advocate spending is moderate in recent years despite support from low-level federal funds rate and federal reserve holdings of longer-term securities. with the federal funds rate somewhat below estimate, the neutral rate, the stance of monetary policy is likely moderately accommodative which is appropriate to progress towards the fomc objectives but because monetary policy is only moderately accommodative the risk of falling behind the curve it appears limited. and likely sufficient to get to a neutral policy stands, and the economic outlook is uncertain and as always the appropriate path to the federal funds rate will change in response to recent changes for the outlook and associated risk. thank you and i will be pleased to answer your questions. >> thank you for your opening statement. something caught my attention during the statement. in reading your statement earlier, this caught my attention, the case for an increase in the primary, relatively soon. unless, what perked me up a little bit, further evidence indicated to the contrary. my question to you, the results of election, does that fall

has been moderate in recent years despite support from the low level federal funds rate in the federal reserve's large holding of longer-term securities. with the federal funds rate currently only somewhat below estimates the neutral rate, the defensive monetary policy policy is moderately accommodating which is needed for progress toward the fomc objectives. because monetary policy is only moderately accommodative, the risk of falling behind the curve in the near future appears limited and gradual increases in the federal funds rate will likely be sufficient to get to a neutral policy and over the next few years. of course, the economic outlook is inherently uncertain, and always, the appropriate path to the federal funds rate will change in response to changes to the outlook and associated risks thank you, and i would would be pleased to answer your questions. >> chair yelling, thank you for your opening statement. something caught my attention that statement that i hadn't, in reading earlier, it had, and attention. you stated that the case for increase in the prime rate relatively soon, unles

moderated in recent years despite support from the low-level of the federal funds rate in the federal reserve'sarge holdings of longer-term securities. with the federal funds rate currently only somewhat below estimates at the neutral rate, the stance of monetary policy is like we moderately accommodative which is appropriate to foster further progress towards the fomc's objectives but because monetary policy is only moderately accommodative, the risk of falling behind the curve in the near future appears limited and gradual increases in the circle funds rate will likely be sufficient to get to a neutral policy stance over the next few years. of course, the economic outlook isn't terribly uncertain and is always the appropriate path to the federal funds rate will change in response to changes to the outlook and associated risks. thank you and i would be pleased to answer your questions. >> chair yellen, thank you for your opening statement. something caught my attention during that statement that i hadn't been reading your statement earlier, this caught my attention. stated that the case increa

as a consequence the dodd-frank act place new limits on federal reserve powers. it is a complex issue. emergency provision of liquidity will probably always have the appearance of a special privilege for a few select firms and in a real sense it is. it protects financial firms from suffering firesale losses. the justification for llr is financial firms undertake fire sales which affect other firms and firms may be rational for short-term creditors they are not always justified through economic fundamentals. it is based on the idea everybody can be made better off if the government can prevent panic but the fed's llr policies were discretionary, so without these fundamentals, should be allowed to fail the is the rub is in the midst of a run you can't tell the difference between a firm that deserves liquidity support and one that isn't. the judgment call can always be open to criticism. why save bear stearns and let lehman fail and save aig the next week? discretionary policy create a lot of problems. the need for llr is somewhat ironic given regulatory rhetoric. f

moderated in recent years, despite support from the low-level of the federal funds rate in the federal reserve'srge holdings of longer-term securities. with the federal funds rate currently only somewhat below estimates of the neutral rate, the stance of monetary policy is likely moderately accommodative, which is appropriate to foster further progress towards the fomc's objectives, but because monetary policy is only moderately accommodative, the risk of falling behind the curve in the near future appears limited, and gradual increases in the federal funds rate will likely be sufficient to get to a neutral policy stance over the next few years. of course, the economic outlook and, asently uncertain always, the appropriate path to the federal funds rate will change in response to changes to the outlook and associated risks. thank you, and i would be pleased to answer your questions. >> chair yellen, thank you for your opening statement. something caught my attention during that statement that i hadn't been reading your statement earlier, this caught my attention. stated that the case increase in

moderate in recent years, despite support from the low level of the federal funds rate and the federal reserve's longer-term securities. with the federal funds rate currently only somewhat below estimates of the neutral rate, the stance of monetary policy is likely moderately accommodative, which is appropriate to foster further progress toward the fomc's objectives. because monetary policy is only moderately accommodative, the risk of falling behind the curve in the near future appears limited and gradual increases in the federal funds rate will likely be sufficient to get to a neutral policy stance over the next few years. outlooke, the economic is inherently uncertain, and as always, the appropriate task for the funds rate will change in response to changes in the outlook and associated risks. thank you. i would be pleased to answer questions. >> chair yellen, thank you for your opening statement. something caught my attention during that statement. that i have not in reading your statement earlier, had not just, intention trade you stated that the case when increase in the rates relatively s

we're welcoming this morning chair yellen, federal reserve chairman. i would like to just announce to my colleagues and many of them will be filing in shortly, we have a hard stop at noon. both for the chairman's sake and we have a senate vote at noon, so we're doing everything we can as chair to get everybody the opportunity to ask questions of the chair, but to my colleagues, it's a hard stop, so we're not going to be able to go beyond that time frame. the joint economic committee has a long tradition of receiving regular updates from the chair of the federal reserve. and we're pleased to hear the chair's insights once again before the congress adjourns for this cycle in 2016. while we have seen some encouraging metrics of economic performance over the past year, the next congress and the next administration will still face a number of challenges. eight years after a deep recession, we're still looking for a higher rate of gdp growth, stronger productivity growth and increased work opportunities, especially for prime age workers. low interest rates h

that is not the job of the federal reserve.ob of the federal reserve to explain how markets work, to explain, for example, why free-trade is a value. it does not lobby for those particular plans, and should not. mark: alan greenspan on a break america's this morning. jonathan: -- vonnie: steve ballmer tells us tout his move from the board the desktop or. this is bloomberg. ♪ vonnie: from the board room to the basketball court, former microsoft ceo steve ballmer bot be the first. -- bought the clippers. >> it is completely different. comparing them may not be the most interesting thing to do. i love the game. i love seeing us go out there and win. there are aspects to the job as well. how do i properly interact with their coach, our staff, our players? what is my role? we have big decisions in front of us. where do we go in terms of changing the way sports is consumed, using digital techniques? virtual reality and live statistics in addition to let's go when some ballgames. hopes for theur new season? how can you beat the warrio

you have three federal reserve primary dealers who think the federal reserve will hold off on hikingks until 2017. rbs believend they will hold off. that, despite the improving economic data and the hawkish tone from the officials. implies 71% probability of a chance of a hike this year. you have the market said on to 71%. -- you have the market set on 71%. three primary dealers kicking back against consensus. jeremy, do you disagree with that? this is the dollar strength story that we have. is december locked in? >> i cannot speak for the reasoning of those three primary dealers to change or have a different assumption, but certainly we have been assuming that the fed would hike in december. i think there are obvious parallels. we have been dreading those inallels through q3 and q4, terms of the interpretation of the u.s. dollar getting a bid. we have seen a number of coursenities over the of the last couple years, which have really meant that the fed has held rates far lower than perhaps is appropriate for the duration of the economic cycle. i think the market would read it rather

but to undermine the independence and the credibility of the federal reserve is a very dangerous action that may be very difficult to undo once it is out there. and i don't believe these are just abtract discussions of the potential for undermining the credibility of a central bank will have a direct impact on the economy and ultimately on our constituents back home. and i believe that members of congress have the added responsibility as elected officials to uphold these important norms that have guided our country for decades. with that i would urge my fellow policymakers here in both the legislative and executive branches to exercise caution and prudence when it comes to these types of krit sicriticisms. turning to a question, attorney yell yellen, i believe one of the most critical challenges we face in our banking system today is cybersecurity. we face tremendous threats every single day as i know you are well aware. the warning signs are very evident. one example was in february 2016. hackers successfully stole $81 million from bangladesh central bank by sending false payment reque

and theh outlook -- federal reserve will provide rate hikes.ould anticipate how inflation in a muted way. the action of the federal reserve will be important to with inflation for the u.s. vonnie: what assets are better to be holding and in what duration? to reduceis important the duration of fixed income. there are ways to reduce the duration. the longest duration is to be ornd in consumer staples [indiscernible] e compartments are in danger. goods flow,of the the curve steepen's the banks will make money on the curve. the hottestof regulations against the banking sector. it is more in favor of banks and against [indiscernible] please carry on. asin: for the fixed income, we mentioned one of the hardest is ae last decade momentum in the fixed income area of the long end of the curve. 2017 to reduce the duration on the fixed income as much as the equity portfolios. mark: you can't see my chart, days ofs clear euro 10 declines against the dollar, longest losing streak since 199. 9. hello does the euro go -- how low does the euro go? alain: prior

what does it mean for the federal reserve?g to have more government spending, does that mean they will hike quicker? these are things weighing on investors minds since the election. they were trying to factor in some of the proposals that donald trump has been putting forward. saying about $250 billion worth of government infrastructure spending. is that how the federal reserve is going to be looking at this, doing their own sort of mathematics on a solution? >> i think that we will be looking into how much fiscal tightening has come about because of the moon -- because of the moves in the markets and the financial index that we have not seen for much of this year now. that tells you that the move and the dollar -- moves in the dollar and the moves in the bond market are doing some of the tightening or the fed and that will cause slackening -- slacking off a bit. down the line, they will have to think about how do we find the right balance between moving now and avoiding having to move faster, later. mark: in 1994, former pres

the federal reserve gets together at the end of this year. how you do it when you do not know what is happening yet. gary stern: you give it your best shot. you may have all kind of qualifiers and caveats around it but we have economic models that enable us to plug-in significant tax cuts. significant spending increase and infrastructure and offense. -- defense. the models will grind out a forecast for you. you can change or monetary policy assumptions if you want to. the thing is, you do not take the model results simply and writing them down. at least i didn't. i gave it some judgment at thought about how did i think of this was going to play out. was under no illusions i would be precisely correct. i hoped to be directionally correct. directionally correct at this point is if fiscal policy is expansionary and judicious and monetary policy pushes back but only modestly, i think you are going to have a higher path for economic growth at least in the short term. and you should probably expect more inflationary bailey said the short term. prob

we look to the federal reserve decision tomorrow. while none of the banks expect to move, three primary dealers said the central bank will hold off on december as well. our investors misguided? mark: have a look at where european equities are trading, under 30 minutes into -- until the end of the trading session. that is the longest losing stretch since february. takengs continuing to center stage, which brings me to standard chartered, the lender that makes most of its earnings in asia. shares falling as much as 4.7% today, the most since june 27. it reported first-quarter profits that missed estimates, revenue falling in all its main divisions. bill winters looking to show he is restoring the losses and that is what investors want. -- whichsharp drop in drove them to their first annual loss in 1989. in august they said they would probably miss the future profitability target because of an uncertainty in -- uncertain regulatory environment. bc, at standard and ages they did not fall as much and they have come back more due to their

election, changes to the federal reserve.d. that is a little longer. how hot is too hot or is it too soon to ask? >> inflation is still running below 2%. we will get to 18 in terms of the fed's measure core pe. too hot will be a conversation we begin to have once we begin inflation above the 2% level. then the debate about are we running it too hot, is the fed behind the curve, all of that will come back in. we are still trying to get the inflation figures back up. it is really about core levels of inflation. core levels of inflation up to 2% and then maybe we'll have that conversation. >> if you take a look at the if it moves up far enough, that has more to hike here at what happened here? >> when we talk about the idea of the long run it will agree him for neutral rate, it is another code word for growth. growth toe kind of that,r, what comes out of low levels of interest rates. reform,structural changes, immigration reform or demographic, things you can onnge, change the outlook growth in recent, then it is not as low, it

and positive as a result for the federal reserve.er for the fed to achieve its inflation targets without worrying about running into the effect of lower bound on interest rates. jonathan: let's talk about something not helpful for the fed or the fed chair. some comments on the campaign trail targeted at janet yellen. the idea that she may be not removed but certainly wouldn't get a second term. how damaging is some of that rhetoric in the federal reserve? felt that was i completely appropriate. about what the time kind of supreme court justices they will appoint and they are pretty free to express their views on that. it is very important for the public to know what kind of federal reserve chair a new president -- a new candidate -- is going to a point. mr. trump was very clear. i didn't agree with him, i think chair yellen is doing a great it is good to alert the american public of that before they had a chance to vote. david: i want to get back to your view about the medium-term. you think president-elect donald trump could make it

adam: i'm going to bring this up. >> i want to get rid of federal reserve.m: janet yellen, turns is up in 2018, i was going to say, you would be last chairman of federal reserve. >> yeah, if the senate was there, and everyone was ready for it, you know who knows what might be ready, central banks in last 10 years has debacled a lot of cred bitty, i talk about federal reserve no one cared. oh, fed, they are part of the problem, they kept interest rates too low too long, we're hey have interests and 0% for all these years, and there is no improvement, so it is getting to a points, i think what going to happen, not one individual like made all of a sudden turning the switch, i think that they evenly self destruction. their policy, right now in a way like at interest rates are doing, everyone said if feds twisted switch the stock markets would crash but they have gone up. it is exhausted itself. adam: thank you so much ron paul. >> you're welcome. adam: liberal say that donald trump will start what they call muslim registry here in united states, is it what they

put the federal reserve at risk, markets do not like this, it will put the federal reserve at risk,instability, if he create economic and financial instability, if he wants create economic and financial instability, if he wants to instability, if he wants to pursue this instability, if he wants to pursue this path is aggressively, it this path is aggressively, it will be this path is aggressively, it will be a very different context to be a very different context to what we've in the last be a very different context to what we've in the last few hours. we've in the last few hours. mohammed, we've in the last few hours. mohammed, i'm we've in the last few hours. mohammed, i'm interested we've in the last few hours. mohammed, i'm interested in mohammed, i'm interested in fact that mohammed, i'm interested in fact that he mentioned his tone last that he mentioned his tone last night. that he mentioned his tone last night. he did quite that he mentioned his tone last night. he did quite conciliatory, night. he did quite conciliatory, do you think that will you think that will make a dif

moderate in recent years despite support from the low level of the federal funds rate and the federal reserve'sings of longer term securities. with the federal funds rate currently only somewhat below estimates of the neutral rate, the stance of monetary policy is likely moderately accommodative, which is appropriate to foster further progress toward the fomc's objectives. but because monetary policy is only moderately accommodative, the risk of falling behind the curve in the near future appears limited and gradual increases in the federal funds rate will likely be sufficient so get to a neutral policy stance over the next few years. of course the economic outlook is inherently uncertain and as always the appropriate path for the federal funds rate will change in response to changes to the outlook and associated risks. thank you. and i would be pleased to answer your questions. >> chair yellen, thank you for your opening statement. something caught my attention during that statement that i hadn't in reading your statement earlier i hadn't caught my attention. you stated that the case for an in

we're ten minutes away from the federal reserve and janet yellen.l they surprise pretty much everybody, pull an ali and shock the world and raise rates. probably not. it could put out a very hawkish tone about the december meeting and, remember, it is not what they do almost, it is what they say. so let's get a check on the markets prefed. bob pisani, rick, the cubs will win today, rick at the cme. bob, you're first. >> i'm with you on that. no rate hike. but what you see here is the markets have done a lot of work for the fed in raising rates and the stock market clearly reacted to the recent rise up in rates, more than 20 basis points in the ten year. look at, for example, telecom and real estate investment trust. two rate sensitive groups. down nearly 10%, telecom lowest level since january. real estate investment trust down 8%, lowest level since february. that's the clear effect of higher interest rates in the last six, seven, eight weeks. high yield stocks, they held up well. look in the last seven days, seven days in a row, russell 2000, unde

president-elect trump, it is also the federal reserve. neel kashkari speaking yesterday at the economic club of new york laid out the plan he promised last february to address the issue of banks that are too big to fail. that gives us our morning must-read. he talked about the balance between safety and economic growth. he said "we cannot make the risk zero and safety is not free."

. >>> federal reserve chief chairman janet yellen is expected to talk about the economy today. >> let's get to jill wagner from the floor of the new york stock exchange. >> reporter: good morning, the dow snapped a seven-day -- [ no audio ] fed chair yellen testifies in front of the joint economic committee in d.c. this morning. she'll likely be asked about president-elect trump and how his policies could affect the economy and whether they'll derail the fed's expected interest rate hike next month. black friday is past

i don't think the federal reserve has become politicized.'t think they have been compromised by the election. grant thatldn't you inflation would be in a very different position this time next year under a donald trump than under a clinton presidency? interestingreally question. if donald trump is elected and destabilizes the world and we have a massive global crash absolutely inflation would be in a very different place. we would have deflation. that's what we experienced at the end of 2008 and early 2009. donald trump will affect the rate of inflation. there's other things to worry about including his broader impact on the stability of the global economy. simon johnson, m.i.t. economist. up, alibabag reported strong sales and earnings today showing once again that a slowing chinese economy isn't holding them back. we examine the numbers next. this is bloomberg. ♪ vonnie: live from new york and london, i'm vonnie quinn. this is bloomberg markets. alibaba china's largest operator of internet shopping malls grew its revenue at several times t

and positive for the federal reserve.ier for the fed to achieve the employment inflation targets without worrying about running into the effect of lower bound on interest rates. jonathan: let's talk about something not helpful for the fed, some of the comments on the campaign trail targeted the fed chair, janet yellen. the idea that maybe she would not be removed but certainly wouldn't get a second term. how damaging is that campaign trail rhetoric on the federal reserve from where you are sitting? personally, i felt it was completely appropriate. and we talk all the time about the president and what kind of supreme court justices they will point, and they will free to express views on that. but it is very important for the american public to know what kind of federal reserve chair a new president or candidate for president would appoint. trump was clear about that. on thet agree with him specifics. i think janet yellen is doing a great job. -- but it is good for him to alert the public. david: i want to get back to the m

inflation, something the federal reserve has been searching for, is showing signs of firming. but across america, as we know, there is an economic divide with many feeling uncertain about their economic future. and the upbeat picture we got today may not tell the whole story. >> reporter: call it the data disconnect. consumer price numbers, up. housing starts, up. jobless claims down. now at 43-year lows. they're among the most positive economic reports in decades. those numbers do explain why federal reserve chair janet yellen says an interest rate hike may be imminent. what they don't explain is the unrest president-elect trump successfully mind in last week's election. take consumer prices. up in october by nearly half of 1% from a month earlier, driven by higher gas and electricity costs. housing prices are up too. but food and medical costs are relatively flat. year to year prices are up 1 1/2 percent, the biggest gain in two years, not far from the if he had's 2% target, a number we haven't seen in four years. the fed benchmarks 2% as a sign of growth with a relatively l

the federal reserve were expected to raise rates this past summer, but that changed after the u-s added more jobs in may. fuel economy is at a record high as new technology helps vehicles lose weight and drive more efficiently. the u-s environmental protection agency says the fuel economy of 2015 model-year vehicles increased to 24-point-8 miles per gallon. the e-p-a says wider use of lighter materials like aluminum is lowering the weight of vehicles, which improves fuel ecom a military mishap as a plane in flight accidentally drops its bombs. it happened last week as a national guard aircraft was conducting a training exercise at michigan's camp grayling. luckily - the seven bombs were only for training and did not contain explosives. the national guard says it was likely a mechanical issue that caused them to fall off. "if i had to hazard to guess i'd say probably problems with commercial airlines would be much more frequent than what like this where all of those training ordinances came off of that a-10. so it's pretty darn rare. in the 20 years i've been doing this, i haven't seen a

the federal reserve also leads rates changed. the pounder climbs the most sent august as they ruled the government must hold the vote in parliament before starting the two-year countdown to brexit post-up theresa may still saying she plans to pull the trigger in march. vonnie: the securities and exchange commission is launched an investigation into wells fargo. ae same day, we have bloomberg scoop showing a generation of world executives created a sales culture beneath them. we are 19 minutes into the trading day in the u.s. now julie has been watching the news right now. stocks little changed at the moment. part of that news has been economic data. it has been next to this morning. we had jobless claims. there is no clear direction in terms of the data being positive or negative. we are seeing stocks mixed as well. overall, not seeing much change. i wanted to check on the bond market as well to see if they're sending more direction there. we did hear from the federal reserve yesterday. we are seeing a mixed picture, yield rising

i would not want to destroy the independence of the federal reserve board. i do think we ought to have a cohesive economic policy with at least a chairman of the federal reserve board and the president's terms being the same and congress, of course, being the third entity that was independe independent. >> the chairman of the federal reserve board should be independent. fortunately, he has been during democratic as well as republican administrations. as a result in the last two years we have had a responsible monetary policy. the federal reserve board indicated that the supply of money would be held between 4 to 4.5 and 7 and 7.5. they have done a good job in integrating the money supply with the fiscal policy of the executive and legislative branches of the government. it would be catastrophic if the chairman of the federal reserve board became the tool of the political party that was in power. it's important for our future, economic security that that job be nonpolitical and separate from the executive and the legislative branches. >> mr. president, the re

the election just six days away, and the federal reserve.hough the central bank did not move on interest rates today, it may be setting up to do something in the near future. so let's start with the first issue, the race for the white house. investors are clearly nervous. the s&p 500 fell for the seventh straight day, its longest losing streak in nearly five years. as the narrowing race brings more uncertainty something markets don't like. but given all of the nervousness, a number of wall street firms are out with notes telling clients, essentially, to stay calm. eamon javers is following that part of the story for us tonight from washington. hi, eamon. >> yeah, hi, sue. we have heard a lot, and i mean a lot, from the political pundits so far this year. >> maybe there's another group we should be paying attention to. forget the political pundits. what are the wall street analysts saying about next week's election? goldman sachs issued a report this morning, saying, they still expect hillary clinton to win on tuesday. bulls have tightened go

federal reserve.te today research has documented central banks around the world have been better under control if they enjoy independence from elected officials. the election of donald trump is a good time to remind ourselves historically the executive branch is presented the greatest threat to the independence of the u.s. federal reserve. professor andhe senior director of the organ economic forum at the university of oregon, thank you for joining us. you have been warning about the threats to central bank independence under a trumpet ministration. why in your view does a trump administration present a threat -- independence? >> we have seen trump offered differing opinions on what good monetary policy should be. she has gone back-and-forth to low interest rates are good and bad. , the shell question expected to just follow his lead? joe: do you think investors are looking for the possibility -- bloomberg intelligence had a chart we showed earlier showing there is a 10% chance of rate hikes next year

another reason to move. >> three federal reserve presidents have spoken.do they make of this? >> we have 11 more to come this the president of he now seemsd and to be signaling that the door is open to a december hike and he he is ready. >> i think you will see the move of accommodation and i think you will have to do it in a patient way. >> the world industry projections go to the far right side of the screen and you see the line going straight up and the time around and after the presidential election last week with the high of 94% from earlier. the unitedoted that --tes needs a fiscal booth boost. >> what is coming in? mandateing on the dual and they are taking into account the potential shocks. they said it was too early to react to the specifics of the stimulusthere is more and rate hikes. jeff said it is a faster pace for hikes. interestessitates rates and policy rates. for me, the markets are and it isstimulus likely to mean more rapid rate increases. >> you have the bond market selloff and we will see if it carries through to the rest of the world.

. >> sebastian mallaby discusses the life of former federal reserve chair alan greenspan in his book, "the man who i knew." he's interviewed by alice rivlin, senior fellow of economic studies at the brookings institution, and former vice chair of the federal reserve from 1996-999 -- 1999. >> host: sebastian, welcome. i'm delighted to be to doing this, and i think it's a

matt: the federal reserve reads -- leaves trades unchanged. that is a possible december move. plus, facebook earnings out on a bill today. we will see mark zuckerberg's a public making it first company coming to fruition. hillary clinton beats donald trump with independence in a new bloomberg poll. we dig in how important independence will be in this election. scarlet: as we head toward the close, you have the s&p and the dow and the nasdaq all over right now. 500, this is the seventh straight day of declines. let's go live now to the nasdaq were abigail doolittle has more. abigail: it has been another volatile day for the nasdaq. the index is up ever so slightly this morning. the fact that the low is down 1% closer to the lows right now and similar to the s&p 500 on pace for its seventh decline in a row, the longest losing streak since april 2011. for most of the day, dragging some of the big stocks. report after the close. this is the last of the reports for the earnings season. looking for adjusted earnings on since $1 billion of revenue and bloomberg intelligence analyst s

that is not the job of the federal reserve.o explain why free trade is a value, but it does not lobby for those particular things, and should not. alix: thank you for joining us today. dr. alan greenspan, former federal reserve chairman. jonathan: at the top of the next hour is bloomberg markets. there is a strong correlation, not in markets, but between manchester united and the energy levels of mark barton. what do you have? mark: i am through the roof. it is a rare manchester united win. he is cautious long-term. he says there is not enough growth. then we will talk the fx or mutations after tomorrow. what happens if donald trump wins, what happens if hillary clinton wins. how does the market react? we will go through those permutations. then we will go to brexit, a statement to fellow mps at 10:30 your time. that is in response to last week's high court ruling. the opposition labor party gives their view. then there is a 19 minute debate. we will jump in and out of that. i am bouncing. 3-1. everybody is on form today. jonat

maria: welcome back, a busy week for the federal reserve.l hill today to it have before congress joint economic committee where she will be grilled on economy and election. joining me assistant secretary of treasury niel. >> god -- good to see you, maria. maria: what do you think we are going the see in terms of the conversation? >> i think it's a wide-ranging conversa the economy and interest rates and discussion of financial regulation that's been in the news. i'm hopefully part of the conversation in help to go shape where we are going from regulatory standpoint but everything is on the table. maria: i want to talk about that. yesterday you spoke about the economic club what your plan lays out a blueprint for ending too big to fail banks and you have spoken about this quite a bit. with the new administration we will see an end to too big to fail at this point? >> i hope so. i hope it's not a partisan issue. i heard from congressmen and congresswoman from both sides of the aisle. we've now got a 67% chance today of another financial crisis

go beyond that, the federal reserve is talking about raising rates after the election.lus it gets very nervous. easy money is going away. >> i think that's for more of a factor with the federal reserve. one thing i'm curious about. i know markets don't like uncertainty, but they're almost certain if hillary clinton became president, she'd be facing higher taxes. not much depends on congress, i know. done they actually more prefer split government? and that's what they really like. now that isn't such a slam dunk? >> exactly. they do praefr state government. to your point, we can sit there and talk about taxes. at the end of the day, trump is an unproven candidate. not only people in the united states know that, the marks also know that, also the rest of the world. he's also gone public saying he is going to go after countries that we had trade with, almost 1.7, excuse me, trillion dollars in trade. we've done with china, south korea, j pan, members colorado he said that is his order of business as soon as he takes office. so, of course the markets will go nuts over an u

at that point i would have violated what i told the federal reserve. a passive investor. >> so you couldn't have said anything? >> i'm not saying i would have said something. but absolutely. we had told the federal reserve in june that we would be a passive investor. >> the ceo, john stumpf, someone you've known well for years. >> a very decent man. >> do you feel misled by him? >> i don't feel misled. i feel he made a hell of a mistake and didn't correct it. it's somewhat similar, i don't want to make it too parallel, john goodfriend didn't commit the act at solomon that caused the problem, but he sucked his thumb when he learned about it. and then it mushroomed, as problems do, out of control. and then, being behind the curve, he didn't know what to do exactly. i don't know what happened precisely at wells fargo at all. but the problem was not doing something about it. we have a hotline at berkshire. and thousands of things come in. the guy next to me has bad breath or something like that. it goes to the internal auditor. i want to know anything that

the creation of the federal reserve get this -- the creation of the federal reserve was a historic disaster. [laughter] so talk about inconsistent that was part of the view as you say with the gold starngd you don't need the fed. it became embodiment of the fed that of the currency, so he went all the way to the other extreme. >> even arguing that you didn't need a monetary rule, you had to play it by ear. >> right as. >> a middle ground which was gold, but not just money precincting but a fixed amount of increase in the money every year, and the rule was kind of gold and then it was another discipline. and as you say, alan was determinedded to reject that in favor of discipline. mean favor of discretion his discretion and maybe this hingted at earlier believer in iran, believed in great men, including himself. also unshy and unsure of his views. let's move on to bubble because bubbles are very interesting, -- you write that early on he sought crash as causal in the great depression. and yet by the 1990s, he was not so worried about the stock market bubble that we were, obviously, having at

doe: what does donald trump two or about the federal reserve? or about the federal reserve?he move to rein them in? something a lot of people here in washington are asking about. he could turn to congress for a number of these -- should he look to republican leaders in the senate or in the house for a path forward on those issues on nominees and more broadly on financial policy, you have the chairman of the house financial services committee who has put forward a very aggressive .verhaul of dodd-frank thehe senate, you have senator from idaho who will be taking over the senate banking committee. , he has been pursuing reform -- housing will be another issue that he may tackle. paths in variety of leaders in congress that trump could turn to. wall street did not exactly embrace donald trump, did not fund his campaign all that richly. will he take revenge in any way? elizabeth: that remains unclear as well. he would say things about going after wall street and certainly criticized hillary clinton's ties and support from the financial industry. you look at the makeup of his own

. >> for the base each year are refinanced with imaginary money but the federal reserve. are all sitting in a gigantic disneyland of fake money. >> hard to get presidential candidates to get out the plans with federal spending when no one is feeling the effects of the dead. >> the $20 trillion in debt is just the tip of the iceberg. if we factor in the debt obligations into the future the figures closer to 100. lauren nicole, back to you. nicole: thanks, shannon. the chicago cubs and the cleveland indians. we'll tell you what the final pitching matchup looks like and then take a listen to this has been uptown funk. ♪ against bruno morris over uptown funk. you are watching "fbn:am," your first look at morning markets and breaking news. ♪ seeing is believing, and that's why we're opening more xfinity stores closer to you. visit us today and learn how to get the most out of all your services, like xfinity x1. we'll put the power in your hands, so you can see how x1 is changing the way you experience tv with features like voice remote, making it easier and more fun than ever.

some say donald trump's about to change that by major hauling the federal reserve. federal reserve. others warn that could punisway. especially in my business. with slow internet from the phone company, you can't keep up. you're stuck, watching spinning wheels and progress bars until someone else scoops your story. switch to comcast business. with high-speed internet up to 10 gigabits per second. you wouldn't pick a slow race car. then why settle for slow internet? comcast business. built for speed. built for business. we're opening more xfinity stores closer to you. visit us today and learn how to get the most out of all your services, like xfinity x1. we'll put the power in your hands, so you can see how x1 is changing the way you experience tv with features like voice remote, making it easier and more fun than ever. there's more in store than you imagine. visit an xfinity store today and see for yourself. xfinity, the future of awesome. . >>> i don't have to tell you, savers and pensioners getting killed by the fed interest rate. steve, just look at what savers are getting now. 0

jonathan: the deserve -- a federal reserve meeting in december.erminal, we can bring it up. dots a quick look. each and every dot is the fomc and where they anticipate rates will be pretty red is where marketing was at the last time. the last time this was of data was september. the blue line is where the market is now. traditionally, we were talking about a blue line shifting much, much slower and the green line which is the median shifting towards the market for now the market to worthy said. will the offset of the on hold in december because they do not know -- will be fed be on hold in december because they do not know? paul: what we see in december, the fed of the dots, will not know what the fiscal position is and they will maintain the dots where they are. they know there's upside risk to growth and upside risks to inflation and maybe upside to their own forecast. they will anticipate the market will the team to move toward them. the area where the fed moves toward the market, the election and the impetus is the front end of that. guy: tall

the federal reserve also leads rates changed.limbs the most sent august as they ruled the government must hold the vote in parliament before starting the two-year countdown to brexit post-up theresa may still saying she plans to pull the trigger in march. vonnie: the securities and exchange commission is launched an investigation into wells fargo. the same day, we have

what i really want to do with the federal reserve is control. you have a powerful organization with no self-discipline for and had a big impact i believe on our economic volatility over the years. i think for monetary policy we could go to some kind of rules-based system. there have been a number of proposed rules. that would help markets because the fed would be disciplined. on regulatory side i think dodd-frank has been a disaster for the creation of venture capital. i grew up as small business venture capital lender. it hurt the economic growth, i think in terms of the job creation and vitality that small businesses had and really impacts middle income america. i think we need to get the regulators off the banks and get the fed disciplined. >> the history of our country in the beginning of the 20th century was regulation would be imposed to only cure the most recent problem. the fed is an example of that. it was implemented in 1913 to correct the panics that we had in the economy. dodd-frank is a good example of that. sarbanes-oxley is a good