by the way, he helped found the federal reserve. i had no idea it was going to be like the universe and keep expanding as it went along all the way from his hometown in illinois to washington, chicago, new york, europe, and japan. i work in my home office and look out on my backyard where some days i have 20 peacocks, which were imported to palos verdes to run wild by frank vanderlip. i never thought i would be standing here on this rainy day directly across the street from frank vanderlip's bank, which is standing in front of right here. that was in probably about 1930 when that picture was taken. because we are across from his bank, i would like for us to forget this modern world for a minute or two and forget all of the traffic outside and go back to this time 100 years ago. here we are on wall street in 1907. electricity is new. telephones, radio, they are all brand-new inventions. there are no televisions. no computers. nothing like an atm has been imagined. at the end of everyday banking, each bank would gather together all of

the federal reserve raises interest rates i don't think that the federal reserve meeting was surprising in anything that the fed did they upgraded the outlook for employment and that is they lower the target for unemployment they tweaked up the forecast for inflation and they had to recognize that q one growth in the u.s. was just miserable and want to find out later this week when we get this final revision to first quarter g.d.p. but it turns out that because consumers in the u.s. spent less money on health care g.d.p. may have contracted as much as two percent in an annualized rate so the fed had to recognize that and they lowered their forecasts for this year and i think that in general that's what more or less the market was expecting now where do you think the u.s. economy is headed and what impact will this have on inflation expectations policy and exchange rates. and sure so where is the u.s. economy headed i think that after the. horrible first quarter i think we're looking at something closer to three percent this quarter q two as well as in q three i think the fiscal drag has

i would say that the takeaway message from the f o m c meeting was that the federal reserve is not the bank of england that is preferred binoculars to federal reserve he put the fed on a path and that path is a high bar exiting that path and the federal reserve is still out that path and that path is to first taper at a measured pace which means ten billion dollars in one meeting. most likely and then sometime after that and that's where they see the nuance comes in a considerable period after the fed gets started tapering raise interest rates we have a first rate hike. price did in our forecasts for q three of next year that is probably about this time next year next over in the us the federal reserve raises interest rates i don't think that the federal reserve meeting was surprising in anything that the fed did they upgraded the outlook for employment and that is they lower the target for unemployment they tweaked up the forecast for inflation and they had to recognize that q one growth in the u.s. was just miserable and want to find that out later this week when we get that

when you had rand paul guam the language of the federal reserve to require an audit from the federal reserve. >> on the open market. on the voting process by which the open market sets the rates. >> had that amendment been adopted, i don't think barney and knight could've gone forward with the bill. -- and i could've gone forward with a bill. oftroying the independence the federal reserve could've easily brought the whole bill down. as a result, they came very close. the amendment was about to be offered by bernie sanders who joined with the most conservative members of the senate. they join together on that proposal. bernie sanders, i talk to him a great lengths and he decided to i and change that. as a result, the amendment was not offered. we dropped the house provision. had that exact language would've have been adopted, and you cannot get rid of it and that would've brought the whole bill down. that is an indication of what we're looking at today in terms of how congress looks at the financial services sector. when people start talking about repealing all of this and going back t

you're that what they should be focused on is the idea the federal reserve has. trying to revert back to tools that allow them some degree of control over short term rates in using short term rates is their policy primary tool rather than the the. quantitative easing tools that we've become used to over the last couple of years when we've had interest rates near zero. that was professor tim daly of the university of oregon time now for today's big deal. big deal time with the wonderful mr edward harrison now today we're discussing government intrusion into our digital privacy and how government overreach threatens our fundamental civil rights very concerning eldar levison the founder of log a bit an encrypted email service published an article in the guardian describing how the federal government forced levison to install a surveillance device on his email servers and surrender his company's private encroaching keys this of course undermines the very service that lava bit wanted to offer which was designed to protect users privacy and when response leveson shut d

federal reserve has enormous power to influence the market through its control of the federal funds rate and it has also proved able to use unorthodox tools like quantitative easing to amplify it but what if the federal reserve in its belief in monetary policy is consistently wrong spoke with an economist and executive vice president of poison investment management company who is skeptical about the direction of the u.s. economy and the effectiveness of the federal reserve's policies because nominal g.d.p. growth is slowing because real g.d.p. growth and inflation are slowing at the same time. if there is an interconnection between the slowing of one and the slowing of the other given the high levels of debt that still exist in our economy take a look. i absolutely do i think that. the reason basically won terry policies and the tenant is that we've acquired too much and we've kept acquiring too much of the wrong type of dead at that's not going to generate an income stream to repay principal and interest and in that environment the velocity of money is going to decline and it's been dec

i promised you a humdinger of a federal reserve conversation, i told you the federal reserve is an exciting topic, you're thinking, rob, you're talking balance sheets, balance sheets don't inspire me at all. what about interest rates? do you remember the interest rates of the 1970's? do you remember when getting a 1% mortgage was a pretty good deal? i do. folks don't realize that today. if you were born after the 1970's, you've been in a time of relatively moderate interest rates. what i have here are 10-year interest rates. the u.s. treasury 10-year rates. i go back to about 1960 and we track these rates out. back in the 1960's, they were about 5%, 4%, go right on up there into the end of the carter years, beginning of the reagan years, 6% on a 10-year treasury coming out of the federal government, mr. speaker. and then after those carter-reagan year, you begin to see the numbers decline. we go all the way out now, we're looking at yields under 2%. mr. speaker, this is interest rates on money the frft borrows. again, i hate to dwell too much on my high school economics class lessons but yo

there's going to be upward pressure on inflation so i don't have a specific date on when the federal reserve should raise interest rates i do know that they should really hold off until they see some some real some real questions about. you know the pace of inflation i just think we're a long way from that. now are you concerned that the low rate environment provide tinder for a build up of leverage interests as janet yellen once put it right and i do think there is some concern about that how well for you to have to match that about the concern that if you didn't have a low rate environment we'd have more people unemployed for example and what would be the consequences of that so of course we're always carrying something occurring on something or a balancing act we think about how worried should low how low rates should be relative to. financial stability issues. now i would say that the balance of risks is really about you know making sure that we are able to you know fully engage the labor force. rather than the financial stability concerns at this at this time. tim in the latest stuff fe

water back to the big picture i'm tom hartman coming up in this half hour the federal reserve is supposed to work for all americans but over the years it's become pretty apparent that the fed only cares about wall street and its big banks so what can we do to make the fed care about we the people and not just the wealthy elite and this weekend extremists in pakistan stormed an airport in karachi killing thirteen people. in america correctly labeled with a terrorist attack meanwhile back here in the u.s. right wing extremists shot and killed two las vegas police officers while screaming about the revolution the media has called the crazy shooters it's now time for our media to admit that right wing extremism is very real and very deadly and terrorism . and in the best of the rest of the news when congress finally approves him as vice chair of the federal reserve board of governors stanley fischer will be joining a very elite club that fisher is already a member of the board of governors but as the feds vice chair he will be second in command of janet yellen who took over as federal reserve

economy and the effectiveness of the federal reserve's policies because nominal g.d.p. growth is slowing and because real g.d.p. growth and inflation are slowing at the at the same time aaron asked lacey if there's an interconnection between the slowing of one and the slowing of the other given the high levels of debt that still exist in our economy take a look. i absolutely do i think that. the reason basically one terry policy is important is that we've acquired too much and we've kept acquire too much of the wrong type of debt that that's not going to generate an income stream to repay principal and interest and in that environment the loss of that money decline is going to clot and it's been declining regularly since nineteen ninety seven and about a three percent annual rate. m. to growth is six percent that's essentially where it was before the financial crisis two thousand and seven two thousand and eight so money growth is six the last days declining and three that suggests that fundamentally year trend rate of growth in nominal g.d.p. should be only three perce

you mentioned the two federal reserve's in missouri. hadpresident of one of them been a fairly vigorous the center -- the center -- the dissenter. when you were many things, how about a law that once they cannot have to federal law -- federal reserve presidencies? >> like senators. when i ran for senate, jim buckley decided to running connecticut having served in the senate for new york. the constitution is rather clear on that point that each state gets to senators not each senator gets two states. [laughter] >> i am going to take you back a bit before i do, have to say on behalf of the occ that we regulate over 1500 community banks. >> barney was terrific on this. the community banks were tremendously constructive and helpful in putting this bill together. at a not been for the banks working with us, this bill would not have been passed. >> we can have a dual banking system, you have dual regulators to reflect the state federal. >> even at the federal level. timet to take you back in to september 18, 2008. it was the day you both were

is asked about the status of the federal reserve program. janet yellen spoke to reporters. >>> good afternoon. the committee concluded its june meeting earlier today. as was indicated in our policy statement, we will make -- maintained its forward guidance regarding the rate target, and -- remains appropriate. today's policy actions reflect the committee's assessment that the country is continuing to make progress toward maximum employment and price stability. the unemployment rate is four-tenths lower than at the time of our march 6th meeting. and -- those working part-time but preferring full-time work has fallen by a similar amount. unemployment remains elevated, and underutilization in the labor market continues. and this appears to have resulted mainly from transitory factors. spending by domestic households and businesses continued to expand in the first quarter. and the limited set -- in the second quarter have picked up. the committee thus believes that economic activity is rebounding and will continue to expand at a moderate pace th

when i first came to the federal reserve 37 years ago, i was struck by the passion of my colleagues for the mission of the fed. and these many years later, each day at work, i see the importance of that passion to carrying out the fed's duties

does this suggest the federal reserve is behind the curve on inflation? olerance is therefore federaln asian at the reserve? if it is above the two percent target tom how is it not blowing through the target the same way you blew through the 6.5% target in that it becomes a soft target? thanks. i thank you for the question. so, i think recent readings on, , haveample, the cpi index been on the high side. i think the data we are seeing is noisy. it is important to remember, broadly's aching, inflation is evolving in line with the committee's is x the patient's. the committee expected a gradual return in inflation toward his two percent objective. i think the recent evidence we have been abstracting from the suggests we are moving gradually back over time to our objective. i see things roughly in line with where we at effective inflation to be. i think you look at the s&p projections submitted this time, you see very little change in inflation projections of the committee. tolerance? class the committee emphasized that we have a two percent objective as a lo

of the federal reserve system. mr. reid: a cloture motion i ask to be reported, madam president. the presiding officer: the clerk will report. cloture motion cloture motion. we the undersigned senators in accordance with the provisions of rule 22 of the standing rules of the senate hereby move to bring to a close debate on the nomination of jerome h. powell of maryland to be a member of the board of governors of the federal reserve system signed by 17 senators as follows. mr. reid: i ask the reading of the names not be necessary. the presiding officer: without objection. mr. reid: i ask consent the mandatory quorum under rule 22 be waived. the presiding officer: without objection. mr. reid: i move to proceed to legislative session. the presiding officer: the question is on the motion. all those in favor say aye. all those opposed, no. the ayes appear to have it. the ayes do have it. the motion is agreed to. mr. reid: i plouffe to proceed to calendar 767. we are in legislative session session is that right? the pres

the federal reserve is trying to lift all boats. we want a stronger market, to see wage gains and jobs and if the fed is raising rates, that's a signal they think this is occurring. it's not a question who winds or loses, how do we all benefit from stronger economic growth? >> gus, how do we fix this income inequality situation? >> how much time do you have? that's a huge issue and obviously, we have the answers i wouldn't be here today. you know, there are a whole bunch of issues that need to be resolved but the question is, workers are more productive. we're absolutely right about that. the question is how do workers benefit from the productivity gains? right now the gains are going primarily to holders of capital but we want to have an economy where pros par pros party is sh >> are you suggesting there isn't an income disparity in the united states right now? >> oh, there is an income disparity. the question is where did it come from? my belief is that during times of tech thnology advance. michael jordan made more inflation adju

the federal reserve upgraded the u.s. economy in the statement today saying it was rebounding from the severe winter weather swoon. at the same time because of the economy's contraction, in the first quarter, much stronger than expected, the fed had to downgrade its forecast for the full year, by 7/10ths of a percentage point to 2.2%. still janet yellen said she saw gathering strength in the economy. >> i think there are many good reasons why we should see a period of sustained growth in excess of the economy's potential swrech potential. we have a highly accommodative policy, the fiscal drag, we have using credit conditions. we have households who are becoming more comfortable with their debt levels. we have raising home prices and rising equity prices and an improving global economy. at least in high estimation, too. i think all of those things ought to be working to produce above train growth and for a number of years which admittedly growth has come in at a disappointing level, we've still seen the labor market broadl

does this suggest the federal reserve is behind the curve on inflation?ce is there for higher inflation at the federal reserve and if it is above the 2% target, how is that blowing through a target the same way you blew through the 6.5% unemployment target in the day becomes soft targets? thanks. >> thanks for the question. i think recent readings, the cpi index have been on the high side but i think the data we're seeing is noisy. it is important to remember broadly speaking, it is evolving in line with committees expectations. the committee as expected a gradual return in inflation for its 2% objective and i think the recent evidence we have seen abstracting from the noise suggests we are moving back gradually over time to our 2% objective and i see things roughly in line with where we expected inflation to be. if you look at the projections that were submitted this time you receive very little change in inflation projections of the committee. >> what about the tolerance of hierarchy? >> the committee has emphasized we had a 2% objective for as a longer

week to protest three major issues there against the mainstream media us nato wars and the us federal reserve and they're meeting there in berlin out of all places and it all came through organically it's not a left movement it's not a right movement but what you see from the establishment which is afraid of this new up and coming movement is that they're slandering them they're saying that they're racist they're saying that they're right wingers when they're not you know the organizer of this protest you know recently how does the you know car firebombed in another city in germany so you're seeing their oppressive kind of force but you're also seeing this huge mass movement that no one else is talking about because i didn't even hear about it until i actually went to this event actually went to berlin and met the people and talked to the organizers and talked to the people pushing everything so it was fascinating out of all places in berlin germany to have thousands of people every week there protesting the federal reserve the mainstream media and you know foreign wars of aggression by nato

which would come from what the federal reserve is doing which led to naziism of the thirty was exactly what why maher gemini is was the result of money printing from their central banker and they say i guess they recognize that janet yellen is doing the exact same thing today that they did back and why mark that led to hyperinflation that led to naziism is that level of clarity endure in berlin you know it is there definitely is there was very intelligent people there that just broke every everything down through you know we'll draw wilson to nine hundred thirteen and everyone knew about you know your show and we are changing all the alternative media there's well so it was it was it was great seeing this knowledge and there were different mixes of people it wasn't it was mainly people who never ever went to a protest before it was people who weren't ever politically active they weren't from the left wing of the right wing and it was a wide over a of different people would you know also different issues coming together so it's like a weird mix between occupy and the tea party and i thi

my federal reserve colleagues and i experienced this as we struggled to address a financial and economic crisis that threatened the global economy. we brainstormed and designed a host of programs to unclog the plumbing of the financial system and to keep credit flowing. not everything worked but we kept at it, and we remained focused on the task at hand. i learned the lesson during this period that one's response to the inevitable setbacks matters as much as the balance of victories and defeats. there is an unfortunate myth that success is mainly determined by something called "ability." but research indicates that our best measures of these qualities are unreliable predictors of performance in academics or employment. psychologist angela lee duckworth says that what really matters is a quality she calls "grit" -- an abiding commitment to work hard toward long-range goals and to persevere through the setbacks that come along the way. one aspect of grit that i think is particularly important is the willingness to take a stand when circumstances demand it. such circumstances may not be all

appropriate to do so and to control the left of short-term interest rates thereafter, even though the federal reserverge balance sheet for some time. and the associated implications for the degree of control over short-term interest rates, the functioning of the federal funds market. transacts. the committee is constructively working through the many issues related to normalization, and will continue its discussions with the expectation of providing additional details later this year. thank you. i'll be happy to take your questions. >> reporter: is there any -- look likely to compete your 2016 consensus forecast next week? does this suggest that the federal reserve is behind the curve on inflation? and what tolerance is there the same was you blew through the 6.5% target, in that they become these soft targets. thanks. >> well, thanks for the question. i think recent reading having on the high side, but i think the data we're seeing is noisy i think it's important to remember that broadly speaking inflation is -- in line with the committee's expectations. toward its 2% objective, and i think the rece

the federal reserve seems to think it is time to lessen its bond buying program. let's see how the markets have been responding to the news on that forecast from the federal reserve. we saw earlier the markets turn from negative into positive territory. that development is continuing this hour. about 14 minutes left to go on trading on wall street. the dow jones industrial average is up by 1/4 of 1%. seeing a similar figure for the nasdaq. the s&p 500 is up by even more than that, almost 1/2 of 1%. let's talk you through the european close earlier. the european markets closed in the vicinity of a flat line. the london ftse is somewhat higher. the same picture for the frankfurt dax. 40 was below the line. we need to add that the european markets closed before we actually got the statement. that slashed growth. let's talk you through a few other stories we are watching. iraqi oil supplies are in the spotlight. sunni rebels are facing off with iraqi forces for control of the refinery. around -- theor site accounts for around half of iraq's need. bp and others are in

it was done by the new york federal reserve. dudley has already come out and said that the markets and the fed are in agreement that a rate hike might take place somewhere around the middle of next year. this report today about the moderate expansion of the laysmy in all 12 districts the groundwork for rate hikes coming. maybe sooner than we think. looks very solid. data before may 23 -- we know since may 23, 16.7 million. the best level we have seen since the recession ended. things look pretty good. also noted an expansion in manufacturing activity across the nation. especially strong showing on the east coast. and in st. louis and kansas city. his production coming back to the eid states from overseas? >> is tricky. -- it is tricky. we have gdp component data that suggested tdp might be more like 3% in the second quarter. just aial production month ago in march made an all-time record high. this report is consistent with that. it did come off a little in april from march and we get made data. may data. >> the figures for the

speaker, the federal reserve act authorization.olks often wonder where the federal reserve comes from. the truth is it comes from the federal reserve act. i point to section 2-a, monetary policy objectives. the board of governors of federal serve in the open market committee shall maintain long run growth of the monetary and credit agree gates commensurate with the economy's long run potential to increase production, so as to promote effectively the goals of maximum employment, stable prices, and moderate long-term interest rates. i know there's some high school economic students out there who are thinking, wait a minute, can you really promote stable prices, maximum employment, and long-term interest rates with the same set of policies? i share that high school economics concern about whether or not those three goals can be pursued collectively, but this is the mandate the federal reserve has, and this is why the federal reserve is involved in what they are involved in. mr. speaker, what i have here is the federal reserve balance

the federal reserve chair has just wrapped up her second news conference. among the highlights, the fed expects the u.s. economy to pick up steam as the year goes on. interest rates will remain low until at least next year, and in the fed's words, we will see a highly accommodative stance. the fed has slashed the product for gdp thing it will slow down this year from 2.9%. monday we had christine the guard saying we expect 2%. all of this news did not stop the fed from cutting billions from the monthly bond purchases. it will now total $35 billion per month. all this news opening the gates and the bulls charged out. look on your screen, to changed just minutes after the announcement on this intraday chart on the s&p 500. focus at 2:00 p.m. eastern, as the fed statement came out. 1951 is the number to watch for a new s&p record. we are just slightly above it right now. checking treasuries right now looking at the yield on the 10-year note and everything else we have, dow jones industrials up 63 points. there is the yield, down four basis points going back to