook that the decline we've seen in oil prices be on net a positive. it's something that is good for families, for households, it's putting more money in their pockets. having to spend less on gas and energy. it's like a tax cut that bests their spending power. the united states remains although our production of oil has increased dramatically, we remain a net importer of oil. there may be some offset in the drillingeduced activity and possibly some reduction in plans

in the drilling area. but on balance i would see these developments as a positive for the standpoint of the u.s. economy. deflation, weo see downward pressure on fromine inflation declining energy prices. we certainly recognize that that pushing downe headline inflation and may even extent to to some core inflation. but at this point, although we monitoringe're inflation developments carefully, we see these as transitory. to the committee continues believe, especially with the improvement we're seeing in the market, which we expect to continue, that inflation will toward 2% objective

over time. as i indicated, we will want to feel, i believe that people will expect to feel reasonably confident about that when they, the process of we doization begins, but expect them to be transitory. >> madam chair, there's a big pace marketshe expect you to raise interest rates and the rate you've in your -- are markets misunderstanding intentions? >> so, that's difficult for me to say. what i want to say is that our to communicate as clearly as we possibly can about we see thend how unfolding.vironment when the participants in the theirtee fill out projections, they're asked to of the federal

variouse and of the economic variables that they consider most likely. not asked to talk about all the different things that could happen, recognizing there uncertainty, and the funds rate they would consider appropriate if those other alternatives would happen. alternatives i think are priced into the market. and one reason that the market prices may be different than the committee's is because they place probability on other outcomes that look different they regard as the mode al forecast. may also have a different set of expectations about how and howomic outlook it's likely to unfold. so i recognize that there are significant differences, i can't

tell you exactly what they're do want to doat i is communicate as clearly as i of the committee, how we think the economy is and how werogress, would likely set the federal if thatte over time out.ast bears >> it doesn't make you feel uncomfortable? >> there are a number of different factors that are path of market interest rates. i think including global developments. it is often the case that when theprices move down and dollar appreciates that that downward pressure on inflation compensation and on longer term rates. have safe haven flows that may be affecting longer yields.asury

so i can't tell you exactly what is driving market developments. is we'rei can say trying to communicate our thoughts as clearly as we can. >> i was just hoping you could go into a little more detail oil effect. even though you see it as transitory, does that give you a little more room to keep rate low this the next few months? crisis bound back, what will that do to your change rates and how might youry act to that? say, i think what we've seen since the mid 80's is in an environment where inflation expectations are well anchored, that movements in oil and commodity prices and import

prices tend to have transitory inflation the outlook. there were many years in which unanticipated increases beginningces, really in 2004 and 2005 to put upward on headline inflation, and sometimes even spill through core. lookypically the committee through those impacts on inflation with the view that transitory.e and i think experience bears out that they were transitory. i think that's the committee's expectation here, even core inflation has been running below our inflation objective. oil, now downin and perhaps later up, will move inflation around, certainly inflation.

but the committee at this point anticipates those impacts to be transitory. so as long as participants feel reasonably confident that the inflation projection is one where we expect to meet or to objective over time, that's what i think they'll be decide at things as we on the path for the funds rate. projectionsttee's show unemployment running below your own views on where full employment should be for the next several years. does that reflect a desire on the part of the committee that aabove potential for a while? if so, can you elaborate on why it wants that? and related to the question john declined --r you been pronounced in the forward range, so we're talking about expectations that inflation years from now be

below mark and some see that as decliningf credibility in the long-term objective. why do you still view that as transitory? question, your first is why is it that the committee decliningloyment as slightly below its estimate of run natural rate. and i think in part the reason is that inflation is objective, andur the committee wants to see toward ourove back objective over time. period of a very slight under shoe, of unemployment below the natural slightlyl facilitate faster return of inflation to objective. it is, i should say, a very

small undershoot in a situation where there is great uncertainty about exactly what constitutes a longermployment or run normal rate of unemployment. do see the different labores of slack the market, point to different what maximumf just employment is. standard unemployment rate for quite some time now has been signaling a little bit less slack in the labor market than measures that are somewhat broader that, for example, unusually large number of people who were employed but would prefer full-time jobs.

and the portion of the decline labor forcen participation that looks like it or bedisappear in a eroded in a stronger economy, it may be that with a very small undershoot of this longer run normal level of the unemployment rate is measured by unemployment rate, we'll be seeing some further progress on those other margins of slack. it's important to point out that the committee is not an overshoot of its 2% inflation objective. oh, and longer dated expectations. i would say, we referred to this inflationtement as compensation, rather than inflation expectations. the gap between the nominal

yields on 10-year treasuries, havexample, and tips declined, that's inflation compensation, and five year five forwards as you see have also declined. that could reflect a change in inflation expectations, but it inld also reflect changes risks.ent of inflation the risk premium that's necessary to compensate for inflation that might especially have fallen if the problem very highattached to inflation have come down, and it also reflect liquidity effects in markets and for sometimes the case that when there is a flight to beety that flight ten to concentrated in nominal treasuries and could also serve that spread. so i think the jury is out about how to interpret that

downward move in inflation compensation. and we indicated that we are monitoring inflation developments carefully. chair, i want to follow up if i could on firming going normalizationt once liftoff takes place. i know you say it's going to be dependent. does that suggest to those watching that the measure pace we've seen in the previous cycling those quarter point increments, that that's not something market should expect? your own take away from how effective that measured that previous cycle. and there were three dissents, a notable number, what does that suggest about the debate around the table and your ability to consensus going forward? are you disappointed with the number of dissents? theo let me start with number of dissents.

there is a wide range of opinion in the committee. it's appropriate for people to be able to express views. and in the sense you see both sides, i think good job oft does a reflecting what the majority of thinks istee appropriate policy. so at a time like this where we consequential decisions, i think it's very divergences ofee opinion. and just remind me what was other -- measured pace. there certainly has been no of then on the part committee to move at a measured pace or to use language like that. i think quite a few people thatng back on the use of

language in the, i can't remember if it was 12 or 16 there were 25 we wouldnt moves, probably not like to repeat a sequence in which there was a and 25 basis point moves at every meeting. don't want to encourage you to think that that.will be a repeat of many members of the committee have said they think policy should be based on actual evolution of economic activity and inflation, which variable over time, and that's why i say i be datate it will dependent. we have continued to provide same guidance that we have for some time that says anticipates that even after employment and inflation are near mandate

consistent levels, that economic conditions made for some time warrant keeping the target federal fund rate below the levels the committee views as the longer run. i know that's a mouthful, but it effect that the committee believes that the economic conditions that have made recovery difficult were areing beyond them, they optimistic that those conditions will lift. run normale longer asel of interest rates around three and three quarter incent, so there's no view the committee that there is secular stagnation in the sense we won't eventually get back to pretty historically normal interest rates. but they have said it will, you required toonomy is get where it is a good deal of monetary policy accommodation we

expect to be able to normalize policy. but until those conditions have have held backt economic activity, monetary to stayill need accommodative. so perhaps that's equivalent to saying that the path of normalization is anticipated to relatively gradual. but again the path of rates will depend on how economic conditions actually evolve and nothing more than an expectation on the part of the committee. >> enough about rates, i want to york fed.out the new the new york fed has been in the news a lot lately. bedley was invited to congress to testify about conflicts of interest there. like the cigar

the bien report, and that a fed official was exchanging information with someone at had fedsax who also connections. scandalsthere were .ith freed do you see this as a plaque mark? have you talked to bill dudley about reforming the image of that particular regional fed ath him and do you think person that spent 21 years of his career at gold man sax is in regain public credibility about conflicts of interest? say that i think it's very important for the federal reserve system to have the quality of its supervision. and i do have, i have a good deal of confidence in the quality of our supervision

program, for the banking organizations we supervise in and that also applies to the largest banking organizations. we rely on examiners who are in the field and at the reserve banks to be providing information about what's happening in those organizations. but that information feeds into which it is not singleuals at any reserve bank but at the board, led process and it involves senior officials at a different reserve banks. it's also a multidisciplinary process that involves not only people from supervision but markets, from economic research, experts focus on financial stability all come together to

evaluate the information that and to assign ratings and decide on the appropriate program for all of those large institutions. strengthened the process of supervision enormously since crisis, and i feel a very of confidence in how worry carrying that out. now, it is important to make fed into thisave process, with the information van to making the right decisions. and while there are individual mayare examiners who disagree with others in their how to interpret what's going on at a particular

institution, it's important that channels by which they disagreementsthat are fed up to the highest levels. this is true throughout the work we do. we do economic forecasting, and fomc receives information to help us make obviously there are disagreements among how tosts about interpret coaches. it's also important for us there we understand alternative views. so this is important in supervision. announced that the board is under taken a review of not there are appropriate mechanisms in place reserve banks that individuals who disagree with make those, make their own views known and feed interest the process and we've asked our inspector general

to look into that. >> i would also like to get off and ask youicy about the finish's relationship with congress. worried are you about legislation that has been proposed that would reduce fed independence? would you see yourself trying to fight back or would you see torself trying to go congress to work with them to do transparency or something else to reduce their concerns? making them law. sent tohere were bills the white house, would you talk to the president about detailing do you have any confidence that he would veto would reduce the fed's independence.

thanks. >> so let me simply say that congress has assigned us important tasks in monetary in other rules that we perform. is the federal reserve highly focused on attempting to that out the mandates congress has given us in the policy.monetary it's our dual mandate to promote maximum employment and price stability and that's what we're working on. say that theould ability of the central bank to the decisions about monetary policy that it regards the best longer run interests of the economy free of run political interference is very important to the effective conduct of monetary policy, and i think history only in the united states but around the world that

central bank independence promotes better economic performance. do think central bank independence is very important. that it's important to make we can make the decisions we think are best free short-run political interference. policy.pect to monetary we should be accountable and we are accountable to congress in explaining what we do, i believe transparency and i believe strongly that we should communicate as clearly what we are doing in the rationale for doing it and i'm very open to looking for ways ourselves to improve our communications and transparency and working with that.ss to do but i would be very concerned

actions. explicitly8 congress passed legislation to ensure be no g.a.o.uld audits of monetary policy policyn making, namely audits. i certainly hope that will i will try to forcefully make the case for why that's important. i cannot speak for the white attempt to don't that. >> i'll stay off of interest wish and i first want to you happy holidays. >> thank you. >> and second i want to ask you about the russian economy. that come up in the meeting in your discussion about the imloabl economic developments? know there's a lot of concern about the drop in otherwise prices that the in someeconomy could be trouble. russia owes a lot money to u.s.

and foreign banks and russian companies. is there any concern about default, any concern about contagion? and if so, is the fed taking any for that?repare thank you. review, we certainly did global economic developments theuding developments in russian economy. hit veryussia has been hard by the decline in oil rube el is the in value,d enormously and this is posing a series of very difficult economic russianns in the economy. theourse we discussed what potential spillovers are to the states, which could occur both through trade and financial

linkages. but these linkages are actually small.ely russia counts for less than 1% volume.trade and u.s. banks' exposure to residents is really quite small in terms relative to their capital. in terms of the portfolios of u.s. residents, there are russian securities, but they very small share. the link anshat back -- thelinkages back to spillovers become to the united states through trade and financial channels would be small. europe of course is somewhat bothexposed to russia, because russia is an important supplier of oil and natural gas the financial

linkages are somewhat greater. of the unitede spillovers isthe pretty small, but we're closely. watching them >> also happy holidays. >> thank you, same to you. a contagion risk from low oil prices that people are markets.bout in what does it mean to the banks that have lent to the oil patch i guess low prices, and your warnings about leverage are you worried that they haven't been heeded? you. .

>> so you're talking about in exposure? states we have seen some impacts of prices on the spreads yield bonds, where there's exposure to oil see distresst may or decline in their earnings. increaseve seen some in spreads on a high yield bonds more generally. i think for the banking system whole, the exposure to oil, not aware of significant is the kind, this of thing that is part of risk bankingnt for organizations and the kind of look at in stress tests. but the movements in oil prices

large.en very unexpected.dly in terms of leverage and whether levered entities could be movements ind by oil prices, leverage in the financial system in general is way down from the levels before the crisis. not a major concern that levered entities that would be badly affected by this. we will have to watch carefully. there have been large and movements in oil prices. >> good afternoon.

to interest rates if you don't mind. actually it's a question about thebalance sheet effects on overall appropriate level of monetary policy, and reaffirming the reinvestment policy, the that thisonce again will help maintain accommodative financial conditions. it said that the large portfolio securities will downward effect on long-term interest rates. as you look forward to raising rates, to what extent does the fomc need to take into residualhe accommodative effect of maintaining a large balance sheet. >> so i agree and that's why we that we typically think policy impact of dependingpurchases as on the stock of assets that we

balance sheet rather than the flow of purchases, and so we're reminding the public that we continue to hold a large stock of assets, and that is push down term yields. and longer term we try to make clear when we our normalization principles in september that we intend to use changes in our target for the federal funds rate as the main tool that we use to ajust financial conditions, rather actively planning to sell assets that we've put onto sometimece sheet, after we begin raising our targets for short-term interest depending on economic and

financial conditions, we're reduce or cease reinvestment and gradually run stock of our assets. but our active tool for stanceng monetary, the of monetary policy so that it is economicte that the needs of the country, that will through adjusting our short-term target range for the rate.l funds >> i can believe nobody has importantthe most question about what's going on with your san francisco 49ers. since everybody has already a happy holiday. can you talk a little about housing? a few things are more important than their wealth creation and housing. you've in your statement noted a drag.continues to be

mr. dudley has, was relatively his forecast, i don't know if that's a view shared on the committee. what do you think is holding back?g what will you tell congress in the coming year? and a clarification on the dudley question from earlier, name.dn't mention him by are you pleased with mr. dudley's handling of events. let me start with that. i have great confidence this president dudley. job in runninge the new york fed. to be very clear that i have great confidence in him. a distinguished public servant and he has worked very aftermath of the crisis to make sure that the new york fed is doing all that it thes to do to contribute oh work that we do both in inancial stability and

supervision. and let's see, the other wastion that you asked about housing. so i've been surprised that housing hasn't recovered more robustly than it has. in part i think it reflects very credit, continuing tight credit conditions for any borrower that doesn't have credit, youine know, credit ratings. thaty hope is that situation will ease over time. household formation has been very depressed. is that as theon labor market continues to improve, and households feel better about their financial condition, that we will see

formation pick up and a somewhat stronger recovery than we've seen thus far in-housing. >> the director of the national economic committee talks to politico this morning about the economic agenda. we'll join the conversation live 8:10a.m. eastern on c-span 2. at 1:00 p.m. eastern, the armytor and chief of u.s. aviation gives an update on the army's aviation restructure plan. that event from the center for strategic and aternational studies 1:00 p.m. on c-span 2. secretary of state john kerry and the ang goa lan foreign

minister spoke with mortgagessers wednesday after meeting. >> it a great pleasure for me to chikotiforeign minister here in washington, and very opportunityate the to reciprocate the foreign minister's generous welcome to i was privileged to be summer.a last we agreed that we would engage in a good dialogue and an basis, which has been absent from our relationship, frankly, for too long. so it was really good to be able to welcome him here today to wetinue the dialogue that began when i was in rwanda.

before we begin, though, it is important for me today to say a of word about the release alan gross, and the decision the president of the united states shts.oday particularly i'm happy to be to talk about alan after the unspeakable tragedies this peshawar and sydney. are grateful to see alan home, reunited with his family, to feel and witness the this family is sharing today and that all the people in are sharing on their behalf. it couldn't be a better gift for season.day and i have, i had a meeting earlier today with alan and his

came back,y after he and shortly after i was able to abroad.rom my trip i want to say that judy, who we have gotten to know here in the over the course been months, years, has absolutely extraordinary. thathe has kept hope alive today could be a reality. we are all overwhelmingly happy alan is now free and reunited with his family and on soil.an i was a 17-year-old kid when i americanrd an president talk about cuba as an island.ed for five and a half decades since, our policy towards cuba remained virtually frozen. promote aittle to prosperous, democratic and stable cuba. no other country in the

world to which we have closed for as long as we have closed them to cuba. fell 25 yearsl ago. and the wall separating cubans has yet to come down. to on has this policy failed advance america's goals, it has isolated the united states, instead of isolating cuba. we havetruth is that reached out to countries where deeper thanre far they are with cuba. more recent far than they are with cuba. beginning more than 20 years ago i saw it firsthand how three presidents, one republican and democrats, undertook a similar effort to change the withd states' relationship vietnam. and it wasn't easy. still isn't complete

today. but it had to start somewhere. make no mistake, it has worked. made peace. we normalized rests. even signed a trade deal with vietnam. and anybody who has traveled you howday will tell much that country has changed and is continuing to change. things yet to achieve, of course. at we are dealing with country in which thousands of americans died during the course lifetime. situation with cuba. so today we have a choice. resistignore change and it or we can mold it and channel policies.new set of since 2009, when he first became hasident, president obama taken steps forward to change and to improvep

the lives of people in cuba by restrictions on business and family travel. with this new opening the president has committed the united states to begin to chart course more ambitious forward. in january, as part of the president's directive to discuss moving toward reestablishing relations, assistant secretary for western hemisphere jacobson will travel to cuba to lead the u.s. delegation of thenext round u.s.-cuba migration talks. forward, at the right time, to being the first secretary of state in 60 years to visit cuba. i president obama's request have also asked my team to initiate a review of cuba's as a state sponsor of terrorism. criticalnths ahead, a

focus of our increased engagement will continue to be cuban government's respect for human rights and democraticfor reforms within cuba. the change that president obama empower theday will cuban people who shape their own we all share 'ensuring that the people of cuba enjoy the political, economic and social freedoms that have spread throughout our hem is sphere. freedom of speech and entrepreneurship and an active help society will only reintegrate cuba interest the international community. than 50 years of cuba, a policyte that has obviously not worked and has isolated us more than it is time to try working build a cuban people to better and different future. new future is exactly what brings us here

owe la --the u.s.-act angola strategic dialogue. over the past months i have spoken often about african leadership. and this moment of promise and africans.or all we had the african summit here this summer in washington, first with leaders from more than 40 countries awe here at the same time to help shape the for the future. angola is committed to making of this moment through its very important role as a the region, particularly on security issues. and i was very encouraged today by the depth and breadth of our discussion. notforeign minister did come here today asking me for one specific program or another angola. today this foreign minister syria, aboutabout israel, palestine, about theine, and about

challenges that angola will face as a new member next january of security council of the united nations. so we have a different relationship now, and we need to build on it. angola is playing an integral role in bringing african nations together to forge an enduring in the great lakes region, the dprikssis in continues to trouble us -- in the great lakes continues to trouble us all. of the republic of congo has been the seen of the most horrific crimes of violence against women and girls that are imagine nabl. powerful reminder of the obligations that we all share. not only to end the killing and the fear, but to work at the new generation of stability and hope. santosto thank president for his personal commitment to that effort, particularly for chairmanship of the international conference on the

great lakes region. the president and foreign minister chikoti, their with regional leaderrers has been and remains critical for ending the threat groups in eastern d.r.c. a more group poses immediate threat to the stability of the recent than than the democratic forces for liberation of rwanda, or fdlr as they are known in the region. the united states continues to support a two-track approach to the fdlre threat of which includes demobilization, military efforts. and we all know that the six-monthies period for the peaceful surrender expires on january 2, just around the corner. choice is clear. fdlr chooses the path of demobilization, the international community, all of welcome it.

if the fdlr does not make that the d.r.c. military and u. n. peacekeeping mission must the regionre that delivers on its commitment to fdlr oncereat of the and for all. to emphasize that the great dividends of our extendship with angola beyond the d.r.c. oure after issue, interests, are aligning like never before. together ong maritime security. we're combating piracy. we're working against illegal fishing. we also discussed important like human trafficking, which has been a concern. and yesterday a senior delegation of angolan diplomats came to washington for with our team here in washington. we are looking forward in the days ahead to working very

la --y with ang owe angola. we actually began that discussion today. we're particularly pleased that angola has taken steps to join the chemical weapons convention. this is a treaty of conscience, and for nearly 100 years the has stood up for the international norm against the use of chemical weapons and of course of war. the reason is simple. nations are safer when these weapons cease to exist. think.you just to before russia and the united states came to an agreement to take chemical weapons out of syria, they were spread around the country. imagine what would have happened now. if we had not succeeded in weapons,those chemical when dash has taken tro control a large percentage of the country, it might have had

access to these weapons. have been aut to choice.ce i emphasize that the united assiststand ready to angola in meeting the treaty's obligations. the damage e of these weapons falling interest the wrong hands build compel all of us to consensus for action. ireign minister chikoti and also discussed the importance of by lateral trade and continue to grow the economic relationship between us, angola is one of the trading partners in africa, and their economy has remarkable growth in recent years. so we have begun consideration thewe will continue over next months and years to talk about the ways that the united oures and angola can grow trade and investment relationship. in particular, we want to deepen our cooperation in agriculture,

andnology, energy diversity infrastructure. when i was in london we talked at some length about those possibilities. these are the building blocks of a modern dynamic economy. i visited the port of rwanda, i met with energy company executives, and i about the numbers of anbolans that are being mired and being trained in that industry. i also saw first has been how improvingments are the business climate and angola's economic integration into the region. oweally leveraging ang ways. sohip in many we need to make sure that this progress continues. we stand,r that when we stand together, and when we nations that are trying to make the kind of today,s that angola is success.are in the

this is a moment great opportunity for the u.s. and angola partnership. it also a moment of decision. we would like to be angola's choice --of partner of choice. so we're making the right choices now i think on global and.ity and the u. n. so minister chikoti, thank you your visit. these are important days, as i've said, we need to work other, i rely on each know you do and we do. and we very much look forward to building the strength of the .artnership and i'm very happy to have you back here in washington. >> thank you. >> thank you, my friend. interpreter). >> first, to thank secretary for usor the invitation

to come visit the united states of america. at this particular time i would to thank secretary to rwandahis visits his visitnd after many things have been happening countries. two had thee after that we summit of african heads of state in the u.s. and during that meeting angola signed the bank us toent which will allow finance transportation projects andell as energy projects , and in angola we've been

accelerating our cooperation opened the way to the technical groups summit about the security and energy. gulf of guinea, which will take place at the beginning next year, probably during the first quarter. observed that the level agreements, and tifa and, are witness of a cooperation between angola and the u.s. our conversation today was especially important, because we talk about by latter

issues -- issues, as second kerry mentioned. rights, webout human talked about our agreements on human trafficking, and the we have amongat our institutions and both governments. the u.s. were happy with the chemical ispons convention which being reviewed by our parliament. of course all countries in the world should work towards world such weapons. therefore our meeting with the u.s. was extremely important, taken into account all the bilateral our cooperation. of course we talked about the

region, the u.s. what angola has been doing, along those lines. that the our contribution of grows.eace in that area that is a region that should already be in peace, but there rebel groups there, the collective efforts of the region allowed the en of the m23 and, but fdlr is still a concern is an item on our agenda. the international conference u. n.,great lakes, the local organizations are all to see andy hard

answer this. peaceful solution, and fdlr have to bide by their 2nd ofs up to the january. to demills will have tarrize and that is their compromise. will be watchful them to have to make their part. between theeeting international conference of african unionhe u.a.u. in this, discussed the importance this we all a duty to make it that those forces do their

we are ready to act if they don't. importantlked about state that secretary of mentioned, especially global security, the middle east, the syria,on in israel and ukraine. talked about we many issues, and our conversations show that we share opinion on all of them. and as far as the u. n. is tocerned, we will continue cooperate. conversing.inue of course and angola representing the african the other three

auntries will work in coordinated way with the and peace council of the african union. therefore, i would be remiss if the u.s. congratulate for the decision that president sanctions today about cuba, to start diplomatic relations with that a battleecause this is on oppositewere sides. for many, many years of theas this oppression cuban people for not being able to have a relationship with the u.s. congratulate president obama, secretary

because it was not see the u.s.o condemn cuba at the general assembly of the u. n., due to policies. u.s. was also looking at cuba as a sponsor of international terrorism, and this is all changing. bigger is better, and dialogue space that's beg open, cuba but with all the countries that supported . thank you for inviting me so