, to add new oversight to the fed, to do a lot of things for the fed and the reason for this is in large part because of the fed acting what some people call as a fourth branch of government. central bank has a number of roles. it was actually first designed out of crisis 1913 to deal with -- to serve as a lender of last resort for the economy and for banks so that you don't have runs on banks, you can have stability in currencies. we have had -- this is the fed now is in its third it ration as the central bank of the u.s., the first ration and the central bank were so contentious in terms of federal power centralized in one place they were eliminated and wasn't until woodrow wilson in 1913 that you had the fed created and there is certainly a movement now among conservatives in congress to try to what they say is rein in the fed but i wanted to talk for a minute about some of the things the fed does beyond just the normal sense. monetary policy is the first one we hear about a lot, moving interest rates to influence the economy. the fed brought interest rates down to zero in december of

now with the fed continuing its efforts to keep the economy rolling, energy was strong. gasoline, heating oil and crude oil each saw decent rallies. heating oil is close to a two- year high. now the energy rally translated into energy stocks. halliburton jumped 8%. high. nice move here, new 52 week high. this break out over $40 came on twice its usual volume, bringing the stock to a new 52-week high. the higher oil prices didn't hurt ford, and neither did a recall of 400,000 windstar mini- vans to fix some brackets. shares saw buying as competitor toyota will recall 1.7 million vehicles worldwide, most in japan. the problem is a defective fuel device. toyota stock fell almost 2%. energy wasn't the only commodity moving. coffee prices continue near new highs, which has led starbucks to raise prices in the past. those higher prices didn't hurt starbucks' latest quarter. after the close, starbucks reported better-than-expected results. sales were helped by food sales. let's take a look at starbucks chart. starbucks stock slipped almost 2% before the results, falling from fo

, to addnew oversight to the fed, to do a lot of things for the fed and the reason for this is in large part because of the fed acting what some people call as a fourth branch of government. central bank has a number of roles. it was actually first designed out of crisis 1913 to deal with -- to serve as a lender of last resort for the economy and for banks s that you don't have runs on banks, you can have stability in currencies. we have had -- this is the fed now is in its third it ration as the centralank of the u.s., the first ration and the central bank were so contentious in terms of federal power centralized in one place they were eliminated and wasn't until woodrow wilson in 1913 that you had the fed created and there is certainly a movement now among conservatives in congress to try to what they say is rein in the fed but i wanted to talk for a minute about some of the things the fed does beyond just the normal sense. monetary policy is the first one we hear about a lot, moving interest rates to influence the economy. the fed brought interest rates down to zero in december of 20

fed ahead by david steckel.ncer, in and out of the glove and in it again of marc-andre fleury. >> eddie: every save could be an adventure with the puck rolling around. >> mike: couldn't he just shoot from anywhere? >> pierre: absolutely. i agree. >> mike: the rain is starting to fall a little harder. the penguins go to the offensive but start from 185 feet away. carried back ahead by crosby. fed across for a shot that's struck down by varlamov. good attack there. jim cantore has just reported in that this rain should last only about five more minutes. if he's right, he can pick some stocks for me, too. jabbed along behind. michalek able to play it back up the wing. this went all the way to center. >> eddie: marc-andre fleury just went awkwardly in his crease after that last clear-out by the penguins. >> mike: right ahead is ovechkin. oh, and getting a piece of it was fleury. another try behind for backstrom. fed one in front. jammed at there by jay beagle. still they try. another by ovechkin. that's held by fleu

these he does speak and in fed speak another term for that would be he lives he speak of out of both sides of mouth here's an example in this next headline of inflation ken teo tolls price your feet east so rising maize prices could force the price of tortillas up by fifty percent maize remains central to mexico's diets each of them gets to ninety kilos of tortillas a year we've seen this movie before states ever in two thousand and eight there was a huge spike in paper commodity prices that cause all kinds of dislocation again this is nothing to do with the sound policies that should be implemented to encourage equilibrium in the system this is a broken banking system and the more that they that they flood the system with credit thinking that's going to help the worse the situation becomes well that's exactly correct and alan greenspan as we were reporting at the top of the show he is saying that you know his policies of trickle down basically flood give the bankers as much money as they need and it will trickle down to everybody else what we're seeing is the exact opposite all that

americans are fed up with the repeated incursions into their liberty. however, their disdain for washington doesn't just stop at the party line. americans are fed up with democrats and can republicans who have embraced bailouts, championed so-called stimulus programs and supported big government giveaways. voters understand the true threat posed by this mountain of debt and are increasingly perplexed by bankrupt federal programs like social security, and they're deeply frustrated by federal officials who do nothing to address these serious problems. the american people are fed up with bureaucrats telling them how to live their lives, calling the shots of health care insurance they say they must buy. what kind of food they eat, what kind of lightbulbs they use in their homes. they're also fed up with elected judges telling them when and where they can pray. how we can display the ten commandments. this simmering frustration e erupted into an overwhelming landslide for republicans on election night. in looking at the historic gains in both the house of re

to denote losses by the various regional reserve banks that make up the fed system as a liability to the treasury i.e. that tax. rather than a hit to its capital well this is just more a ponzi scheme financing they studied their accounting methodology at bernie made off university so now you've got the fed and the treasury bernanke and geithner talking to each other and exchanging phantom lots of currencies as i've explained on this show before most of what happens on wall street are just too corrupt bankers writing on cocktail napkins in the lipstick that they buy from some overpriced hooker twenty billion dollars and exchanging that back and forth and charging a fee and then those fees the only way they can be paid in the banks go to business is for the government has been co-opted to extort the money from the general population and that's the american banking system in the global banking system coming to the entire world visa v. what they're talking about a doll most i don't know if you're covering this or not but damn those they're talking about instituting one hundred trillion d

from the fed at zero percent and yet they're engaged obviously in very risky investments as if they are hedge fund own oil exactly under the volcker rule remember the whole point was to shut down the proprietary trading desk because they were taking huge short term risks that were under written by the u.s. public who had to bail them out so that bypass that volcker rule restriction they've gotten into the pre i.p.o. market which doesn't even exist they invented it on the spot there's no even regulations that cover it and they've long donz of facebook well we've been speaking about banks i want to go on to this next headline this is from c.n.n. money two thousand and eleven year of the bank run this is the question they're asking because irish bank deposits declined in november for the fourth straight month the central bank said just this past week overseas deposits fled the country at their fastest pace in more than a year and so they then ask the question is a bank run about to bring europe to its knees but of course will we even know because it could technically we might even have

gotten gains from such predatory lending practices under the fed's new proposal however borrowers will be required to pay off the balance of the loan before the bank loses its right to for clues so that means barr was can still lose their homes even in cases where banks have broken the law i mean they're going to strike down predatory lending laws right so they can reopen the predatory lending down there in the ghetto on wall street so that clio office job you know jamie diamond j.p. morgan his big pink furry pimp pat then go up to the ghetto around america and say i go to purgatory and loans all his own the pimp daddy pip shark you know it's disgusting if you think about it that they applied ghetto economics loan sharking payday loans dealing as a primary business and sending out their ghetto gang bangers the u.s. pentagon sponsored military to go rape and pillage this is the entire business while supporting these banks that takes me to this next headline max and obama's new chief of staff william daley j.p. morgan vice chairman lobbied against financial reform foe of health care bill

on wednesday the fed released a report known as the beige book. that's a survey of economic conditions in the country's 12 federal reserve districts. the report says all districts saw lingering sluggishness in the housing market, which is the key to a full-fledged economic recovery. it says manufacturing and consumer spending improved moderately. some districts reported stronger than expected retail sales during the year-end shopping season. the report says the unemployment situation is somewhat improved in nearly all parts of the country. but it also says employers remain cautious about wage hikes and new hiring. the fed additionally notes that many companies are concerned about the increasing cost of crude oil and oil-related products. >>> u.s. treasury secretary timothy geithner has urged china to allow its currency to rise faster. geithner made the comment in a speech in washington on wednesday, ahead of chinese president hu jintao's state visit to the united states next week. geithner said the yuan remains substantially undervalued and china

, to add new oversight to the fed, to do a lot of things for the fed and the reason for this is in largepart because of the fed acting what some people call as a fourth branch of government. central bank has a number of roles. it was actually first designed out of crisis 1913 to deal with -- to serve as a lender of last resort for the economy and for banks so that you don't have runs on banks, you can have stability in currencies. we have had -- this is the fed now is in its third it ration as the central bank of the u.s., the first ration and the central bank were so contentious in terms of federal power centralized in one place they were eliminated and wasn't until woodrow wilson in 1913 that you had the fed created and there is certainly a movement now among conservatives in congress to try to what they say is rein in the fed but i wanted to talk for a minute about some of the things the fed does beyond just the normal sense. monetary policy is the first one we hear about a lot, moving interest rates to influence the economy. the fed brought interest rates down to zero in december of

and that's tonight's market focus. >> susie: fed-ex and u.p.s. are under investigation by the justice department. anti-trust investigators want to know whether the two package delivery companies are trying to block customers from using third-party shipping negotiators and consultants. the justice department wouldn't comment on the case. but both companies say they are aware of the investigation and call those claims quote "groundless." u.p.s. says the notion that it conspired with rival fedex is quote "outrageous." >> tom: here's what we're watching for next week: our market monitor guest is sandy lincoln, strategist at m&i investment management. monday, alcoa kicks off earnings season. c.e.o. klaus kleinfeld joins us with the results. and with the valuations of online firms like facebook and groupon expanding exponentially, are we in the midst of another dot com bubble? >> susie: on monday, auto supplier visteon will again trade here at the new york stock exchange. the company will use its old ticker symbol v.c. visteon's shares haven't traded o

we like to keep it that way so if you have questions that relate to the fed, asked the fed. and we know how responsive they are. we'd like to keep that relationship the way we have had it in the past. what you will hear today is essentially the same type of presentation that we made to the fed and just to be clear, this is the eac's forecast and it reflects the viewing of this committee. with that i would like to introduce the members of the committee on this site, ethan harris from bank of america merrill lynch, scott anderson from wells, john from wells, scott brown from raymond and james, george from huntington and nathaniel karp from pbca company. with that let me turn it over to stuart hoffman. >> thank you jim and good morning to everyone. thank you to the committee and my colleagues that were just introduced. we had a busy day yesterday in preparation for that a lot of indirection and e-mails getting ready for yesterday. what i would like to do is share with you the highlights. really there are six and as a lookout i can see a lot of familiar faces. glad to have you b

we like to keep it that way so if you have questions that relate to the fed, asked the fed. and we know how responsive they are. we'd like to keep that relationship the way we have had it in the past. what you will hear today is essentially the same type of presentation that we made to the fed and just to be clear, this is the eac's forecast and it reflects the viewing of this committee. with that i would like to introduce the members of the committee on this site, ethan harris from bank of america merrill lynch, scott anderson from wells, john from wells, scott brown from raymond and james, george from huntington and nathaniel karp from pbca company. with that let me turn it over to stuart hoffman. >> thank you jim and good morning to everyone. thank you to the committee and my colleagues that were just introduced. we had a busy day yesterday in preparation for that a lot of indirection and e-mails getting ready for yesterday. what i would like to do is share with you the highlights. really there are six and as a lookout i can see a lot of familiar faces. glad to have you b

the fed's move raised criticism that it may lead to higher long-term interest rates, which could delay the recovery of the housing market. critics also said further monetary easing may also cause more inflation than necessary. but the minutes from the december 14th meeting, released on tuesday, showed that the agreement was reached as risks outweigh the possibility that u.s. economic recovery could pick up its pace due to rising consumer spending. the risks include a worsening of the housing market due to continued high employment. state and city governments may cut spending or raise taxes due to deteriorating fiscal health. and the european debt problem may also negatively impact the u.s. economy. the minutes add that u.s. long-term interest rates rose due to an improving economic outlook and because the fed's additional easing fell below some market expectations. >>> here in japan leading department store sales had a good start in 2011, with promising sales on the first two days of business. sales on sunday and monday combined went up about 13% from mitsukoshi compared to a year ago.

this is the fed using its power to create bank reserves.ssentially a license to print money. they're using the six under billion dollars to buy treasury bonds, which has the effect of lowering long-term interest rates. why are they doing that question of they are ready lowered short- term interest rates to zero. now they're working on the longer-term interest rates. the criticism has been that if the fed does not act carefully enough, these bank reserves that are -- that i referred to earlier could trigger inflation down the line. the fed says it is mindful of that and aware that there has recently been a rise and commodity prices and food prices. it is saying that inflation does not seem to be a big concern now. there are obviously people who are skeptical about whether the fed will be able to manage that transition from its current policy of monetary expansion and ease to a policy of monetary tightening. right now, with inflation and unemployment, the fed thinks it is doing the right thing. host: steed is joining us from michigan on the l

this is the fed using its power to create bank reserves. it is essentially a license to print money. they're using the six under billion dollars to buy treasury bonds, which has the effect of lowering long-term interest rates. why are they doing that question of they are ready lowered short- term interest rates to zero. now they're working on the longer-term interest rates. the criticism has been that if the fed does not act carefully enough, these bank reserves that are -- that i referred to earlier could trigger inflation down the line. the fed says it is mindful of that and aware that there has recently been a rise and commodity prices and food prices. it is saying that inflation does not seem to be a big concern now. there are obviously people who are skeptical about whether the fed will be able to manage that transition from its current policy of monetary expansion and ease to a policy of monetary tightening. right now, with inflation and unemployment, the fed thinks it is doing the right thing. host: steed is joining us from michigan

fed on to the back, paul martin. off the boards for michalek.floated in front and varlamov got that one. jim cantore with an appraisal of our weather. where are you, jim? >> jim: we're up here on the weather roof. no question, it's cooled down. we have dropped about eight degrees from our high today of 56 degrees. that may be a reason why the ice is a little soft. the key about having a front come through is not only does the air cool down but it also takes the moisture out of the air. if you're thinking about moist and soft ice, that should help take care of it as we go through the evening. >> mike: good point. because there was concern that if the air was really moist, it might cloud up the visors. sergei gonchar in buffalo actually removed his, took it away because he couldn't see, it would fog up all the time. puck chipped loose and worked along by jay beagle. david steckel out of ohio state, turned back over to the penguins but then overskated and no luck there for engelland. lifted on to steckel again. >> eddie: big hit, dupuis on schultz.

the fed also set the housing maets ildepressed. commodity prices have risen due to the higher cost of crude oil, but the fed points out that inflation remains below its rg fchvi price stability. >>> the dow jones industrial average temporarily surged over the 12,000 mark for the first time in two yearsnd sen months. new york stocks were bought on wednesday as better than expected new hng sales data raised investor exptaon f the u.s. economic recovery. investors were also encouraged by president barack obama's plans to cut corporate taxat anounsed in his state of the union speech the previous day. but after the dow hit the highest point since june 2008, the average closed bew the ,0 mk due to profit-taking. the dow ended at 11,985, up 8.25 points from tuesday's close. >>> the u.s. federal budget deficit for 2011 will likely hit a new record of$1.48 trillion. on wednesday the congressional budget officennnc i estimate of the deficit for the fiscal year through september 2011. the figure is rger than the fiscal 2009 deficit and amount

and the feds seem to be saying deficits don't matter. and now see how hard it is to turn off the specket? maybe you in the fed can turn it off just like that within your power. for us politically it's not easy. so we got to get a consensus. i think the american people have a sense right now, don't you, mr. chairman, that they want us to do something now. and i want to ask you, are you telling us that you don't -- you think it's premature to start reducing some of our spending levels and some of the government accounts? because it might hurt the economy. the brits don't seem to think so. in a similar situation to ours, they are cutting now. >> what i said, senator, was that it's a long run issue. it has to do with, you know, the problems are not just this year or next year. the problems go out decades. and i think it's not too soon to have a strong set of measures that will bring down deficits over time so that we have at some point a stabilized and declining debt to gdp ratio. i think action is needed. but you are not going to solve the

and the feds seem to be saying deficits don't matter. and now see how hard it is to turn off the specket? maybe you in the fed can turn it off just like that within your power. for us politically it's not easy. so we got to get a consensus. i think the american people have a sense right now, don't you, mr. chairman, that they want us to do something now. and i want to ask you, are you telling us that you don't -- you think it's premature to start reducing some of our spending levels and some of the government accounts? because it might hurt the economy. the brits don't seem to think so. in a similar situation to ours, they are cutting now. >> what i said, senator, was that it's a long run issue. it has to do with, you know, the problems are not just this year or next year. the problems go out decades. and i think it's not too soon to have a strong set of measures that will bring down deficits over time so that we have at some point a stabilized and declining debt to gdp ratio. i think action is needed. but you are not going to solve the

>> they should not expect loans from the fed. the numbers the chairmen refer to our perspective gaps. they are a measure of how much spending cuts will be needed to achieve balance. it will be difficult but there is some improvement in the economy. tax revenues have picked up. i hope these dates will be able to address it. >> places like california have been living beyond their means for a long time. our state is very frugal. we try to operate a good state. we are not inclined to ask my constituents to rescue someone who has been improper. i know what mr. christie is doing in new jersey. the agriculture department reduced 24%. education down 8%. rhodes' 3%. i suggest new jersey is not going to sink into the ocean. it will still be there. this idea at that even this deficit commission, i hope i would have been willing to support the recommendations as good as anything we have seen. it does not call for reduction in federal spending. we can do better. the american people are telling you. i don't criticize some of you folks includin

if you have question related to the fed, at the fed. we know how response of they often are for that. we like to keep that relationship the way we have had it in the past. what you win here today -- what you will hear today is the same type of presentation. the forecast reflects the feelings of this committee. i would like to introduce ethan harris, scott anderson, scott brown, and nathaniel. let me turn this over to stuart hoffman from pnc financial services group. >> thank you and good morning to everyone. we had a busy day yesterday in preparation for that. a lot of interaction and e-mails getting ready for yesterday. what i would like to do is share with you the highlights. as i look out, it is nice to see familiar faces. good to have you back. there are six highlights from our economic outlook. we shared them with the board of government -- the board of governors. they have been outlined in the press release. with the outlook for real gdp. as the press release says in the headline, our committee -- this is a consensus from the medi

and the feds seem to be saying deficits don't matter. now see how hard it is to turn off the specket? maybe you in the fed can turn it off just like that within your power. for us politically it's not easy. so we got to get a consensus. i think the american people have a sense right now, don't you, mr. chairman, that they want us to do something now. and i want to ask you, are you telling us that you don't -- you think it's premature to start reducing some of our spending levels and some of the government accounts? because it might hurt the economy. the brits don't seem to think so. in a similar situation to ours, they are cutting now. >> what i said, senator, was that it's a long run issue. it has to do with, you know, the problems are not just this year or next year. the problems go out decades. and i think it's not too soon to have a strong set of measures that will bring down deficits over time so that we have at some point a stabilized and declining debt to gdp ratio. i think action is needed. but you are not going to solve the prob

and the feds seem to be saying deficits don't matter. and now see how hard it is to turn off the specket? maybe you in the fed can turn it off just like that within your power. for us politically it's not easy. so we got to get a consensus. i think the american people have a sense right now, don't you, mr. chairman, that they want us to do something now. and i want to ask you, are you telling us that you don't -- you think it's premature to start reducing some of our spending levels and some of the government accounts? because it might hurt the economy. the brits don't seem to think so. in a similar situation to ours, they are cutting now. >> what i said, senator, was that it's a long run issue. it has to do with, you know, the problems are not just this year or next year. the problems go out decades. and i think it's not too soon to have a strong set of measures that will bring down deficits over time so that we have at some point a stabilized and declining debt to gdp ratio. i think action is needed. but you are not going to solve the