the fed implemented inflation targeting in 2012 under then chairman ben bernanke, leading policy expert. but powell began to see an inherent flaw. the fed will always see inflation and never hit the target the fed was always chasing its tail powell and the fed are hoping to try to convince the public that inflation can rise to the target and above it in order to average 2% over time the other big change announced yesterday also reflects powell's observation of how economic theory can fall short in action. the fed kept waiting for low unemployment to spark inflation, but the rate kept falling, inflation kept not appearing, and yet powell could see tremendous social gains from low unemployment in this year's virtual jackson hole speech, he said the strong labor market that prevailed before the pandemic was generating employment opportunities for many americans who in the past have not found jobs readily available, especially low-income americans. now the fed is going to let the economy run with low unemployment and worry about inflation when and if it really shows up all of that is part o

, making -- perry has been critical of ben bernanke, making some of the same points that william jennings bryan was making a century ago. >> the legacy of that debate was the federal reserve system. we got off the gold standard eventually in the early 1930's. what people on that side wanted was a more flexible money supply. in hard times, interest rates would go down and more money would be in circulation. in prosperous times, they would go up. it is kind of like the fed today. at the time, it was seen as a great reform. of course, when we get in economic trouble like we're now, people look for a panacea, going back to the gold standard, for example. as an historian, one of the reasons we have been able to avoid serious economic downturn between the great depression and now is because we have had a flexible money supply that has been able to take charge when necessary. >> one of the big issues that william jennings bryan was trying to confront with the silver issue and the gold standard was the great contraction of the american economy. we have lived through a similar contraction recently

let's take a little while to play out it's really the same thing said a follow up on the john laws ben bernanke the analogies what john law it's colorful history a guy he wrote into paris and he bamboozled the kangen monetary history was created in the states ponzi scheme interestingly though when burnett is really it took over from alan greenspan is alan greenspan created this idea that markets could be assuaged with money printing and we had the greenspan put which means that any time markets went down greenspan would bail them out and print more money then bernanke it's a cover then janet yellen took over and now jay powell is taken over so i got 4 successive fed chairman and woman who have been engaged in this obvious fraud with bernanke he was very had a very bad poker face and you could tell he didn't believe a word he was saying he was just setting himself up for that job at citadel when he got out of the out of the fed and cash in as so many politicians and policy and fed chairman do but it's interesting in that we've had now 35 years of this fraud and it goes from chairman to chairman

even someone like ben bernanke, superb communicator and extremely experienced at that, we had the so-called temper tantrum when talking about slowing the growth of the balance sheet, not cutting the growth, but slowing the growth of the balance sheet. we do not have a lot of experience with how these words, how these changes in frameworks affect expectations, and there could be some to molt along the way. there is going to be learning. i think there is a good chance it will be successful, so i think this is going to change the entire inflation process. that.ot so sure about is it going to be helpful to get out of what was a bit of a straitjacket of just talking about 2% or symmetric 2% target, i think is helpful. >> what about success and communication, professor? thatid and remarked today he wants to make sure this is well-communicated and transparent. is he succeeding in that? >> i think he is trying very hard. precisely because he is not restrained by having a phd. he speaks a little bit more like real people speak, rather than other academics speak. iam speaking with a phd, so am critic

true >> i guess it went back in a really rapid, as you point out, in a rapid way to the path that ben bernanke ablazed for them. thank you both for being with us we'll see you again. >>> back to steve liesman. he has a nugget from 9 fed minutes. hey, steve. >> a couple quick ones here. first, the staff outlook that informs the chairman's opinion and other members of the federal reserve quite a lot. they see a rebound in the second and third quarter, but they're concerned about state and lots scaling back the reopenings of their economies, especially for businesses such as restaurants and bars they're concerned about renewed spread of the virus and baking in additional fiscal policy. one more thing i'm sorry tom left they would have gotten a kick out of this. it's a bit on the wonky side, a bit of talk about yield curve controls, capping yields as one measursasure to help reduce int rates. they're not talking favorably about that at all in these minutes. they're saying most people who talked about it saul only limited benefits among the benefits to provide additional assistance to the economy,

under ben bernanke's leadership, the federal reserve adopted many of the features associated with inflation targeting. we made great advances with the initiation of quarterly press conferences and the summary of economic projections which comprises the individual economic forecasts of fomc participants. board vice chair janet yellen led an effort to codify the approach to monetary policy. committee 2012, the issued its first statement on longer goals and monetary policy strategy which we refer to as the consensus statement. a central part of this statement was the articulation of a longer run inflation goal of 2%. because the structure of the labor market is strongly influenced by nonmonetary factors, the committee did not set a numerical objective for maximum unemployment. however, the statement affirmed to committee's commitment congressionally mandated goals. the 2012 statement was a significant milestone reflecting lessons learned from fighting .igh emplacement -- inflation the statement -- the committee had been following for some time. the completion of the original consensus statemen

blockbuster in the withhold wide world, which we know is in bend, oregon, is partnering with air ben bernankes no st -- airbnb e a '90s sleepover however, melissa, it is only limited to three nights, and you have to be a resident of the area and the must rewind before checkout time. this sounds more like an '80s. >> it looks a little '80s-ish, but with the beanbag chair, i don't know if you caught that, bill but they're really limiting it. >> friends and foam provision there as well. if you know somebody in bend -- and i happen to know somebody. >> do you really you should try for it, bill. >> you wonder what they'll watch. you can't lose >>> for the last few months, most of us have been using low-tech solutions to keep our homes clean, now companies are scrambling to come up with high-tech solutions. the latest in clean home technology is next on "power lunch. feeling stressed? try new nature's bounty stress comfort. three unique gummies for your unique needs. find peace. boost mood. sleep well. stress comfort comes naturally, only from nature's bounty ♪ i got it all from you ♪ i'm always pu

ben bernanke, a republican, has been warning about this saying don't make the mistake we made in thend the white house keeps promising a v-shaped recovery. your reporting is that wall street investors, most of them don't think that's going to happen. >> that's right. if you look at what's happened on wall street, the s&p 500 hit its first record high just yesterday since february, and yet some of the real sophisticated investors are concerned right now. just 17% of fund managers who were surveyed by bank of america expect that rapid v-shaped recovery. 31% see a more gradual u-shaped recovery, and this is really what is alarming is that 37% think that there is a risk of a double-dip recession, poppy. >> scary. matt, thank you so much. and thanks to all of you for joining us. i'm poppy harlow. >> i'm jim sciutto. we'll be back after a short break. welcome, today's discussion will be around sliced meat. moms want healthy... and affordable. land o' frost premium!!! no added hormones either. it's the only protein i've really melted with. land o' frost premium. fresh look. same great taste

politics aside to just the economics of it and not repeating past mistakes, are you in the camp of ben bernanke who said don't too little congress, to get us out of the economic crisis. do you think we're in jeopardy of repeating the past mistakes? >> yeah, it's already happened. there is one difference between now and the last crisis, which is this isn't really stimulus. we're not even yet to the spot where stimulus can work in the sense of government spending to try to get the economy moving again. this is literally just rescue and relief while the furnace is out. i mean, we have got to get control of the spread of the virus, otherwise, we're just going to be shoveling money to stay warm. >> and you said that back in april, by the way. i mean -- >> yes. >> you have been sounding that alarm before that. >> even before that. >> republicans in congress are balking at anything over a trillion dollars -- i get it, we're way overspent as a country but if you're saying that this isn't even stimulus, what are we looking at long term here to stimulate us eventually out of this? how many trillions? >>

could it be a catastrophic economic mistake not to do more, just like ben bernanke has warned?nk so. the again, we have a reform plan that would bring those levels down step by step slowly and we are accompanying that with a similar reform plan that would actually reward people who go back to work. it's the incentive model of growth. >> all right. >> if you talk to men and women in business, you talk to men and women, small business, retail stores, restaurants and the like, they will tell you how hard it is to hire back. >> i do. i do all the time. >> i think the real world -- the real world anecdotes to me are worth more than the academics. i'll just leave it there. we would like to make a deal on this and the democrats have not cooperated. that's the problem and that's why the president will take executive action if he has to. >> layer he, let me just leave you with one other for -- for you to other consider one other real world anecdote and that is an email from my friend's mother who wrote this week that it's not just about money going back to work, that this -- that we don

because even rick perry has been critical of ben bernanke. to the callers point and what william jennings bryan was talking about a century ago. >> the gold and silver standard, the legacy of that debate was among other things, the federal reserve system. it was getting what bryan and those supporting him really wanted was a more flexible money supply. in prosperous times they were , happy that have prices go up, just as the fed does today. of course we get in economic trouble like we are now, and people look for panaceas, you might say, going back to the gold standard, for example. but i think, as a historian, in many ways one of the reasons we have been able to avoid serious economic downturns between the great depression and now is because we have a central money supply and the fed has been able to take charge when necessary. >> one of the big issues that bryan was trying to confront with a silver issue and the gold standard was the great contraction of the american economy. he lived through a similar contraction in the american economy. i

it's interesting that ben bernanke who played a part in trying to negotiate the bailout of the banks had written his thesis on the great depression. it seems to be a good example of where history can be helpful. what they understand was that they couldn't -- they couldn't allow bankruptcies to take place. after lehman brothers, i think they realized this whole situation. they realized it had to be international. what went wrong with the great depression is that governments adopted national policies and any attempt to get an international agreement to deal with the great depression failed. and i think that made it much worse. what governments did is to protect their own industries and their own agricultural. they put up tariff barriers. which meant that world trade dropped off sharply indeed and everyone suffered. what i think we're seeing today is what was happening before the first world war, globalization. the period before the first world war was a great period of globalization. it was a period in which people's moved around the world, money moved around the world, trade moved aro

under ben bernanke's leadership the federal reserve adopted flexible inflation targeting with he madereat advances in transparency and communications with the initiation of quarterly press conferences and summary of economic projections which kpris the individual economic forecasts of flmc's participants board choice chair janet yellen led an effort to codify the approach to monetary approach. in january 2012 the committee issued its first statement on longer run goals and monetary policy strategy which we often refer to as the consensus statement. a central part of this statement was the articulation of a longer run-in flags goal of 2%. because the structure of the labor market is strongly influenced by nonmonetary factors that can change over time the committee is it not set a numerical objective for maximum employment however, the statement affirmed the committee's commitment to fulfilling both congressionally mandated goals the 2012 statement was a significant milestone reflecting lessons learned from fighting high inflation as well as from experience around the world with flexibl