powers and insufficient threats to the stability of the market as a whole was part of it grade the federal reserve responded forcefully to liquidity pressures during the crisis consistent with the lessons of federal banks have learned over more than 150 years summarized in the writings of a british journalist. "lend early and freely to solvent institutions." however, institutional contexts had changed substantially. the panics of the 19th and 20th centuries was about commercial banks and other depository institutions. prior to the recent crisis, in contrast, credit extension had migrated outside of traditional banking to so-called shadow banking entities, which relied heavily on short-term wholesale funding that proved vulnerable. accordingly, to help calm the panic the federal reserve provided liquidity, not only to commercial banks, but also to other types of financial institutions, such as investment banks and money market funds, as will those for commercial paper and asset backed securities. because funding markets are global in scope and u.s. banks depend on foreign lenders, we also proved cu

>> not at the federal reserve.l reserve and the united states of america. would you describe what you're doing here you call it quantitative easing in a term that has been made up i guess we all make that, but is that a stimulus you use the term monetary tool is that what you would call it to halt to stimulate the economy? >> it is a tool that is intended to push down the longer term interest rates to stimulate the demand and spending. >> is this in the area of economics something that others have espoused over the years at times when you have got high unemployment? gandy you use a monetary tool to stimulate the economy? >> well, friedman and others -- i don't know if they actually thought about this, but a number of economists have written about something called the portfolio balance the fact that basically is about supply and demand that by the upper class of assets it may be possible to push up their prices and push down their yields and thereby affect the financial conditions in the economy. >> was set several

in fact, madam president, the federal reserve balance sheet shows that the federal reserve itself is by far the largest holder of u.s. treasury bonds, with $2.2 trillion in treasury debt, the fed holds nearly $900 billion more than china does, if you can think in those terms. madam president, the fed holds more in treasury bonds than do china and most of the euro zone combined. madam president, the rate of acceleration with which the federal reserve is purchasing treasuries should be alarming to all americans. on the day of president obama's first inauguration, the federal reserve held $475 billion in treasuries. today it holds $2.2 trillion in treasuries. that represents a 363% increase in the past five years, and it's no coincidence that president obama has greatly accelerated our national debt over that same period of time. there is a connection here. when he took office, the national debt stood at a large $10.6 trillion. that's a lot of money. today it stands at $17.3 trillion, five years later. the federal reserve is aiding, i believe, and abetting the failed policies and the re

isn't it true the federal reserve is a sickly the buyer of -- federal reserve is basically the buyer of our bonds? >> senator, we are purchasing -- >> for the most part? >> we are purchasing a substantial wanted tea of -- a substantial quantity treasury and mortgage backed securities, but we certainly are doing so for the sake of helping the government finance the deficit. in circumstances where we have -- we are doing so to achieve the goals that congress has assigned to the federal reserve. in circumstances where we have run out of scope for conducting monetary policy when our overnight interest rate target has hit zero, we really have to rely on alternative techniques, and we are certainly not the only central bank that has recognized this and is undertaking similar programs. >> you allude to other central banks, and i don't know of any other central bank i think we should follow. we should set the example here, and the fed has darkly. -- has historically. i will run out of time in a minute. unemployment. you mentioned unemployment. 7.2% ornemployment is 7.3%. 7.2%. what is reall

however, the federal reserve now has effective tools to normalize this policy when conditions warrant without reliance on asset sales. the interest rate and excess reserves can be raised which will put upward pressure and short-term rates. in addition, the federal reserve will be able to employ other tools such as fixed rate, overnight reverse repurchase agreements, term deposits or term repurchase agreements to drain bank reserves, to tighten control over money market rates in that proves necessary. as a result, at the appropriate time, the fomc will be able to return to conducting monetary policy primarily through adjustments to the short-term policy rate. it is policy, however, that some specific aspect of the federal reserve's operating framework will change. the committee will be considering this in the future, taking into account what is learned from this experience from the new tools for managing interest rates. in the remainder of my remarks, i will reflect on the state of the u.s. economic recovery and its prospects. the economy has made considerable progress since the recove

federal reserve, like other central banks, wield powerful tools.emocratic accountability requires that the public be able to see how and for what purposes those tools are being used. transparency is particularly important in a period like the recent one. including the provision of liquidity to a wide range of financial institutions and markets that do not normally have access to the fed's discount window to help stabilize the financial system and the economy. prints -- of transparency are needed? central bankel the must be clear of its operations. particularly when they involve the employment of public funds. since the crisis is has greatly increased the quantity of its regular reports to the congress and public. is asserted,hat all of the financial transactions are subject to regular intensive audits are the government accountability office, an independent inspector general, and a private accountability firm. it is a testament to the dedication of the federal team thatmanagement these throw audits consistently produced assessments of the financial

issue is the whole discussion of the federal reserve and federal reserve policy has been caught up in this very polarized political have beenthat we experiencing in these countries these days. in the papers there is a chart of democrats and republicans and their support for the fed. that polarization shifting and switching and getting worse over time. a very disturbing example in my mind, this was in the republican --maries, who will fire bank fire been burning cane fast as. when thesturbing to me republican congressional leadership wrote a letter to the federal reserve trying to dictate portfolio choices. this is a direct interference or and attempt to interfere. then there are the votes against ben bernanke when he was reappointed and janet yellen more recently, the number of votes in the party, i think you can see the polarization affecting the fed. the third issue that i think is worries some is that many of onse objections centered inflation and an overly accommodated fed. painting is always unpopular central --oliticians many politicians. a long time of unemployment. i think the

adopted, my proposal would limit the damage that governments do, particularly the damage the federal reserve system does. the current example is excessive expansion of bank reserves that spilled over to other countries. some, like japan, respond by depreciating currency. others experience the non-warranted inflation. still, others, turkey for example had difficulty adjusting. the amount of problem that has occurred is small so far because the amount of reserves that the fed has produced are almost entirely idle reserves. more than 95% of qe2 and kiwi three have the first round of expansion and then our idle and help at the banks. the question to which i do not find a sensible answer if you ask with $2.5 trillion is sitting on idle on banks balance sheets and $2 trillion sitting idle on corporate balance sheets, white in the name of goodness can the federal reserve do that the banks and corporations do by themselves. i make two additional governments do not limit damage or prevented. two additional proposals have little reason for the world of economic capital flows of the magnitude three exp

i think it's the devil and the dollar the federal reserve has been problem getting it so. she's watched and served but is zero interest rate policy now the problem is that they're going to engineer with your interest rates up until two thousand and fifteen late two thousand and fifteen at the same time quantitative easing is continuing. now all this talk of tapering doesn't mean that to me has ended basically as a something cut back on the amount of bombs that they're buying but what huey means is that every month the treasury excuse me the federal reserve prints of invents creates out of nothing but air seventy five billion dollars worth of money and use that money to go out into the markets and prop up treasury bonds now without this propping up of seventy five billion dollars a month which is approximately nine hundred billion dollars a year without this propping up for your bonds would collapse in value and interest rates would start a rock remember prices of bonds are inversely correlated to their heels now if you have the situation of escalating meals of interest rat

federal reserve officials. now well with the fact that there are still some empty threats on the board of the federal reserve have any impact on the town of picher fed policy decision of. well now that's an interesting question and a good question because we don't entirely know who's who's going to fill the slots for example we do think that there's a good chance stanley fischer is going to be nominated hero and accepted two to one of the slots and i think that he would find that his. policy stance is really to have lee well in line with earth and so what it really comes down to though is is to what extent is the president pick. members that are generally in line with janet yellen thinking or that the boards think in general and as long as he continues to pick members that are generally in in that vein then when it see a large change in in the composition of the policy making behavior the followers are so if a share is nominated you expect that we'll see more of the same is that we're saying through insisted pa

at the end of october the federal reserve formally applied for application in the insurance association. international association of insurance supervisors, for membership. the united states already has membership on that through the federal insurance office, created by dodd-frank. can you tell me why the fed should have membership, its own membership on that board? and furthermore, why there should be a focus on that when domestic oversight challenges seem to be a much higher priority? >> well my understanding, senator, is that now that the federal reserve has been charged with supervising some of the largest insurance companies that have been designated by fsoc as systemic, that we want to be in a position to work with regulators in other countries as we have in the case of banking rules to make sure that we have internationally compatible -- >> and fio, excuse me but the fio can not fill that need or you? >> i'm not certain. i think we felt it would be beneficial to participate in that group. >> okay. in our conversations about insuring capital standards appropriately tailored to ins

issues -- in federal reserve issues. i likewise maintained regular contact with both the bush and obama administrations principally through meetings with the secretary of the treasury and other economic officials. the crisis and its aftermath, however, raised the need for communication and an explanation by the federal reserve to a new level. we took extraordinary measures to meet extraordinary challenges, and we had to explain those had beens to earn the public's support and confidence. talking only to the congress and market participants was no longer enough. the effort of to inform the public engaged the whole institution including both board members and the staff. as chairman, i did my part by appearing on television programs, holding town halls, taking student questions at universities and visiting a military base to talk to soldiers and their families. the federal reserve banks also played key roles in providing public information in their districts through programs, publications, speeches and other media. the cris

federal reserve officials. now well with the fact that there are still some empty safe stuff on the board of the federal reserve had any impact on the town of picher fed policy decisions well now it's that's an interesting question and a good question because we don't entirely know who's who's going to fill the slots for example we do think that there's a good chance stanley fischer is going to be nominated hero and it's up to two to one of the slots and i think that he would find that his. policy stance is really to have lee well in line with earth and so what it really comes down to dollars is to what extent is the president pick. up. members that are shown are only in line with janet yellen thinking or the divorce thinking in general and as long as he continues to pick members that are generally in in that vein they wanted to see a large change in in the composition of the policy making behavior the followers are so if the share is nominated you expect that we'll see more of the same is that we're saying. pa

five hundred these are all the products of the federal reserve essentially printing money to inflate these bottles it's it's classic pump and dump this is the same thing that those those. you know are fly by night equities brokers out new jersey to do with any stocks of pumping and dumping this is what the federal reserve is doing by printing up this money and propping up the dow jones and all these blue chip companies but there is no inherent value behind it because the problems of two thousand and eight where never solved and so the federal reserve has been very very good at keeping the problems down the road here we are in two thousand and fourteen but the problem is we're never solved and they have become worse to the degree. the federal reserve has been printing money and creating the conditions whereby eventually there will be a run on treasury bonds now i think that's why bush i just want to clarify this does that money. go to treasury bonds on the other have got a mortgage bond so. you know they do but. at this time i do believe that after this tape right to believe that the

that's outgoing federal reserve chairman ben bernanke.e's talking about unemployment, inflation, and highly accommodative monitory policy. and even today he mentioned that he set transparency as an important priority for a the time that he served as fed chair. when he talks like that is the public meant to follow or is he talking in -- >> during the press conference it's difficult for him not to get technical because we ask him somewhat technical questions, but i think he has done a great job. his predecessor alan greenspan believed in policy by discretion, and it was sort of we're doing this because we think its best. we're not going to tell you the reasoning behind it, and ba bernanke has gone out of his way to discuss the policy. he has not use the average person's vernacular, i think he does his best to describe why the fed is doing what it's doi doing. >> in this case what does this mean? >> very low interest rates for a very long time. the fed is going to remain supportive of the economy regardless of this small retreat from the won

the fears are being compounded by moves of the federal reserve. fed officials will meet to consider another draw down of stimulus spending. sparking higher interest rates and stronger u.s. dollar on world currency markets. that has been hurting some countries amid-political problems. turkey and ukraine further accelerating the fears of a global slow down. the money is moving instead to traditional safe havens like u.s. treasuries and that has left many wondering if the stock market is headed for a downward correction, something analysts have feared after last year's record surge. though the markets have pulled back, they'll be higher a year from now than they are today, for that reason, he says it's a great opportunity to ease your way into the market if you've been sitting on the sidelines. you're optimistic, you see an opportunity in all of this turmoil. explain. >> if you missed the market run over the last couple of years and frankly a lot of investors have, i would take this as an opportunity top start putting some of that cash to work. some

from like minded center does ish federal reserve officials. now well with the fact that there are still some empty safe stuff on the board of the federal reserve had any impact on the town of picher bad policy decision of. well now it's that's an interesting question and a good question because we don't entirely know who's who's going to fill the slots for example we do think that there's a good chance stanley fischer is going to be nominated hero and accepted two to one of the slots and i think that he would find that his. policy stance is really to have lee well in line with birth and so what really comes down to those is to what extent is the president picked. up. members that are shown are only in line with janet yellen thinking or the thinking in general and as long as he continues to pick members that are generally in in that vein then when it see a large change in in the composition of the policy making behavior the followers or so if the share is nominated you expect that we'll see more of the same is that we're saying you insisted pay

aaron i think the biggest misconception that people have of course federal reserve its right i mean it's public but it's not why is that not the case that's exactly i mean the title is almost intentionally mis. misconceived because it isn't a federal institution it isn't a public institution it's a private institution that serves a public mission and it fulfills this in a variety of ways but basically it's a group of private banks that kind of got together like you mentioned a jungle island initially to serve the needs of the public basically to serve the banking needs of the united states of america that is what the fed does it's not it is a private institution and was designed to be a hybrid of the to make no mistake it is not run as by the federal government ever and this was not a new concept i mean other countries had several big systems is the federal reserve was the u.s. central banking system concocted jackal island the original intent as you said was the kind of. stabilize the booms and busts of the economy what it turned into though i mean it seems like it started off as a crim

yellin is an extraordinary candidate to lead the federal reserve. she currently serves as a member and vice chair of the board of governors. she previously served as a member of the board of governors in the 1990's. she was a chair of the -- of president clinton's council on economic advisors and she served six years as the president of the san francisco fed. in addition, dr. yellin has an impressive academic record. she is a professor at berkeley's school of business and was previously a professor at harvard university as well as a faculty member of the london school of economics. dr. yellin graduated suma cum laude and received her phd in economics from yale. the nomination is especially timely as our nation struggles with high unemployment in the wake of the great recession. she has devoted a large portion of her professional and academic career to setting labor market, unemployment, monetary policy and the economy. dr. yellin also has a strong track record in evaluating trends in the economy. her academic analysis has been spot on. the "new york

but the third part of the triple whammy came from the federal reserve. its policy setters announced a further $10 billion reduction in its stimulus bond buying program. on the day the dow fell more than 1% to 15,738. the nasdaq also tumbled and s & p finished at 1774. in every other way, though, natural gas it finished at a four-year high up 10%. >>> as tyler just said. the federal reserve stuck to its plan to trim back its bond-buying program. wrapping up a two-day policy meeting and ben bernanke's lasts one as chairman of the fed, the central bank seemed unsafazed i the recent emerging markets. . neither recent emerging market currency turmoil in turkey and elsewhere nor the disappointing december jobs report was enough to get the federal reserve to change its mind about trimming its bond buying program. at ben bernanke's last meeting as chairman of the federal reserve, monetary policymakers were unanimous to reduce purchases by northerly $10 billion to 65 billion per month starting in february. leading analysts were not surprised. >> we couldn't see a

is the job of being federal reserve chief also political? >> no doubt. i'm sure that janet will be very attentive to her relationships with important senators and congressmen up on the hill and with other central bankers. the job is to make sure that the fed maintains its political independence, but also is not subject to political pressure. and that's a tough line to follow. >> and finally, stephen, if you could say one thing to janet yellen, what would it be, stephen oliner? >> good luck and be yourself, because i have complete confidence that she's going to be a great fed chair. >> want to thank you both very much. stephen oliner american enterprise substitute and alice rivlin from the brookings substitute.

federal reserve. he had to deal with the worst financial crisis since the great depression. he oversaw a massive government stimulus program. he gets to watch as janet yellen takes the helm, a groundbreaker for many reasons. linda you looks at the road ahead. in the 100 year history of the u.s. federal reserve, there have been many different years of -- many different ways of handling the economy, but always one, and nominator. there was a man in charge. but that is changing. janet yellen is taking over. a 67-year-old former academic, moving up from the number two job at the fed, she will present a radically different face but not a radically different policies from her predecessor, ben bernanke. recovery, hee flooded the economy with cheap cash and capture rates low. now that the economy is getting back on track, janet yellen's era will be different and she has made clear her focus. >> the mandate of the federal reserve is to serve all american people. too many americans still cannot find a job and worry how they will pay their bills and provide for their families. the fede

that's the chairman of the federal reserve. at her nomination hearing before the senate banking committee governor yellen, then the vice-chair now still the vice-chair of the federal reserve, said too big to fail is -- quote -- "among the most important goals -- ending too big to fail is -- quote -- among the most important goals in the post-crisis period." that's one of the many reasons i rise today to support and argue for janet yellen's confirmation as the chair of the federal reserve. today's complex financial system, it is more important than ever that we have strong regulators like governor yellen who can recognize emerging threats to economic stability and who isn't afraid to act when they find abuses that put american consumers and workers at risk. throughout her distinguished career at the fed more than a decade governor yellen has shown she understands how risky financial practices deep inside the largest wall street banks can have a terrible and terrifying impact on american families. she was among seven or eight yea

thes the job of being federal reserve chief also political? >> no doubt.l bee that janet very attentive to her with important senators and congressmen up on the hill and with other central bankers. the job is to make sure that the fed maintains its political independence but also is not subject to political pressure. that is a tough line to follow. say onely if you could thing to janet yellen, what would it be? >> it would be just good luck and be yourself because i have complete confidence that she will be a great fed chair. >> who want to thank you very oliner and alice rivlin from the brookings institute. ♪ >> live from pier 3 in san francisco, welcome to bloomberg -- the late edition of bloomberg west where we cover the global technology and media companies that are reshaping our world. i am emily chang. our focus is on innovation, technology, and the future of business. let's get straight to the rundown. ces is about to kick off. google has turned out

is that the federal reserve will continue on their quantitative easing program and they're going to continue on the type tapering of that program. so we are likely going to see another $10 billion reduction in the large- scale assets purchase program which is gonna put the federal reserve on track to end the large scale asset's purchase program sometime in the second quarter of this year. so far the economic data that coming out really supports that decision. should investors start to prepare for some sort of bond crash? say if all of a sudden and interest rates go sky high and the decline happens to be huge in the bond market. > i don't think i would call it so much as a bond bust or a bond fallout. i definitely think that we are at the lows in interest rates. obviously we are going to mean revert, meaning that we're probably going to go back to historical norms. which means that we're going to experience higher interest rates. of course that's what happened over a period of time, so the federal reserve has pledged to hold short rates down through 2015 and that's going to provide a

or the outgoing chairman of the federal reserve for his conduct communications his behavior the way that he managed the effort i am see the policies that he implemented at a time it should be said when the federal government was basically withdrawing its responsibility from economic management so i think what that's about really is the over reliance on monetary policy that we've developed over the last few years. well i think he you know if he goes down in history which you certainly will as as a the chairman of the federal reserve the most important time of crisis and western in the american economy of the western world i think you'll get good reviews i think he performed very well i and what about q.e. was quantitative easing the right policy prescription in the u.s. and the u.k. . that's a good question and we'll carry on debating that for a long time but my feeling is that when q.e. was introduced at the beginning. it was designed to on block the blocked arteries of credit which were the product of the financial crisis be the sudden sort of heart stopping moment where liquid

no it shouldn't if the federal reserve say target five percent nominal g.d.p. growth rate and that's kind of what it was during the great migration years from two thousand and seven what we saw it simply happen is that real g.d.p. grew about three percent inflation about two percent you see the same kind of product it was full of it again if you focus on stabilizing total dollar spending you're not going to see any huge run up in inflation or or fall on it's we target normal g.d.p. you're still a korean long run inflation expectations so you wouldn't see a big destruction of the bond market you still have the the long run price stability that inflation tare brings but in the short run it gives you a whole lot more flexibility to respond to economic shocks provide more stability and december two thousand and eleven the economists there was an article published in there on how the economic crisis triggered a rise in various schools of economic thought in the article said quote the market monetarism is the first economic school of thought to be born in the blogosp

no it shouldn't if the federal reserve say target five percent nominal g.d.p. growth rate and that's kind of what it was during the great migration years from eighty four to two thousand and seven what we saw it typically happen is that real g.d.p. grew about three percent inflation about two percent you see the same kind of product it was full of it again if you focus on stabilizing total dollar spending you're not going to see any huge run up in inflation or or falling is we target normal g.d.p. you're still a korean long run inflation expectations so you wouldn't see a big destruction of the bond market you still have the the long run price stability that inflation targeting brings but in the short run it gives you a whole lot more flexibility to respond to economic shocks provide more stability and december two thousand and eleven the economist say there was an article published in there on how the economic crisis triggered a rise in various schools of economic thought in the article said quote the market monetarism is the first economic school of thought t

. >> there is a new leader at the federal reserve. the first female to run the nation's bank. and a job market that looks very much different today than it did just a year ago. >> and that's where we begin tonight. one of the biggest things in the american economy undergoing significant change is the labor market. the unemployment rate is coming down, but the amount of people looking for work is at a record low. those out of work for an extended period of time now have no safety net. >> veronica is caught in the crossfire of the new economy. she is one of the 3 million americans who are out of work for more than a year. that $1200 a month has been an economic lifeline. >> not having that money is devastating. i don't know where i'm going to get money to pay my rent, to buy food, to pay car insurance. it's -- it almost leaves me speechless just trying to articulate what it means not to have that money to fall back on. >> reporter: what's next for her? it's complicated. armed with a phd in law enforcement, it was not that long ago when she was earning more than $75,000 a year, o

for the federal reserve, the country and for me personally. i thought it would be appropriate to reflect on some accomplishments of the past eight years as some uncompleted tasks. i will briefly cover three areas in my remarks. the federal reserve's commitment to transparency and accountability, financial stability and financial reform, and monetary policy. i will close by discussing the prospects for the u.s. and global economies. fostering transparency and accountability in the federal reserve was one of my principal objectives in front were 2006. i had long advocated increased transparency and in particularly a more explicit policy framework to make policy more predictable and effective. my efforts have made it more effective, but i will discuss the steps are approved important in other spheres as well. as a beginning expected to build on the framework that i inherited from paul volcker and alan greenspan. my predecessors had solidified the commitment to low and stable inflation as foundations of broader economic stability and they graduall

i was given the task to talk about monetary policy at the federal reserve. specifically around the issue of the zero lower bound. the zero lower bound is basically the constraint that you cannot lower nominal interest rates much below zero. it was an issue that economists and other central-bank economists had studied extensively in the 1990's and before the crisis. one thing that spurred the research was the experience of the last decade in japan and the experience of the great depression in the u.s. economists thought hard and studied how big of a threat was the zero lower bound, what were the implementations for monetary policy. at the time, interest rates were well above zero, people thought it was an academic concern. research, which identified a number of issues, i highlighted three of them. the first one was the fact that the zero lower bound is a real, practical concern. it is not just abstract, it is not japan being special or unique. it is an issue we should take very seriously. in the paper i did with dave from the board of governors, we said if yo

>> the important thing about federal reserve chair people, i guess we have to use that term now, is theye an influence that goes way beyond the specific mandate of the fed mandatory policy. their economic thinking is enormously influential not only in washington but around the world. this there is the most important economic job in the world and the second most important job in washington after the president. so i think her four-year term, during that time we're going to see a lot of testimony and discussions with congress that will shape new thinking on unemployment. >> so gillian tett at the same time she has expressed worry about joblessness, she is also under pressure to wind down the stim husband program that the federal reserve has been engage in, the bond asset buying, so-called imawnt take easing. how much tension is there between those two goals? >> well, the reality is, there's rising tension right now and you can see that in terms of the people sitting around the table with her on the federal reserve committee, because opinions will increasingly divided about just how quickly

money for nothing, inside the federal reserve. sunday night at 9 p.m. eastern. thank you for joining us. shoathe show may be over but the conversation continues you can catch us at @ajconsiderthis. have a good weekend. >> good evening everyone. welcome to al jazeera america. i'm john siegenthaler in new york. she's alive. from war torn syria astonishing video of a little girl pulled from the rubble of a rocket attack. >>> on edge in ukraine. flames in the street. unrest spreading and we're there live tonight. >>> pay up. an $8 million raise for the embattled boss of j.p. morgan

helen has the texture and then at the federal reserve the senate's none on monday makes it the first female head of the us central bank and one of the most powerful women in us history. she is said to be a major economy gallon will officially take the reins on that very first replace the current fed chairman and remain key to the sec and forty her term expires at the end of this month. sixty seven year olds now and currently serves as the feds sites chair. as a supporter of the easy money policy the fed has been pursuing under permit. she's expected to continue the fight to bring unemployment down. even if that means strategies that drive inflation high gear linda and nineteen republicans who voted against her which goes against the effect of classic eighty five billion dollar a month on buying program even though the fed decided to ski for the monthly purchases and down to seventy five billion starting in january. at our first appearance as a nominee to succeed remain key last november. the other said she would follow in their predecessor's footsteps on quantitative easing previousl

many will be watching the federal reserve in terms of their meeting. hear from them tomorrow on what they choose to do on tapering. we saw emerging market currencies under pressure at the start of this year. the r.b.i. in india, the central bank there actually moving on interest rates to stem the fall we have seen in the rupee. things different than how they have been over the last couple of trading sessions. let's get to top headlines for you. ukraine's prime minister icholas azarov has resigned. they are expected to hold a no-confidence vote in the government. r.b.s. is on track for its biggest pretax loss since 2008. they set aside 3.1 billion pounds more for legal and compensation claims. a surprise rate increase from the reserve bank of india. they raised their bench mark to 8% from 7.75%. u.k. g.d.p. figures for 2013 come out in about an hour's time. there are signs of a pickup in growth. questions we main how sustainable it is. manus cranny joins us with a look at these numbers. >> a good 2013. the ability to replicate that is going to be tough.

yellen prepares to head the federal reserve. what challenges does she face? we will take a look.t is the price of ignoring a ponzi scheme? we will examine the jpmorgan settlement. ♪ >> i am julie hyman. let's take a look at where stocks are trading. we have a rebound today after three down days for the s&p 500. stocks are higher today. people are looking ahead to earnings season and the earnings report on friday. in terms of movers, we're watching the best performer last year, not so great today. netflix was up about 300% last year. , it was cut. we will have more on the markets for you in 30 minutes. you will get more "lunch money" after the break." ♪ ," this is "lunch money trimming live on bloomberg.com. today's moving pictures, where the video is the story. temperatures are plunging as a mass of arctic air fleets across the country. it was a d in central park yesterday. scientists call the cold air a polar board-checks. if you're outside, you're probably calling it something else. commitmentel chapter ,- cap her commitment to appear after being injured in a cross- country ski

lori: the focus turns to the federal reserve. we're one hour until the decision which will be chairman ben bernanke's last. will be full taper ahead for ben bernanke and company? adam: frozen in time, atlanta paralyzed after a winter storm dumped a few inches of snow. commuters are stuck in talks after waiting in traffic for hours. students spent the night at school. it is just an absolute mess. lori: atlanta hawks steve homan joins us with how it played out in the city at tonight's nba game against the detroit pistons. so much for the relief rally did started the day on wall street. let's head to the stock exchange and check in with nicole petallides but the emerging market fading fast. nicole: emerging markets problem, also technical levels, the dow jones industrials down 137 points, the lowest down 174 points. we are of of the lows of the day but seeing the down arrows and i will get to why dow is down. you can thank belling for that but there are concerns about earnings going for. many companies reporting despite concerns abo