>> the gao is authorized to audit a full range of the federal reserve responsibilities that include all of the emergency transactions, the discount window, the supervisory authority, to reassess specks of authority and an area congress reserved for the reserve is an implementation of the policy. the actual policy-making decision process. the gao does look at how we implement a policy and the far left making sure that transactions actually occur and therefore on the balance sheet that when they are fully disclosed the decision making process for the monetary policy is the one thing outside of the scope of authority. >> mr. chairman, may i follow up with one brief question on what are the arguments for excluding it, why was the excluded, was the argument for it? >> the importance of allowing the federal reserve and the fomc to conduct monetary policy independently is demonstrated throughout the world in both actions, the other central banks and a variety of studies of monetary policy. the point i think is the congress wanted to reserve to the fomc the ability to have discussions foley and

world to hold reserves, and as you know, the dollar is the principal reserve currency, at the federal reserve of new york we hold over $3 trillion on behalf of the foreign central banks in countries. it is very important to hold those sizable reserves because the sizable reserves are principally in festive and treasury securities which helps to finance the debt of the united states. so holding the dollar reserves is a very important function of the federal reserve and we do that at the new york fed and its similar to functions other foreign central banks perform around the world. >> my time is expired. thank you. >> i yield to mr. greene from texas. >> thank you mr. chairman and the witnesses for appearing as well. i am interested in the central banks of other countries as compared to our country and the disclosure the engaging compared to our country, and i know that the systems are not going to be the same boat with reference to a disclosure can you give some indication so we have some sort of comparison? >> so the practices of disclosure very quite a bit around the world but i believe the

federal reserve. we also required the fed to make information about the transactions through emergency landing facilities from decemb december 2008 to march 2010 available to the public. in addition, dodd-frank required that the fed disclose information about the entities that use the discount window, or under i believe it was section 13-3 lending facility. but in addition to what we required in dodd-frank, the federal reserve has also already subject to robust congressional oversight. and i'd like to ask our two witnesses, can you give the committee some examples of the types of congressional oversight that you are already required to do? even before dodd-frank. >> two of the most important types of oversight are the chairman of the federal reserve, the chairman of the fomc, provides testimony on the economy twice each year on the call of the house and the senate. and that is an important check on monetary policy in the state of the economy. another important method is this hearing and hearings like

it is time we not only on that the federal reserve, but also get rid of the federal reserve in due time. [applause] a few years ago it was very evident there was a financial bubble, especially the housing bubble. the bursting of the bubble was on our doorstep. the free-market economist predicted it and it did arrive. this has given a lot of credibility to the views of us who look at the federal reserve as the culprit in creating the financial bubble. when the bailout came, congress intervened, of course, and spent nearly $1 trillion bailing out the people who were making a lot of money that we're bankrupting the reserves. they should not have been bailed out. [applause] what a lot of people did not know and a few have difficulty understanding, it was a much bigger bailout by the federal reserve. they created about $5 trillion out of thin air and then they bailed out the banks and big corporations in total secrecy. guess what? all of those derivatives and assets that were worthless that nobody could sell on the marketplace -- guess what? we, the taxpayers, but those with money printed ou

i trust the federal reserve will do its job. i think it can produce a good rule, a rule that's fair to consumers, retailers, small businesses and the banks too. let me go to senator corker's point. senator corker said you know the problem with senator durbin's amendment, he just doesn't allow the banks to add in all the possible charges and costs in a debit card transaction. he's just allowing them to count the value of the dough in the pizza and not all the other things that they might add in. no. what we said was, you could charge a fee, reasonable and proportional to the cost of the transaction. pretty simple right, reasonable and proportional. well, this amendment on the floor decided to open the door wide open. it's no longer reasonable and proportional. they have full pages here describing all the different things the banks can add in to establish the fee they charge small businesses and consumers. are you trusting of these banks to be careful in what they add in? i'm not. and i can tell you that when you look at the list

the men and women of the federal reserve said today the economy has worsened. wrapping up a two-day policy meeting today, they said the economic recovery is progressing "somewhat more slowly" than expected, the job market is "weaker than expected," housing continues to be "depressed" and inflation has "picked up." and tom, despite that gloomy picture, the fed still says it will end its program to buy government bonds on june 30 as planned. >> tom: susie, fed members also voted unanimously to keep a key interest rate near 0%, hoping to boost the economy. the central bank's own economic forecast was revised down. it now expects the u.s. economy to grow 2.8% this year. as for the labor market, the fed predicts the unemployment rate will get down to 8.8% this year. >> susie: fed chairman ben bernanke talked more about his outlook and policies to fix the economy at a news conference this afternoon. our washington bureau chief darren gersh was there and has this report. >> reporter: with the economy performing worse than he and his colleagues expected, the key questi

that's the way the law now is, that the federal reserve, the federal reserve can only take into account, as they regulate the debit card industry, what that incremental cost is, what adding one transaction to the system would cost. everybody knows -- i mean, the retailers who are opposing our amendment, know that there is no way that any of them could survive in th the retail industy if their costs were only allocated to them on an incremental basis. so everybody knows that this is flawed. i don't think there's any debate about the fact that the way we're looking at regulating the debit card industry is flawed. but what people are doing, it's almost sort of a venezuelan approach, you know. well, we're angry at these folks and so even though we know that assessing the cost of dibbed --t cards and only allowing incremental covelets, even though we know that's inappropriate and even though we know that no business can survive, we're still going to do this because the banks did this or the banks were involved in mortgages. and it is a policy that just doesn't make sense. it's not an appropr

in addition to the flexibility to s provided the federal reserve to t sethe the rates, the amendment di also intscends to provideitional discretion to the federal factor reserve to include additional factors. impact such as the overall impact of regulating interchange fees on small businesses and the economy as well as discretion in the w agency that the federal reserve may consoles when drafting the th study.ust in addition it is intended the findings must be made public and fro that the federal reserve is not required to start from square able one. the intent is for the federal reserve to be a will to build gathere already upon the information insight current they have gathered already and are a part of the current record.'t finally, this amendment doesn'te's abi to undermine or inhibit the federaling reserve ability to implement the routing and network expressivity in provisions in the underlyingte. statute and infected as quite the opposite. la weng sought to prefer deily tonallynclu preserve these language and provisions as they wereast cou originally included in the statute in t

government cain you know the pizza guy who used to run the federal reserve bank and of course last but not least texas congressman ron paul of course i'd like to remind you all that c.n.n. refused to allow former new mexico governor former governor gary johnson into this wide open debate the two term governor who left with a budget surplus of one billion dollars was told by c.n.n. that is probably.

that's the word today from federal reserve chairman ben bernanke. speaking at a conference in atlanta this afternoon, bernanke said he's not worried about the economy slipping into recession. >> tom: but susie, bernanke did acknowledge the u.s. is not producing new jobs fast enough. he called the job market "far from normal." still, the fed chief expects economic growth to pick up in the second half of this year. as darren gersh reports, bernanke says one critical component to that growth outlook is the consumer. >> reporter: yes, the economy is slowing, but federal reserve chairman ben bernanke does not see it stalling. >> with the effects of the japanese disaster on manufacturing output likely to dissipate in coming months, and with some moderation in gasoline prices in prospect, growth seems likely to pick up somewhat in the second half of the year. >> reporter: that would be welcome news for the president. a recent poll shows confidence in his handling of the economy has fallen. today, mr. obama tried to address those worries. >> i'm not concern

economy and this week's federal reserve meeting. >> i think what the federal reserve can do, in its statement, and especially at the press conference, it could reassure people that in fact the economy is not going into a double dip. >> tom: it is the last meeting before the fed finishes its $600 billion bond-buying program. what stock and bond buyers want to hear. it's "nightly business report" for monday, june 20. this is "nightly business report" with susie gharib and tom hudson. "nightly business report" is made possible by: this program is made possible by contributions to your pbs station from viewers like you. captioning sponsored by wpbt >> susie: good evening everyone. stocks on wall street posted decent gains today, as investors became less anxious about greece's financial problems. european officials agreed to advance the country its next quarterly installment of bailout money. tom, investors are now focusing on this week's fed meeting. >> tom: absolute focus here, susie. fed policymakers meet tomorrow and wednesday to decide what's next for interest rates. >> susie: what will the f

since 1914, the federal reserve has published its balance sheet every week. we also publish full financial statements annually that are audited by an independent public accounting firm woolwich for the last for years has been devoid to. these audits covering the brain can donate money to enabling pre-as well as transactions through the discount window and with foreign central banks. the federal reserve publishes a special meant to report to congress posted on their website that details the federal reserve's emergency lending programs, including providing information on the amount of 19 under each program, the type and level of collateral associated with those funds and information about our asunder those facilities. in addition the federal reserve bank of new york maintains a website that includes schedules of purchases and sales of securities as part of open market operations with information describing securities involved. the federal reserve is fully cooperating with the gao and an extensive review of each of the special lending facilities develop during t

and he has not pressure will continue to increase but even if our demands are not met the federal reserve system is doomed to failure as millions will simply opt out of the system itself while opting out as much as possible from the violent government that imposes it on us you can try to make sales of precious metals or but coins illegal but you cannot effectively outlaw barter and the people can always survive without you in orlando city government has made it illegal to feed people in sight of the city overlords and arrested several members of food not bombs for feeding million children such an offense to humanity could not go unpunished so anonymous has shut down the orlando chamber of commerce website and used it to tell people to boycott the city expect more such retribution meanwhile the european commission is telling social networking websites that they are not doing enough to protect minors european commission vice president neelie kroes said in a statement quote youngsters do not fully understand the consequences of disclosing too much of their personal lives online and note this

federal reserve chairman, ben bernanke. he's been painting a bleak picture of the u.s. economic recovery as well. weaker growth, nina and stubbornly high jobless numbers. not what investors want to hear. >> not indeed, andrew. let's go straight to the european markets and see how they're reacting to these kind of comments coming out of the united states late last night. we're about an hour into the trading day. it's a sea of red. the cac 40 down by 0.8%. similar situation for the dax and ftse 100. let's move along and talk about the currencies now. the euro is down by almost 0.5% against a rising dollar. the situation in greece very much in the forefront of investors' minds. the pound is also taking a hit, down by one-fifth of 1%. yesterday we had the publication of the bank of england's minutes. that had many believing that they won't raise interest rates until next year. we saw more quantitative easing. let's look at the yen. >>> it's all about the economy at the moment. let's take a look at what happened here in asia. a bit of a mixed day. the trend was down, the s&p

>> tom: what's next for the federal reserve and its chairman, ben bernanke. should it do more to kick-start the economy? can it do more? >> if anything, the fed is going to just hunker down, keep the size of its balance sheet constant so it keeps its current stance accommodative. >> susie: we ask bond guru bill gross about the fed's next move, greece's debt crisis, and the health of the global economy. it's "nightly business report" for tuesday, june 21. this is "nightly business report" with susie gharib and tom hudson. "nightly business report" is made possible by: >> tom: good evening and thanks for joining us. a triple-digit rally in blue chip stocks today as u.s. investors were counting on a crucial vote of confidence in the greek government after the market close, susie, and that's how it played out. a short while ago, the greek parliament supported prime minister george papandreou. >> susie: tom, that removes a lot of uncertainty and could set a positive tone for trading here tomorrow. another important factor for investors-- a key meeting of the feder

morgan and the federal reserve bank of washington dispensing inside information illegally bloomberg is involved in legal conspiracy that's not conspiracy theory that's conspiracy fact it's all siding to bloomberg bloomberg being of course now running for president supposedly lining things up where is he getting that money oh i get it it's inside information which he will of course try to legalize to cover his butt at the end of the article there's a quote it's going to be awfully tough to identify the source of the leak in this case because of course it's always awfully difficult to prove insider trading twenty eight nations were involved so a whole lot of people knew this ahead of time well the see if you see another regulator's they don't have the money to pay for. the subscription on bloomberg to show you who's trading on inside information they're bankrupt purposely on purpose so that they can possibly prosecute insider traders but also as liam graff goodman proved earlier this week is most things are no longer illegal anyway they've been unwound all the regulations against insider

the end of the press conference everyone's been waiting for or at least if you're a reporter federal reserve chairman ben bernanke he took to the podium today with more bad news but is he misleading the tealeaves when it comes to the economy we'll bring you the details in just eight that. meeting it's wednesday june twenty second coming live out of washington d.c. and he's the captain of any watching our t.v. . well of all the server hosting contingency plans on the books here's one they probably missed a web server takedown and a seizure by the f.b.i. that's exactly what took place in reston virginia on tuesday f.b.i. agents raided a data center in the wee hours of the morning confiscating services used by and number of companies taking many sites offline and it's kind of unclear what the federal agents were investigating at the moment but folks say that it's unprecedented move by the agency details of course are still murky but let's see if our next guest can help us make sense of it all now declan mccullagh is a correspondent at scenic news and joins us live now that one now what do we kn

. >> susie: a lot of people are saying the federal reserve will step in and fix things up. do you think the finish will come in and buy more government -- bonds or take some other action? >> i sure hope not. because the u.s. economy is not suffering from a lack of liquidity. it's suffering from a lack of confidence. and the problem is that every time the federal reserve says it going to come in in some emergency action to fix things, people with faith in their abill -- lose faith in their ability to fix things themselves. and the best thing the finish could do is tell people that interest rates -- the best thing the federal reserve could do is tell people that interest rates are going higher. this is a great time to buy a house, but as long as they say they're not going to raise rate, people wait and see. >> susie: most people get worried when they hear that interest rates will go up. why would that be a good thing? >> i think would it abe good thing for two reasons, first i think it would reflect confidence, everybody else is confident that the economy is getting better, t

let the federal reserve issue issue its rule this month. they're going to come out with it and let's look at it. nobody knows what it's going to say. i've heard both senators who introduced this amendment say, well, this rule we can't accept this rule. they don't know what this rule is and neither do i. it hasn't been issued yet or published. at a minimum shouldn't we wait to see it before we say it's unacceptable?

returning excess cash to shareholders in share repurchases. >> tom: the details surrounding the federal reserve's rescue of bear stearns in the spring of 2008 will remain sealed. a federal appellate court ruled today the central bank's board of governors does not have to release those records. a former f.d.i.c. official had sued to make them public. he wanted details on why the fed thought bear's emergency funding was necessary, but the court said revealing that information would undermine the federal reserve's ability to function. as we heard earlier, the job market may have slowed, but that hasn't spoiled the stock appetite of tonight's "market monitor." stephen wood is back with us. he's chief market strategist at russell investments. so he's back at it now with an investment strategy. what does your slower growth outlook mean for strategy, stocks versus bonds? >> yeah, you're probably in a lower return environment and a slower economic growth rate. we don't think it's going to be a recession but it will be a more difficult environment. and i think what that's going to look at it is a globally

and it's the press conference everyone's been waiting for the federal reserve chairman took to the podium today with more bad news for the u.s. economy this morning he missed reading the economic team leaves we'll bring you the details in just a bit. and get ready for sticker shock at the grocery store food prices are expected to soar over the next decade we're going to break down what's really fueling that search. that evening it's wednesday june twenty second four pm here in washington d.c. . and watching our t.v. . well it will be a mission accomplished speech for the president will address the country at eight pm this evening where he's expected to announce the start of his long promised wind down of the afghanistan war now by all accounts obama is caught between the pentagon brass and his political base the generals of course want to stick it out but his supporters and not to mention a growing number of republicans say that are you know he can't get out of the country fast enough as for how many troops will come home and over what period of time we can only speculate now reports say

if more needs to be done, i'm on board, but the notion that we can't even trust the federal reserve to come up with a rule on this that may protect small businesses and consumers across america is just plain unfair, it's wrong, and we ought to know better. i reserve the balance of my time. the presiding officer: the senator from montana is recognized. mr. tester: mr. chairman, i, too, want to echo the thoughts of the good senator from illinois. senator durbin and i are friends. it may not sound like it today but we are. we just happen to disagree on this particular piece of policy. there is one premise that i think, mr. president, that is being taken as a given that is not a given at all, and it was in the original durbin amendment, and it said we were going to exempt banks of of $10 billion and less and credit unions of $10 billion and less. so we're going to do that. a lot of folks voted for this amendment because they knew the small banks couldn't distribute their costs and it could have undue harmful effects on the small banks, small credit unions and community banks. but the facts

happened, essentially, is that we have had a trillion and a half increase in the asset level of the federal reserve system, a trillion and a half increase in excess reserves, and a trillion and a half increase in the deposits, that is the excess reserves which commercial banks hold at the federal reserve banks. those are very big numbers but the usual thing that happens in an economy is that the deposits which the commercial banks have start to be relent. and it is that which what economists call the money multipli which engenders economic activity. to this day none of it, none of the 1.5 trillion has been effectively moved out of the simple positionof immobility. and the reason basically is the banks have no ide wha thr tax rateses are gng to be or what their cital requirements are going to be. and that is frozen lending. >> the only thing you can suggest that migh be the most helpful thing would be somehow for corporate america, small and large, to have more confidence and ss uncertainty about the future. that would contribute more to econoc growth than anything you can imagine. >> absolutely. ro

all being indoctrinated that only banks can create wealth so this is reuters asking might the federal reserve extend its bond purchases beyond june what until this week was a pioneer sky notion is suddenly fair game for market speculation well not on this show we've been saying unequivocal a the q e three or the equivalent is coming you know to read out and of course they would let the market go through some kind of crash of some sort to frighten people into begging for the next q.e. and to totally annihilate their purchasing power and this is the great thing about propaganda and the confidence tricks used by the federal reserve and obama administration is that they get people to actually beg for their own imprisonment that's the trick we said this almost two years ago at q.e. one that there will be q.e. two in q e three in q e four in q e five but they're acting in the mainstream media like that this was considered pious guy or are only in the fringe media is what they're saying because the wealth component in the u.s. is tied to consumption you know seventy percent of the g.d.p. is consumpt