you announced that the federal open market committee of an inflation target of 2%, core inflation currently stands above the fed's target of 2.2%. you announced that the federal funds rate will be held at zero through 20 parentheses. in question comes from the point of view, you said if there's a trade off between decision making on unemployment and inflation, as i read it, unemployment would have a higher priority. is a federal, is a fed sending a signal that keeping inflation in check is a secondary priority to achieving full employment and in what situation is the fed going to act if the inflation continues the rise? >> it true a 12 month backward look shows inflation at 2%, as we look forward and the energy price increases of early last year, have you know, not recurred, oprojections are that inflation will below the 2% target going into 2012 and 2013, so our best, because monetary policy works with a lag, we have to think about where inflation will be not where it been in the past. inflation has been averaged two years, over 2% a year over my tenure and we expect it to be 2% or below i

prison they have more of a chinese style state capitalism now with the politburo of the federal open market committee it's no longer free market capitalism so laying the groundwork for a chinese you know setting the table so that the china can come in and buy a company and hit the ground run.

at the most recent meeting of the federal reserve open market committee >> at the most recent meeting in the federal reserve open market committee, a decision was announced to leave interest rates at effectively zero until late 2014. not only was this a new policy of disclosure, but it marks an historic duration for any federate policy. in case you've forgotten, the fed first dropped the rate in december of 2008. ever since then, those of us who borrow money to operate businesses have rejoiced at rates of as low as 3 to 4%. this policy has now gone on long enough for it to seem normal. it is anything but. in fact because of the time delay in savings deposits, the full effect of a zero interest rate is now just being felt, as longer-term saving certificates mature, investors are watching five or six% yields, for exampling being replaced with rates under 1%. even with no payoff, the world cannot seem to get enough u.s. government debt. investors are actually paying 1 to 2% to loan the u.s. money. one of the reasons for this has been hard for me to grasp. there is simply enormous wealth

prison they have more of a chinese style state capitalism now with the politburo of the federal open market committeeit's no longer a free market capitalism so laying the groundwork for a chinese you know setting the table so that the china can come in and buy a company and hit the ground running so to speak without too much problem so it sounds assumes like america is doing its best to accommodate their new overlords the chinese now many common commentators in america of course dismiss china as the low wage low value manufacturer of global predominance these what are your thoughts because there's a lot of. chinese sears goes a recent articles last few weeks in forbes by gordon charles who's a big. chinese here wrote a book called the coming collapse of china the only problem was he wrote a book in one nine hundred ninety eight. so we look at the structure of the chinese economy what is china export united states what does the united states export to china look at the real numbers the major exports from united states to china last year was cornered so we beings scrap steel and scrap plastic looks mor

prison they have more of a chinese style state capitalism now with the politburo of the federal open market committee it's no longer free market capitalism so laying the groundwork for a chinese you know setting the table so that the china can come in and buy a company and hit the ground running so to speak without too much problem south south assumes like america is doing its best to accommodate their new overlarge the chinese now many common commentators america in.

you recently announced that the federal open market committee's goal of the inflation target of 2% core inflation currently stands above the fed's target at 2.2%. separately you also announced that the federal funds rate will likely be held near zero through 2014. this question come from the point of view that you said if there is a tradeoff between the decision making on unemployment and on inflation, at least as i read it, unemployment would have a higher priority. is the federal -- is the fed sending a signal that keeping inflation in check is a secondary priority to achieving full employment and to what extent is the fed willing to act should inflation continue to rise? >> senator, it's true that a 12-month backward look at inflation shows inflation a bit above 2%. but as you look forward and as the fact that the energy price increases last year have not reoccurred, our projections are that inflation is going to remain he is subdued, below our target going into 2012 and 2013. so our best -- monetary policy works with a lag. we have to think about where inflation is going to be, not

prison they have more of a chinese style state capitalism now with the politburo of the federal open market committeeit's no longer free market capitalism so laying the groundwork for a chinese you know setting the table so that the china can come in and buy a company and hit the ground running so to speak without too much problem south south assumes like america is doing its best to accommodate their new overlords the chinese now many comment commentators in america of course dismiss china as the low wage low value manufacturer of global predominance these what are your thoughts you know there's a lot of. china needs sewers the recent articles last few weeks in force and.

minutes for the latest meeting 0 the federal reserve open market committee will be released. on thursday the first of the monthly inflation indicators with the release of the producer price index. and consumer price index comes out on friday. that will do it for us for today. thank you for joining me. my guests next week, leading bioethics scholar sikh emmanuel. the doctor that played a key role in the health care reform debeat bait. see you again next weekend.

the latest meeting from the federal reserves open market committee will be released.ursday, we get the inflation indicators. tracking costs at the wholesale level. and the consumer price index comes out on friday. that will do it for us for today. thank you so much for joining me. my guest next week, leading bioethics scholar, zeke emanuel. each week, keep it right here where wall street meets main street. have a great week, everybody. i'll see you next weekend. uh oh. should we be letting him p-l-a-y with our t-a-b-l-e-t? [ mom ] i think it's fine. it's the new element from at&t so it's w-a-t-e-r proof. cool. what else does it d-o? it's fast. it's 4g lte. what's l-t-e spell? nothing. w-h-y? hey, can we stop spell talking now? ok. a-y. [ male announcer ] buy a waterproof pantech element for $249.99 and get a 4g burst smartphone free. only from at&t.

minutes for the latest meeting 0 the federal reserve open market committee will be released.st of the monthly inflation indicators with the release of the producer price index. and consumer price index comes out on friday. that will do it for us for today. thank you for joining me. my guests next week, leading bioethics scholar sikh emmanuel. the doctor that played a key role in the health care reform debeat bait. see you again next weekend. oh will you grab us some yoplait? sure. what flavor? mm, one of each. lemon burst, hm, cherry orchard, blackberry harvest... my daughter's grabbing some yoplait. pina colada, orange creme. i can't imagine where she is... strawberry cheesecake. [ grocery store pa ] clean up in aisle eight. found her! [ female announcer ] yoplait original. 25 flavors for you to love. it is so good.