technologies and we are hopeful they will produce good results. >> watch the committee caters tonight at 8:00 eastern on c-span 2 -- the communicators tonight at 8:00 p.m. eastern on c-span two. >> c-span is your source for campaign 2018 and tonight we go to the utah congressional district between a republican incumbent neil love and democratic candidate ben mcadams. live at 8:00 p.m. eastern. debate in the race to replace outgoing arizona senator jeff flake in the senate. coming up this afternoon, a debate in virginia seventh district, republican dave brat takes on his democratic challenger live at 6:30 p.m. eastern. until then, part of washington journal from this morning. table, the federal

reserve washington was one from the new york times and we want to talk about the big drop in stock markets last week in this country, they came back a little bit on friday the last week was not a good week to what were the reasons? >> it is hard to say the reasons but there is a couple of big things. -- interest rates are rising and people moving into bonds, the evolution of a strong economy. this is overdue and the federal reserve is raising interest rates which have made bonds a more attractive investment. and people are concerned about the high vibrations of technology companies. there has been optimism about the future. concernedfactor is about the health of the global economy, not much the domestic

economy. host: where will things be headed in the next weeks and months? what should people be thinking about? up fore rates are going homeowners and put this in perspective. guest: the federal reserve have made clear it will keep raising rates. we are in an environment of higher interest rates. if you're a borrower, you will pay more on your monthly payment for a new car or house. that will continue moving up. what will happen in the stock market is much harder to predict that the best advice if you are an investor, have a long-term strategy and do not pay too much a digit to what is happening on any given day. host: what about the condition of the u.s. economy? guest: seems to be in good shape as the head of the federal reserve has called especially

bright moment for the u.s. economy. things seem to be going forward steadily and smoothly. and one of the longest economic expansions and american history with not a lot of signs of trouble on the horizon and growth has been stronger in the past, waiting for more upward movement on wages. things are going well. host: talking about the stock market, federal reserve, economy. we want to get your participation. if you live in an eastern or central time zone, the number is 202-748-8000. if you live in the western part 1. the country, 202-748-800 a headline to a piece you wrote after the president attacked the fed as the stock market fell and the midterms limned. loomed.d -- president trump did an interview with fox and friends.

let's look at we will talk. >> the federal reserve is getting too cute. democrats, you look at what they would do, they would knock it down democrats, you lot what -- down 50%, when i took over this economy, it was 4.2%, it was ready to crash, the worst, if you look from depression, from the great depression, the worst recovery. explain what the role of the federal reserve is any broader economy? guest: federal reserve is

controlling the rate of growth in the economy. if things are going too fast, it can slow things down. things are going to slowly, it can speed things up. keeping unemployment at a low level. basically the regulator on the economy. guest: the president -- host: what is the president trying to say with the fed is being ridiculous and what -- guest: he has been extremely critical of the fed. not coherent about what he is offering those criticisms. he is upset that the federal reserve is raising interest rates, arguing they do not need to be restricting economic growth at the moment. that it is a mistake for them to try to step on the brake. that the economy is not strong enough for the fed to be doing that. he has mentioned the federal deficit.

interesting because the president has called the federal debt to increase bypassing large tax cuts and simultaneously increasing federal spending, now saying if interest rates go up, we will be spending more money on interest payments and i do not want to spend more money on interest payments, no one wants to spit then -- spend more money on interest payments. host: does the president control the fed? guest: he appoints the board of governors come indirectly he has incredible" over the fed but once he has done that, they have -- he cant authority stand on the sidelines and yell at them but they have autonomy. host: what else has the fed chairman telegraphed in terms of other rate hikes and actions? guest: he has made clear rate hikes are having -- happening. they are predicting there will be more rate increases next at a rates are still

low-level by historical standards and the fed is to provide stimulus to the economy, lightly tapping on the accelerator. they think the economy is strong enough to get by on its own and every indication is they will keep raising rates. host: timothy in new york. good morning, timothy. caller: i have a question for the gentleman. c-span.ne complaint for the last time i called in, i suggested simply that instead of having democrats and republican lines, going regional. host: which we are doing. caller: you are? much when youo have the democrat and republican. i did that and i also suggested you have a discussion on israel.

as soon as i said that i was cut off by pedro. from then on, you will not let me call. i called from a new york phone but i used to call from north carolina, but it has been six months. that is disrespectful. host: thank you for calling in and you will let -- we will let you get in your question or comment. thank you for the idea of the subject matter for a future segment. what would you like to ask our guest? caller: i would like to ask him, as far as the federal reserve, first of all, i want to say that the money we have been spending in the tax-cut and everything else, has taken this government down. donald trump does not want to raise interest rates so the

country can make back the money it has been giving away, because he wants his economy to a good. alleems like they can take of this money and give tax cuts to the rich, $2 trillion, and cannot pay for health care. they do not need the money, they were making record profits. i would say to the democrats wake up and make the point that matter. stop being like the republicans. is a shame that people are getting away with all this stuff. donald trump. nobody is going back. the last thing i want to say, sir, i do not understand, i know this is off question but nobody has brought this up -- when brett kavanaugh was confirmed, theyid democrats say that would not bring it out at first, why didn't they bring it out at

first? if they would have released his records, he would have never been confirmed and they would never have had to brought this up. they ran away from it and act like they did not know who leaked it which is stupid. guest: the economic applications of the tax-cut the caller raised , the tax cuts are providing a short-term boost to the economy, part of the recent growth has been stronger. that was expected. in the longer term, we will see, republicans say they think it will turn into longer-term economic growth and democrats warn it is part of an economic problem we will have to face going forward. host: short-term mentioning the tax cuts, do you think their affect has run its course or is there more gain to be had come in the market or corporations? guest: predicted effects of

handing out money to people are primarily in the current year and prime and -- and part next year, republican say if you cut taxes, you will get a longer term boost to the economy but we have not seen that yet. that will be a question for the coming year. host: before congress went out for the elections, we saw a push on the republican side in the house at least to make the tax cuts for a minute. is that something -- permanent. guest: the elections will be haveive, republicans will an opportunity to move ahead with their plans for the tax-cut if they are the majority but if the host: -- bob in livonia, michigan. caller: i have one question and one comment. ron paul four years has been trying to find out who owns the federal reserve.

all money comes into circulation as borrowed. when you borrow money, it comes with interest. it is mathematically impossible to pay off the debt because of that. i will take your answer. guest: the federal reserve is a complicated and the board of governors is part of the federal government come in washington. -- federal government, in washington. our system is comprised of 12 regional banks which are technically owned by the commercial banks in each region of the country and the commercial banks hold shares in the fed. they do not have operational jointls but it is a public-private entity. i am not sure about the statements in the second part, it is possible to replay the national debt although we are not in danger of doing it soon.

host: thousand oaks, california, good morning, sam. caller: good morning and thank you for taking my call. i have a full us -- question on the need for the fed. i have no interest in politics or politicians, but i do question why the fed exists. the fed interest rates, when market forces can accomplish the same outcome, much more effectively and efficiently. if i want to lend to my neighbor and i trust him, i can set an interest rate of 1% and if i want to sell or lend to the other neighbor and i do not trust him, i can set it at 2%, why do you need the that to interfere in market forces? guest: when ronald reagan met with paul volcker, he asked him that question in the 1980's, the

answer is not to control interest rates primarily but the fed was created to prevent and respond to financial crisis is. the early 20 century, the american economy was played i repeated financial crisis is as markets would be stabilized and spin out of control and millions of people would suffer as a consequence. the fed was created to provide liquidity to the banking system during times when banks stop being able to help themselves or each other and that is why we have a federal reserve. we saw during the 2008 crisis, the federal reserve stepped forward to stabilize the economy. secondarily, over time, the fed was an economic regulator and most people think we do need some type of government policy to determine the level of interest rates and the amount of stimulus being provided to the economy. there have been different proposals about how to do that.

if you do not have a central bank during the financial crisis, history tells us things are more painful. sellson twitter, someone the regular spenders, wants the nonexistence of the fed. is the fed something we are hearing on the campaign trail from the president? diedr: -- guest: it has down after 11, after the financial crisis, the fed was some people upset at the role it played and we saw proposals from both political parties to change the mission of the fed and limit its role in the economy. when things are going well in the economy, we hear less about the federal reserve. it is unusual for the president to be attacking the fed during the time of such a long economic growth -- prolonged economic growth and we have not heard --

republican candidates picking up on the theme. host: are there fed defenders? maybe there are, quiet majority but a lot of people who think the institution does what it should and not high on the list of things that need to be fixed in washington. host: another tweet come up when did the expansion of the economy start? when did the expansion of the economy start? caller: -- guest: the economy has a growing since the end of the recession since 2009. host: expect growth? guest: for the as -- for the foreseeable future. borrowing levels are not particularly high. this has been a slow and steady recovery. not a lot of overheating and indications are growth can continue for some time. that sometimes get caught by something unexpected.