criminal suspects of their constitutional rights. that is at 10 a quarter p.m. eastern on c-span. and catch up on any landmark cases you have missed by watching them online at landmark cases. c-span.org. the book tells the story. manuscript isthis not what we thought, while also trying to chronologically think about what madison was encountering at the time. keeping those two narratives straight was quite tricky for a while. announcer: sunday night on "q&a," mary sarah builder "madison'ser book hand," which takes a critical look at thnotes james madison and before the constitutional convention of 1787. >> madison took his notes on

sheets of paper folded in half. at some point, he sold all these little pieces of paper together into a manuscript. one of the really wonderful things we noticed when we were down there was that the last quarter of the manuscript, the holes he had a sound did not match with the earlier ones. this confirmed my suspicion that the end of the manuscript had been written earlier. it was wonderful to see that in person. announcer: sunday night at 8:00 eastern on c-span's q&a. >> every election cycle we are reminded how important it is. the c-span a vehicle for empowering people to make good choices.

>> c-span is a home for political junkies and a way to crack the government as it happens. >> c-span is on. i think it is a way. >> there are c-span fans on the colleagues, they will say i saw you on c-span. be something on the history of grain elevators or a landmark supreme court decision. >> there is so much more that c-span does to make sure people outside the beltway know what is going on. >> i announce my candidacy. .> i am running >> for president of the united states. [applause]

his coverspublican politics. of my has been part research providing quotes and inside about people -- insight about people. all of the policy areas get coverage. >> how many nuclear warheads does the u.s. have aimed at russia? it lets me do the thinking and the decision making. morning. phone lines are open. start dialing in. >> you never know what you are going to get. i am your mother. i disagree that all families are like ours. i don't know many families fighting at thanksgiving. the miamiverage of

book fair. tv.t becomes book those folks are writing really great books. american3 becomes history. you have to watch. >> a congressional hearing or an era in history, there is so much information you can convey if you have that kind of programming. they are capturing history as it happens. it brings you inside the conversation on capitol hill and lets you have a seat at the table. >> i may c-span fan. >> i may c-span fan. >> i am a c-span fan.

>> that is the power of c-span. access for everyone to be part of the conversation. >> next, the federal reserve and how the fed makes decisions. current fed chair jared -- janet yellen was joined by ben bernanke, alan greenspan and paul walker -- paul volcker. this is one hour 15 minutes. [applause] >> welcome everyone. president of -- we are excited this evening to

have the fabulous for fed chairs -- fabulous for fed chairs. it is going to be spectacular for a variety of reasons. i want to take a cue for adam mckay. he wants said there is nothing that people love more than a federal reserve joke. [applause] i will tell you a joke. it is a joke by a federal reserve chair, who served from 1951 to 1970. you may have heard this but it is worth restating. he said the job of the federal reserve is to take away the punch bowl just before the party gets going. [laughter] ofwill learn the process taking away the punch bowl, or adding something to the punch in the bowl.

house,rd about this whose mission has been about values that promote empathy, respect, moral courage. you couldo question get some global perspectives taking an international course but nothing compares to the daily exchange here in this wonderful community. , study and dine. this makes these permanent bonds for -- forged here a hallmark for this institution for 90 years. it would not be possible for this to happen if there were people i need to recognize. from 150 different countries. they have 10 institutions across new york that represent 60

different fields of study. there is a lot of cross pollination. we are proud of our residents. ouruld like all of residents to clap and make yourselves known. [applause] we also would like to thank our trustees who do so much to help this place to keep it alive and relevant. could our trustees also stand and be recognized. [applause] we are grateful to our underwriters. every dollar of their support will go to fellowships here that enable our students to sustain this wonderful community.

morgan stanley three j.p. morgan ubse & co, bcg henderson, and bny mellon. thank you for your support. [applause] i will say quickly, throughout our history, we have convene thought leaders on international affairs impacting our demographic. tonight's event continues that legacy not just because of the panels of speakers. it is the inaugural event of the paul volcker program. grateful to paul. this is the first inaugural paul volker speaker program. justicewe have done him with this turnout. [applause] i would like to turn quickly to

what will happen on the stage. this conversation has less to do with interest rates, whethe they rise and fall, and more to do with the fed chair perspective on leadership and the values in their decision-making. values.a focus on we hope you will agree this conversation and many more like it to come in the future demonstrates the can be a beacon of international harmony and understanding proving humanity can surpass barriers of race, nationality, coulter and traditions that have divided the world. i would like to make an introduction to someone who i think embodies global leadership , james gorman, the chairman and ceo of morgan stanley. he is a 1987 alumnus of

international house. he will bring the bridge you have been waiting for to understand why we are hosting this event. jame[applause] james: thank you kelvin. thank you. it is a terrific honor to be invited to participate in what is an historic event. i was humbled to be asked to come to the stage as something of a warm-up act before you get the real deal. the four great shares of the federal reserve. i've been honored to work directly with three of the four i have tremendous admiration of their public service, intellectual capacity and careful stewardship of monetary policy in the financial system.

each has made a contribution to economic growth and stability of this great country into each we only dead of tremendous gratitude. calvin asked me to reflect on my experience as a student of international house. three decades ago, he asked me to reflect on how it helps develop the career i have been lucky to have here in the united states of america. i was accepted international house, lucky to be so and arrived here on the seventh of september, 1985. it was a harsh and humid day. like so many other foreign students who lived here i was tremendously relieved to have such a safe and welcoming community to move to in new york city. tradition ofegan a

writing a letter to my family in australia, something i continued for many years. my father passed away several months ago. before he did he gave me several shoeboxes filled with my letters. kept inbered, each their original envelopes. for those of you, this is a letter with an envelope. [applause] i have a child in berlin who has not in three months written the equivalent of one of these. very briefly i would touch on five extracts from those letters. of each capturing the essence of the wi-fi experience and was welcomed to. the first was arrival.

i wrote dear all. that may not feel personal but if you had nine siblings like i did you would not spell out their names every week. i arrived after 36 hours of flying. the former tenant of my room is still asleep in my bed. let's say the changeover was finely tuned. everything is a little on the margin. my room is small. i discovered i can see the empire state building if i lean out my window far enough. reflects new house york. dirty and security conscious. [laughter] [applause] life experiences. sunday was a big event in this room.

suit, tie and entertainment. the president spoke. he mentioned australian sitcom from the farthest place for what i thought was a minor accomplishment, we were roundly applauded. pno ander followed jazz, it was great fun. jesse jackson is coming this gandys is prime minister and gerald ford. where else in the world would you be so lucky as to have those people speak within one month? and then on friends, tonight i studied with a spaniard, a filipino, and a frenchman. it sounds like the beginning of a joke. [laughter] the yanks are incredible. loud, happy, friendly, buzzing with energy. they ask questions continuously. many needlessly.

[laughter] participation is graded. i am forced to do the same, when in rome put your hand up. money, i purchased a calculator today for $100. $200, my finances are writing a storm. letter, that was good practice for the financial crisis i would confront 25 years later. i was always short of money. i borrowed a student loan. 24% student loan. along came volcker. [laughter] [applause]

finally, international house was highly instrumental in pointing me toward a career in banking. i have been lucky to be assigned to a trustee. each trustee match to one student. mine is shelby davis, a legendary wall street banker. was a tremendous support of i house. he took me to lunch at a fancy club in new york and at the end he pointed at me and said you should pursue a career in finance. so i did. [laughter] thank you international house on behalf of myself and so many others who have benefited from your welcome, your warmth and your worldliness. pleasure tograte

introduce forensic aria -- fareed zakaria. he is at an extraordinarily decorated career from running foreign affairs at the tender age of 28 years old to hosting on cnn and writing to new york times bestsellers among his many accomplishments. he is universally recognized for the quality, depth and inside of commentary. he understands and appreciates the mission and he has a wonderful addition with his celebrated work we are about to hear from. [applause] fareed: thank you so much. that was a fantastic introduction.

i love the letter. i hope it will be published one day. gorman.ers of james let me say a few things before we have our guests join us. this is being recorded for my show. please turn your phones off and refrain from applauding until the end. in any case we don't want to that the fedense chairman has to parent -- pander to popular whims. it will interrupt the broadcast. i think that is all i have to say. this is such a special event. i'm going to -- henry kissinger need nose who hav introduction crave it the most. i think that is not true of the people i'm about to introduce.

i'm not going to give them much of an introduction other than to point out we have with us the four living chairman of the federal reserve, past and present. they comprise together 37 years of federal reserve history, which is one third of the history of the federal reserve. at some point perhaps somebody will make a musical out of all this in the style of "hamilton." i would like to ask the current chairman of the federal reserve, it janet yellen to come in. , herwe have ben bernanke predecessor. we have paul volcker, the legendary fed chad -- there chad -- fed chair. and from washington where he celebrated his 19th birthday, alan greenspan. welcome all.

thank you. [applause] madam chairman. i have to begin with you. i think everybody is going to be interested in the things you are going to say. let me ask you to start. you look at the economy carefully. bubble?n an economic is the economy as perilous as some people on the campaign trail are suggesting? ms. yellen: i was say the u.s. economy is made tremendous progress in recovering from the damage from the financial crisis. market is surely the

healing. jobs a average 225,000 month. unemployment stands at 5%. to ourcoming close assigned congressional goal of maximum employment. inflation, which my colleagues spent much of their time as chair bringing inflation down from unacceptably high levels for a number of years, it has been running under our 2% goal. we are focused on moving it up to 2%. we think it is partly transitory , the strong dollars responsible for pulling inflation below the 2% level we think is most

desirable. we are making progress as well. on a solideconomy course. not a bubble economy. attried carefully to look evidence of potential financial instability that might be brewing. some of the hallmarks that clearly overvalued asset prices, high leverage, and rapid credit growth. we don't see those imbalances. rates are low, it can encourage and reach for yield behavior, i went and described this as a bubble economy. we have relatively weak global -- but the u.s. economy has been doing well.

in spite of the fact we are suffering a drag from the global economy. one of those statistics you cited, the unemployment rate. many people say it is not 5%, it is higher. people who say it is in the 20's. do you think the unemployment rate is accurately reflecting the reality out there? fareed: there are different -- ms. yellen: there are different concepts of unemployment. the measure i cited is the most commonly used metric to judge the labor market. there are broader definitions. countsinition that discouraged workers and who-time, one full-time job can't find it, that is higher, closer to 9%.

broader definitions that count more people who may be underemployed are always higher. any metric you look at shows broad improvement in the labor market. part-time involuntary unemployment, employment is higher than one would expect given where the standard unemployment rate is. there i see some additional slacker improvement we could 5%e an suggest that the understates the state of the economy. overall whatever measures the you look at, many other different kinds of suggest a labor market by this vastly improved. fareed: for most ordinary

theye, they must wonder, have all this power over the economy. you have a mandate to provide, to keep inflation in check but to see people are employed. take extraordinary measures to help boost employment, health wage growth so people's wages rise. that is not a ceiling. take aggressive measures and overshoot the target by a little bit. you have undershot the target for several years now. people may wonder why not try to do something that would help ordinary working people? fareed: maximum -- ms. yellen: maximum

employment is the mandate congress gave to us. we take both parts of it seriously. had i would say very aggressive monetary policies yearshe last six or seven when you contemplate the fact december of 2008, we took the short term overnight interest rate essentially down to zero and then engaged in large-scale communications, for guidance policies to provide more stimulus with really done great deal to foster more rapid recovery. anticipategues unemployment will actually dip somewhat below levels now with

the policies we have in place and that they would see a sustainable in the long run. there is some overshooting in that sense. we are not shooting for a target that is in excess of 2%. extracting from energy prices dollar, a path like that service both of our goals, namely employment putting people back to work, progressing, chains, movingb at a faster pace back to 2%. we do not think to overshoot our objective but it is also the case 2% is our goal. it is not a ceiling. paths similar to what you described.

fareed: in december you raised rates. many people including larry felt it was a mistake. in retrospect, was it? i don'ti don'ms. yellen: regard it as a mistake. i feel the economy had made substantial improvement. toward our goal. [laughter] fareed: alan greenspan was registering agreement with that. if you can begin again. sit at two so, we criteria's to boost the fund rate.

it led to the december decision. we wanted to see substantial labor market.e we felt that has been satisfied. recognizing inflation is below are 2% objective, wanted to feel reasonably confident it would move up over the 2%. think those conditions were satisfied in december and justified taking a step. not in anylicy is preset course. although every three months my colleagues and i said out our individual projections of what we anticipate for the economy and also going along with that, what we think is a monetary policy path that would be appropriate.

that gives a suggestion of where people think the economy is going but we try to make very clear there is not a preset course of rate increases. we will watch carefully what is happening in the economy and adjust policies. .e took one step the u.s. economy has continued to progress in a satisfactory way. we have continued to see good job performance, some evidence of inflation moving up. that was our expectation when we raised rates in december. we thought the path of rate increases would be gradual. that remains our best guess and expectation. that the economy continues on the path it is on of recovering.

further rate increases will be justified but for a variety of the legacyrticularly weake financial crisis, global growth and the strong the level of rates, sometimes called the neutral rate, the level of short-term rates that would neither be particularly stimulating the economy or holding it back, that that level of neutral rates is quite low. accommodation's in the monetary policy that we have, but we think a gradual of rate increases would be appropriate depending on how our views of the economy evolved. i think we