the federal reserve is told you should stabilize employment. the bank of england from the british government. having central bankers appointed by elected officials created by elected officials i think and being answerable day-to-day. bernanke has to write a letter to the federal -- he has written quite a few explaining why he did this and why he will do that her next time. bernanke twice a year by statute and probably more often than that goes to congress and they ask him a lot of question and why aren't you doing what you are supposed to? there's a lot more accountability now then there was 30 or 40 years ago. it's still not a democracy and is troubling but i'm not sure there are a lot of better options. >> host: tell options. >> host: tell us ukel bit about how you did the reporting in the book. did you ask central bankers to explain what they did to you? >> guest: those that do talk you will notice they are are relatively few in the wreck or did direct quotations from people and attributions of this person that said that this happened. those

with ben bernanke in the federal reserve. i feel a lot of the books that were written in 2008-9 capture that very intense and remarkable crisis. the starting point and try to capture how the story went from there and the entire arc of this last several years. >> host: how long did take? >> guest: in some ways i have been building ideas census data coming to the federal reserve in 2007. i started on the fed be about one week after -- actually the first scene about the first direction of the buck. it's all my fault. august 9th 2007 is where i start which is the first day the european central bank intervened to prop up the european banking system. we got through that. i would not put the two together at the time, but from that point on i had been gathering ideas and france and trying to have seeped through what it all mantegna's of its series a thinking about a book in late 2010 and series reporting of the book started in two dozen 11. >> host: the cover shows, you looked at a number of central bankers, not only ben bernanke, bu

some of you covered the federal reserve and are familiar with how it sits monetary policy to the federal open market committee. you know that the influence c.p. pays close attention in what it says in the statements it issues after each meeting. this is supplemented by chairman bernanke's press conferences and providing detailed minutes of the meetings. getting this message out to the public depends on the work that you do in reporting and analyzing the statements and actions and explaining its roles and objectives. want to thank you for those contributions. let me also say while i'm particularly pleased to speak to you fape all of you are consumers and producers of communication. at first glance, the o.f.m.'s communication may not seem different from what you've heard other government agencies about what they say about their policies or what businesses say about their products. i hope to show how communication plays a distinct and special role in monetary policy. i would like to offer a comparison that may highlight that difference. suppose instead of monetary policy we were talking abo

federal reserve. the layman ratherspare as exhibit i and all the bad things just not something to be proud of. there's a number of times and they move slowly to understand by monetary policy was not having the effect they hoped. again and again, what chairman bert mackie showed was the willingness to look at the world, understand what is it working and why and he is everything in his power as a persuader, economist at tinker to try and get the u.s. economy to a better place. >> host: western to jean-claude touchÉ. how is he different from bernanke? >> guest: he is a different animal. he's a frenchman born in 1942. he's a lifelong public servant. he went to the french school for bureaucrats, worked in the french treasury come immediately to the french central bank and was a real up and comer and 1870s and 80s before becoming a central banker where he helped manage this transition to the euro. this has been about creating in spain a united europe has its own currency. that's his life project. he is in m

the federal reserve is fuelling this rally. do you think the economy gets better this year? >> i think we will get slow growth. we still have an unemployment problem. the federal reserve obviously said they may end up not doing as much stimulus by the end of the year. >> which was another headline this week. >> which is affecting gold prices and other things, if you will. as was mentioned everything in the world is relative, relative with regard to aopportunities, asset classes, the financial condition of the country compared to other sovereign nations, et cetera. >> let me ask you about this sovereign nation, america's long-term debt and deficit is something you have been working on for a long time. do you think president obama's budget proposal starts to address it? what is your take on what we heard this week from the president? >> i think the president's budget proposal is an attempt to put everything on the table and to bridge the house republican budget and the senate democratic budget. i don't think we will have a r.e.m. reconciliation of the budget this year. we will

to what extent is the federal reserve policy impacting this uncertainty?is all of the stimulus that they're putting into the economy helping or holding back growth? >> i think it is helping. it's tough to argue otherwise. when you look at the fact that the u.s. economy has expanded at an albeit modest pace, despite the elevated level of policy uncertainty. so i think the federal reserve should receive some credit for trying to estimate the economy. that said, i think importantly they are starting to point out that there are costs to their strategy. savers at home and in very low interest rate paying investments i think are clearly feeling the negative ramifications of some of the extraordinary stimulus of the federal reserve. >> one thing we hear a lot from all the ceos is because of all this uncertainty they're holding back on hiring. do you think that we will see any progress on the hiring front? >> i think we'll see modest progress but i still think we have to brace for some disappointments in economic data through the summer. the fiscal sequestration,

the federal reserve does not want the price of gold to go up. because it invalidates everything that they're doing. so they might be manipulating the market for that reason. but i think it is an excellent opportunity for people who understand the fundamentals to buy goal. >> so, rich, he likes gold, obviously. what about the jld chart? what's it look like? >> bill, i would say in this instance, the technicals are any a li alignment with peter's fundamental call. i think the risk jsh reward is rather compelling. and this could be a buying opportunity down here on the very low end of a well-defined 18-month trading range. keep in mind, we've now tested and held this key 150 level on that jld, the bench marc etf on three separate occasions after the past 18 months, with a very well-defined downside and upside of as much as 10%. we think this is where you want to be a buyer, with a very tight stop, maybe give this trade 1% to 2% on the downside. i think that's all you're going to need to be a winner. you want to be long of gold down here. >> peter,

by contrast, most of you probably know about the federal reserves successful inflation fighting in the early 1980s. the fomc raised the federal funds rate very high, causing a deep recession but also convincing the public that it was committed to low and stable inflation. anchoring inflation expectations at low levels help ensure that jumps in commodity prices or other supply shocks would not generate persistent inflation problems. this was eligible i the effect of an other escalation in oil price that start in 2005. unlike the 1970s, these price shocks did not result in a broad lasting increase in overall inflation. that's because the public believes the federal reserve would keep inflation in check. the fomc was forced to raise interest rates that soften the blow of higher fuel costs on households and businesses, and it wasn't necessary to do so because of the credibility the federal reserve had built since the 1980s your it's the public expectations have always been important, you might wonder how monetary policy had any effect prior to the transparency revolution. as it turns out,

the situation in 2008 and 2009 was like nothing the federal reserve had faced since the 1930's. in late 2008, the fomc cut the federal funds rate nearly to zero. ascertainly as low as it could go and where it has remained. with its traditional tool of expangary monetary policy luring the funds rate off the table, the fomc turned to newly invented policy options to try both to help stabilize the financial system and to lower the risk in economic activity. the public grew accustomed to the federal funds rate. with occasional, at this point limited guidance to a particular policy stance would probably last for a while. beyond the task of describing the new policies, extensive new communication was needed to justify these unconventional policy actions. and to connect them to the federal reserve inflation objectives. the best known of these unconventional policies is large-scale asset purchases, which is commonly known as quantitative easing. in late 2008 and continuing through today, the federal reserve has purchased longer term government debt securities, agency guarantee mortgage b

the situation in 2008 and 2009 was like nothing the federal reserve had faced since the 1930s. in late 2008, the fomc cut the federal funds rate nearly to zero, essential to as low as it could go where it has remained. with its traditional tool for expansionary monetary policy, namely lowering the federal funds rate, off the table, the fomc turned the unconventional and, in some cases, newly invented policy options to try both to help stabilize the financial system and to arrest the plunge in economic activity. the public had grown accustomed to monetary policy that focus on changes to the federal funds rate target, with occasional, and at this point pretty limited, guidance that a particular policy stands would probably last for a while. beyond the task of describing the new policies, extensive new communication was needed to justify these unconventional policy actions, and to convincingly connect them to the federal reserve's employment and inflation objectives. the best known of these unconventional policies is large-scale asset purchases, what's commonly known as quantitativ

kevin warsh former federal reserve governor. now distinguished visiting fellow at stanford university's hoover institution. wonderful to have you on the program. >> good to be here. >> let me ask you. it's interesting what steve just said. that the fed is being effective in terms of bringing unemployment down. is that what you think is happening right now? tell me how the fed's policies have worked from your standpoint. >> so i think it is very hard to believe ta central bank policies in the last couple of years have been moving the unemployment rate down. in fact, the state of our labor markets, the unemployment rate, is nothing to be proud of. the unemployment rate is falling because people are leaving the workforce. this isn't something to declare victory around. so i think the economy continues to be in mediocre shape. it's short on results and long on excuses. >> how would you grade the fed's policy? >> if policy is about good intentions i'd give them an a plus. if it's about achievement, about saying what you're going to d

it is what it is, is the federal reserve. but would you want to put money to work in stocks, knowing what we know? >> maria, when i was on one of the cnbc shows last week, when it looked like we were correcting, the question was put to me, what would you do in a pullback? and the answer is that we would probably be allocating money into the areas that we like, which has been the classic dividend growth, dividend coverage, dividend payout, the real income orientation part of the u.s. stock market. so on a pullback, the answer is yes. in other words, we just hit new highs. but right now, we're comfortable being between 45 and 50% exposed to equities and the parts of the market that we like. there are other parts of the capital structure, credit spreads are still look to be fair value right now. there are still other parts of the capital structure that look good to us. but in terms of chasing the market right now with the highs, you know, i don't think that this is the operative strategy. it would be actually to move in at a pul

. >> we all know this is largely being fueled by the federal reserve, right? because there are just no alternatives to stocks when people are looking for yield. so it doesn't matter that the economy is just so-so? >> well, you have balance sheets and corporations in great shape, and revenue growth so-so, and i agree with that. but in reality where else do you put your money? people are looking at a wave of activity coming into the marketplace over the next year or so as people look to grow their revenue in alternative sources with really cheap fngs. >> i want to ask you about real estate in a minute. david, how do you see things? the federal reserve fuelling this rally do. you think the economy gets better this year? >> we're going to get slow growth. we still have an unemployment problem. the federal reserve obviously said that they may end up not doing as much stimulus by the end of this year. >> which was another headline this week. >> which is a headline, which is affecting gold prices, among other things if you will. as you mentioned, everything in the wo

the biggest actor in all this is the federal reserve. the federal reserve is like an elephant sitting on the long end of the yield curve making it very difficult for people to make good money in fixed income, good money in cash and that is gradually pushing money towards the equity market. when i look at the stock market overall, i look at pe ratios, it looks normal valuations, fair value. relative to cash, relative to inflation and interest rates, i think the stock market still is cheap. we will get a corrections at some stage. don't know when it will start or end. >> put new money to work in stocks right now, then? >> i would. there is no alternative. you have to put money into equities as part of an overall long-term investment knowing there will be times this year and next you'll have a correction and can't time it. long-term, equity it's. >> what about lakshman, the fed? a lot of suggestions this week the federal reserve is going to start unwinding that $85 billion a month of bond buying. if we were to see the fed wind down this sti

the biggest actor in all of this is the federal reserve. the federal reserve is like an elephant sitting on the long end of the yield curve. and they're making it very difficult for people to make good money in fixed income, good money on cash. and that is gradually pushing money toward the equity market. so when i look at the stock market overall, i look at p/e ratios, earnings deals, price to book, it looks about normal valuations, fair value. but relative to cash, inflation, i think the stock market still is cheap. well will get a correct at some stage. i don't know when it's going to start or end. >> you would put new money to work in stocks right now? >> oh, yeah, i would. you know, it's what i would call the market, there is no alternative. i think you to put money into equities as part of an overall long-term investment public, knowing that there are going to be times during this year and the next few years when you're going to have a correction. you just can't time that but long-term, i would avoid equities. >> what about what laksh

a robust rally was underway, but stocks seemed to pull back after federal reserve chairman ben bernanke commented at a financial stabilty oversight meeting vulnerabilities remain in the market and regulators must be vigilant. in the end, major indicies made modest gains thursday, although, it's the 5th rally in a row for the nasdaq. gold rushed up $40, while oil had a spurt of $1.75. in earnings after hours, starbucks brewed up record revenue but missed on guidance. amazon topped expectations with revenue that increased 22%. the 15-year mortgage rate fell to a record low this week of 2.61%. the 30-year dropped to 3.41%. todd horwitz of averagejoeoptions.com joins us on this gdp friday. good morning to you, and what will the trade look like today? - good morning. i think a lot of eyes will be focused on this gdp number. yesterday we made a run at the highs and failed a little bit, sold off maybe half of our gains. ben bernanke said a few words, maybe we are vulnerable, so maybe that was part of the reason for the sell- off. maybe the markeisetng a little tired. but it still looks like th

a sell-off on wall street sttod, escalating tensions with north korea, hints that to the federal reserve could start winding down, as soon as the summer, creating a double whammy for stocks today. and don't forget earnings, for the first quarter, they begin coming out on monday and we've got the jobs numbers coming out on friday. take a look at how we're settling out on the street, with a triple-digit decline of 111 point points. s that nasdaq down 36 points. the dow pulling back from record highs, which were reached just yesterday. beware of black swans in this market. the always cautious jeff cox is with me, saying there are some potential under the radar events that could derail the rally. what could those be? we're going to join with him right now. also joining the conversation, nathan backrack from the financial group, and jeffrey sout from raymond james. good to see you guys. jeff cox, break it down for us and give us these under the radar events we need to be aware of? >> okay, maria. look up in the sky today, and you can see the black swans starting to circle a little bit. i want

. >>> manufacturing is one thing the federal reserve looks at very closely. today central bank policymakers began their two-day meeting. it's expected the fed will keep borrowing costs low, but a bigger question seems to be whether the fed will keep pumping more money into the economy through its bond-buying program. meanwhile, the parlor game has started in washington and on wall street over whether fed chief ben bernanke will stay for another term, and if not who might replace him. our next guest is the author of "the alchemist: three central bankers and a world on fire clotfire ." welcome. >> the economy is not growing very fast. the march jobs number was terrible. yet i don't see virtually anyone who thinks that the fed is likely to expand its bond buying program to stimulate the economy. you're in that camp. why not? >> yeah, they've been doing $85 billion in bond purchases every month, trying to pump money into the economy, keep mortgage rates low. and they're going to stay the course on that. if you remember just a few weeks ago after that last meeting

we'll look at the possibilities with a former federal reserve governor. >>> and why shouldn't free market conservative david coke buy the l.a. times? he'll save the papers, improve the newsroom and put in a better editorial policy. we'll debate. "the kudlow report" begins right now. >>> first up, marking the first 100 days of the second term, president obama met a much more combative white house press corps at a news conference today. he is tackling everything from the red line for syria, obamacare's rollout train wreck, and even whether his agenda is failing. chief washington correspondent, john harwood joins us with the details. good evening, john. >> good evening, larry. on your earlier question, he gave straight answers, but didn't much news. what the president was doing was trying to put himself in the narrative on a slow week in washington with congress out. and as presidents often do, especially in second term, he found himself defending against things that have proven more difficult than he thought, whether it's defining when to act against that red line crossing in syria, he defe

let me turn the attention to the federal reserve for a moment, larry. lots of talk the fed will ease up on the gas pedal this quarter. just this morning, we had some hawkish comments from william dudley, bill dudley, due to the recent jobs report. janet yellin, just in the last couple of moments, singing a similar tune. what's your take? when does the fed begin the end of stimulus? is this summer? >> i think it will be later than the market believes. i think it's going to be probably late this year or early next year. i think, obviously, we're focusing on the labor markets, but i think the key that we need to focus on is how banks are lending to small skmeeand mediu businesses. and the fact that bank assets are maturing very rapidly, they're going to have to reinvest that money and they're going to start, you know, they're very anxious to lend this money now and i think they're going to lend more aggressively to small and medium business. you even heard banks talking about, we're here, we're in business, we're ready to lend our money and i think this is

so if the federal reserve, if the federal reserve is boosting the market, if the voj is boosting moneym still making money. from an investment standpoint, you can talk about the implications down the road and it's debatable, because the fed, every time you say that, has answers to it, and same with the bank of japan, but if an investor is putting money in the market, am i not supposed to money money in the market because it's fed induced? it is what it is. >> you should definitely not fight the bank of japan or fed. and it's funny that people talk about qe as if that is the problem. qe is a reaction to a problem. no, it's not a great solution and it doesn't fix all of the underlying problems, but it's a response to a very big jr underlying problem, which is too much debt. what is the alternative? what happens to the u.s. economy if the fed stops printing now? >> you're facilitating that debt by continuing to print that money and to keep interest rates artificially low. paul volcker knew better than this. he would not monetize the debt in the way we are doing now. >> paul volcker faced

again, the federal reserve has had a 0% interest rate policy now in its fifth year. one beige book of a conversation that the federal reserve board governors had last month is not going to change that. what it is going to change is how long and how strong the fed is going to work to stimulate the economy. and the stock market made a new all-time high last week in the major market indices. and you wonder why, with relatively slow economy, with the rest of the world seemingly in that slow economy, the federal reserve continues to add lots of stimulus to the market, to ensure that new high, to try to put good money after bad and get the market going, to buy confidence and to build confidence. so i think last month you're going to see a lot of people talking about a moderating economy. i think that will continue going forward. >> thanks so much. have a great week. >> thank you. you, too. >>> it didn't take long for things to go from bad to worse in london. anti-thatcher protesters squaring off with police. >>> and a public view of jesse jackson jr. for the first time in

and the federal reserve can print all the money they he want. lot of difference, they have lost most of the fire power. >> i don't have to worry about the stock market. money is coming out of gold and commodities and going to stocks and ben can keep printing money because of the weak economy and we've got a loss of 50 points on the dow and i shouldn't worry about a huge selloff for stocks, correct? >> well, except that we're in an event-driven world. and you listed them at the owning of your show, korea, wherever you look around, there's a lot of events. so, in our shop, we have a cash reserve. we're not fully invested because of the nature of the events. now, the markets are complacent about the events and that's because of the zero interest rate liquidity. i don't expect there to be a shooting war in korea, there could be. i don't expect the bird flu pandemic, but we have an active virus and we don't understand how it's working and there are events to me that says a little bit of cash reserve for safety. stuart: david, thank you very much. and

san francisco federal reserve president john williams said the fed could start tapering its $85 billion month asset purchase program by this summer. wall street promptly lost two 1/4 trillion -- two and a quter billion dollars in market cap. moody's chief economist will be with us to assess all of that. the state of texas looking for the killer or killers of two of its prosecutors tonight. another prosecutor says enough. he will not be continuing his prosecution. we will have the latest for you on what is happening in the state of texas. a texas state government threatening to sue the federal government of the united nations arms treaty is ratified. we will be joined by texas attorney general greg abbott's and president obama ting his gun-control campaign on the road to colorado, a state that is already taking the assault on the second amendment into its own hands. foxes and politics other, democratic strategist. we begin tonight with president obama on the road tonight campaigning for and control and raising big money for his party. present abolished his anti-gun agenda before a sympat

well, it did open up a new debate on whether or not the federal reserve is going to start tapering down that $85 billion worth of bond purchases every month as early as this summer. president obama released his long-awaited budget this week. it totals $3.77 trillion with spending up 6% from 2013, and a projected deficit of $744 billion. it includes changes to the way entitlements such as social security benefits are calculated and has tax increases in it as well. earnings season is under way again. two key bank, jpmorgan chase and wells fargo beat analysts' expectations as alcoa some debate about quality of earnings. >>> every time you turn around, the market is hitting new highs. so how long does it last

>>> "squawk box" goes to the federal reserve.oard members who oversee the nation's banks and determine monetary policy for the united states. a cnbc exclusive interview with fed board governor daniel tarullo. >> an early read on friday's jobs report. adp private payrolls hit the tape at 8:15 eastern. we'll bring you the number and the reaction in the markets. >>> and time to improve your portfolio picks. >> i get all my money advice from pbs. >> where should i put my money? in tech stocks or the housing market? >> tech stocks, foxy moneybags. >> investment ideas from a member of the prestigious round table. the third hour of "squawk box" begins right now. ♪ >> welcome back to "squawk box" here on cnbc, first in business worldwide. i'm joe kernan along with becky quick. andrew -- andrew ross sorkin is on vacation, and as we said, mack has some comments and forecasts about the -- what do you have for the adp -- anyway. we are less than 15 minutes -- he hates that. we are less than 15 minutes away from the employment report that giv

liz: again, the president of the federal reserve. they will continue to pop up this market.herefore, buyer beware. if you avoid equities, you will get burned. equities is that one place where people can find real yield. >> as far as this probably goes, i am a little suspect of it. i will not get short and i have missed it. there has been some soft numbers would i do not like regional numbers. coming up this week, we have employment and manufacturing. those are big numbers. i want to see what happens. if that continues over the next few weeks or even months -- liz: i am going to interrupt. they are getting killed every time they try to short this market. look at today. look at this. all time highs the s&p 500. including names that are popular. >> absolutely. as i said, i am not getting short, i am just not going to add to positions. i am going to step back a little bit and see what evolves. liz: let's get back to energy. today is another big day for oil. >> from a technical standpoint, this was the perfect storm here. we are bride of -- it is a market that has no reason to be

>> no, i don't. >> let me ask you about the federal reserve. when would you expect the easing to beginning? >> the tapering? >> the tapering back of all the stimulus? >> i think it's further out there than people think? >> 2014? >> 2014, on balance. >> 2015? >> could even go that long. i doubt it would go to 2015. i don't see the fed beginning to take a move away from the zero interest. the earliest would be 2017 and probably as late as maybe 2019. i think we're here to stay at the zero bound for quite a while. and qe, the risk sit will be a lot longer and bigger than we think. >> now, you said you like technology in terms of one area, perhaps, that is not going to get hit as hard as some of the other areas in this 10% correction that you're lacking at. once we get a 10% correction, are you going to be a buyer on the dip? >> absolutely. >> absolutely. >> you know, i liken this to 2004. if you go back and look at the markets in 2004, you look at where fed policy was, the fed basically started to remove accommodation, but it did it very slowly an

why a slip up at the federal reserve is making traders suspicious. and....a company finds a new tv audience...from a very loyal crowd. first business starts now. you're watching first business: financial news, analysis, and today's investment ideas good morning.it's april 11th.i'm angela miles. in today's first look: the dow and s&p head higher into uncharted territories. a wild rally wedensday sent the dow up 129 points for a record close.the nasdaq moved up 55.while the s&p ended the day at a record 15-88.gold sold off $28 dollars oil gained 35 cents. in a busy after hours session last night...hewlett packard, intel and microsoft all fell on a report of a dramatic 14% decline in pc shipments last quarter.. yum brands dropped on weak sales in china,bed bath and beyond rallied on earnings that came in line with consensus. the kpmg insider trading scandal was caught on tape. that's right. fbi cameras were rolling as the deal went down in a starbucks in san fernando valley. the kpmg auditor involved in the deal was reportedly set up by a longtime frien

. -- criticizing the federal reserve and the office of the comptroller of the currency for creating a pre--- bureaucratic maze. this portion of her remarks is about 30 minutes. a report was issued that criticize the fed for fraud review of foreclosure and documents. the sutures and monitoring consulting firms. let me say that the fed undertook an independent foreclosure review in order to borrowers who -- had been financially injured by servicer airburst. we worked jointly with the comptroller of the currency. they took the lead in this effort area and they supervise most of the servicers that were involved. prime objective was to get help to borrowers as quickly as we possibly could. 4 turned out that over million borrowers at the servicers were likely affect did -- affected. to themremediation turned out to be an immensely complex, slow, and costly process. initially, we believe that the review was something that would the areas once we were in midst of it, it became clear that the review was serving to delay getting meaningful help to borrowers. that wea development were not happy

finally, ben bernanke speaks at the federal reserve's market conference in atlanta.ow, i would like this humble man to take a victory lap, or at least take in a braves game, but instead i think we'll hear him say he has more ideas to get this economy moving than he's already shown. don't give up on bernanke. he's not done with his mission. not until he reserves hiring numbers. i have faith he can do it. i know i'm probably the only one. i don't care. the weak employment report caused people to flood into housing stocks and a pork buy radiant and toll brothers off his speech. now, after the close -- boy, i can wait for this -- we hear from alcoa. i sure wish we didn't have to. they historically do not have a good first quarter. it makes a commodity that makes hobble. i am looking for a terrible number and that is too bad, because the company is doing well. it is well run. it just doesn't matter, because they make aluminum and that, frankly, is a curse. wish i could be more positive, they are giving it all she got, scottie, it just doesn't matter. i wish they made plas

credit suggests the start is in line with other central banks now such as the federal reserve. he stressed, however, that the bank of japan will be able to reach the 2% target in two years. we've seen where dollar/yen has been earlier on that. let's remind you where we stand right now with u.s. futures. so we have the close. there we go. the dow is currently 23 points above fair value. the fass dak is just 0.5 points below fair value. the s&p 500 is 2 1/2, 3 points above fair value. it follows a record close yesterday. the other thing that was worth pointing out in that rally yesterday, volumes were higher he, as well. the best volume since january the 2nd. >>> just a reminder, president obama is meeting with several bank ceos at the white house. they're in washington for a regular meeting of the financial services forum. this is a trade group that represents 19 of the biggest u.s. financial firms. the president and ceos are likely to discuss the u.s. bumt, job creation, immigration reform and cyber security. >>> and that's it for today's program. coming up next, of course, "sq

the federal reserve is storing the gold in a bank vault in new york city.me the lawmaker who is leading the charge, texas state representative . so when you want to do this? why do you want to take the gold from a perfectly safe place all the way new york to texas? >> is like any physical proper, it is safer, it reaches our goal and we should have it in the states. >> typically think of it as an insurance and investment. you are afraid that inflation will get out of control or maybe you are worried about the stability of the government. now, does any that fit your rationale? >> this actually has nothing to do with that. what it has to do with his there is financial instability all over the world. it is pulled and us to make sure that we do have stability here and that the economy is sound. when you look at it from an economic development perspective, it degrading a great thing to be able to go to businesses and others and say, texas is a great way. it is much better than any other state in new york. gerri: you believe that they will make their decision on t

both sides are playing a smoke and mirs game and the federal reserve is really the problem here. they present billions and billions of dollars intentionally and running the government bubble into the ground. europe is broke, america is broke and they are purposely doing all of this so that the american people will have no choice fwout accept one world currency and one government, this so-called one world orpped. guest: nonsense. if you are going to believe in conspiracy theerries like that don't quote to do it. we have to reduce the debt, the percentage of debt growing compared to the economy. but one world government, come on, be serious. guest: i agree. we're together. but if we chop off the end single currency one world government, the federal reserve print sog much money and you say that is a good explanation of why and you can get compable people on the other side why it's easy for congressmen like ryan. you have a conservative republican candidate come out in a two two party district and says our budget does something about that, our debt is getting too big. it's easy to th

i and then the four and a half years since the federal reserve launched the first quantitative easing program according to the c m b c survey q will continue well and its thousand and fourteen i spoke with peter schiff c.e.o. of euro pacific capital and about how long interest rates can remain low and facilitate current u.s. deficit spending given the president's announcement today about the possibility of chemical weapons in syria i first asked if spending either military or domestic must be severely severely curtailed. this is the guns and butter argument right now we think and how close and as long as we can borrow money at practically zero percent interest we can pretend that we can have both but eventually interest rates are going to rise and the governor's going to be forced to make some difficult choices there's going to have to be a lot of cutting going on and i think we're going to have to cut in both military and domestic because we're not going to all of florida a lot of these expenditures what do you think it's possible to reduce the debt and the deficit while the fat enab

. >>> coming up, is a big shakeup coming from the head of the federal reserve? >>> plus, some big changes at the local movie theater, focused on your wallet. but have you noticed? >>> and lighting up the night sky, the mystery at the music concert. what was that in the sky? >>> demand for new homes across the country, now, exceeding supply. in march, sales dropped 0.5% from february, according to the national association of realtors. sales are up more than 10% from last year. and those wanting to buy a home, up 25% because of a lack of building supplies. economists say a rise in home prices is expected. >>> is federal reserve chairman ben bernanke hinting that he's stepping down from his post? the 59-year-old says he will not attend an annual economic conference in august attended by economic leaders. saying, there's a scheduling conflict. but he's never missed it before. his second four-year term ends in january. >>> what happens in vegas stays in vegas. even overpriced cab fares. last year, cabbies overcharged customers 15 million bucks, going between the stri

stuart: into the federal reserve, onto their books. charles: where is it going right now?be federal government. that is where it is going. it is not on main street yet. i don't disagree with the premise, but in the baseball game he would be in the first inning. liz: i don't agree with stockman either. the assets got wiped out, but it is not a zero sum game. game. in a collapse somebody will be cherry picking. charles: he has combined them into this nuclear bomb that will go off and we will never recover from it. i wish we didn't say the failed bank but anybody who thinks it is out in america, they are crazy. we will not crumble overnight even though we have bad fiscal and monetary. stuart: we have 85-point up on the dow, 342 points away from 15,000 if my math is correct, which it may or may not be. he is the leader of a publicly traded company who is not afraid to speak his mind. a rare thing in corporate america today, isn't this? whole foods company chief executive joining us, libertarian capitalist defending capitalism. you will want to hear this, defending capitalism?

one of the gophers of the federal reserve bank came out and indicated over 25% of the jobs that we are creating are low-wage part-time jobs. so even those numbers are really dismayingly low, particularly in the cop text of a trillion dollar national deficit and a trillion dollar input of money through the federal reserves. so with the most aggressive sometime lie, both monetary and physical this is all we can do. we've got real problems in the economy, and they're not being cured. the policies that are followed have really not helped. >> >> 81,000 new jobs. but before that the experts had predicted 190,000. >> that's right. that's a very low number. we need 150,000 to 200,000 every month just to stay even, and close to 300,000 to be able to make a dent in the unemployment. >> was that low number of jobs created due to sequestration? >> no, it was not due to sequestration. it was due to the fact that we have a very weak economy that is not being cured. >> why did retail jobs fall 51,000? >> because retailing is falling off the edge of the cliff. that's the real problem. >> not because o

. >> i think it is certainly a concern given the yield, but the federal reserve by keeping short rates low and by buying a lot of longer term treasurys that they want yields to remain low and they're acting as very powerful depression on the market and really i don't see any sign says that they'll be moving off that policy unless we get a pickup in inflation and i would defy anybody to tell me what sector out in the economy has pricing power right at the moment. >> given that, then, if you want to go into the fixed income market, where do you see continued opportunity given the rates that will be on the low side for so much longer? >> sure. >> that said, the rates could move up and i would stick to short and intermediate maturities in terms of particular sectors that we like right now are banks that are investment grade that are high income tax bracket investor and unfortunately, many of us are with the changes in the tax rules. the rate of munis look quite attractive and finally, this is more for institutional type investors. aaa-rated commercial securities and has a good combination