the federal reserve what are your thoughts on not. i've been for audit for many years and i've been i've been writing about the federal reserve for many years i've been teaching as a law professor for more than twenty years and in two thousand and eleven in the aftermath of the financial crisis. as a result of a lot of the things that i was publishing on the fed i was appointed by senator bernie sanders to a special advisory committee on reforming the federal reserve and it was an interesting experience you had some very noteworthy economists like joseph stiglitz and robert rajesh and james galbraith on this committee. this advisory committee and we came out with some suggestions and one big suggestion was to change the governance of the federal reserve to make it more accountable and less in the hands of the private bankers that essentially own the regional federal reserve banks so the governance of the fed itself is problematic but i've been focusing a lot on not just the governance but the actual policies of the fed you know the fe

are you expecting much from the federal reserve on tuesday?nk it is much from the federal reserve on tuesday? no, ithink it is too much from the federal reserve on tuesday? no, i think it is too soon foran tuesday? no, i think it is too soon for an increase. i think what people will be looking for is what they will be looking for is what they will say, the kind of tone they will give to the market. the problem that the federal reserve has is the $4.5 trillion balance sheet, they need to find a way to drain some of that cash from the global economy. how they would do that is really up to they would do that is really up to the federal reserve. warren buffett once said he would be very interested to see how they could drain this cash without causing market disruptions. we know it has been distorting the market and housing prices. it would be interesting to see amazon results, they are making a huge push into markets like china. can they make much of a dent when you have got hugely established competitors such as aliba ba ? hugely established comp

i hope that the federal reserve is taking some recommendations seriously. have you read the report yet or are you aware of it >> yes, i have read the report and there are many very useful and productive suggestions that mirror things you have been thinking and doing ourselves with respect to tillerian the rate -- we are always looking for ways to reduce the burdens that are very useful there are a few points where we have a different view, but a lot in it that is very useful. >> i look forward to working with you on that while our branch of the government is a check on the executive branch and agencies, we want to work with you to try to improve the ability of our banks to be able to do the job of helping our communities grow. i've worked with the committee in the past. my district has been caught in purgatory for the last five years. the agency has blocked the merger and acquisition and is concerned over certain products, the same products that have been encouraged by the fdic and the state of missouri's finance. your staff has forced this bank through the

and the federal reserve. under the leadership of our ranking member, mr. waters, and wrecking members -- ranking members john conyers and myself and others, we were hopeful that, for the first time in history, american history, the federal reserve would appoint and higher the very first african-american ever to hold the position as a regional president of the fed. and you did that. we want to say thank you. so much. we deeply appreciate that. that means a lot. not just to the african-american community but to all americans. that is what this great country is about. let me go to one other thing. let me talk. you and i have had ongoing's about high and employment rate of african-americans. i always remember fondly when you referred to that as a blunt instrument. said to james bond to describe them. in other words, you could not go through it. you said that congress had to come up with legislation. we did that. house resolution 51 and 52 of which we sent a copy to you, which would get african-americans unemployment rate young men in the inner-city to apprenti

jim: pressed for it when she was president of the san francisco federal reserve bank. this number is tacked up on the wall as if it were handed down from on high. 1965, there was not one year in which the rate of inflation reached 2%. 70 basis points. .7%. so now days that would be the grounds for kinds of a panic, right? deflation, 1930s. so what is it that changed? for one thing we are more encumbered more debt. they think we need inflation to help us pay our debts. but we never say that. it's the intellectual dishonesty of this monetary policy that most rankles me. maria: we are out of the throes of the recession, the financial upset of almost 10 years ago. but the economy is not doing all that great. look at gdp. 1.5% on average. tax receipts down. do you think there is a risk things slow down as the fed accelerates this? >> yes, i think there is a big risk. janet yellen in her testimony this past week and the document the fed issued in june having to do with their plans for the normalization of the balance sheet. in every over case janet yellen issued a p.s. we'll

maria: the federal reserve raising interest rates for the third time last month. wall street had been expecting at least one more rate increase this year. we are expecting that to happen in september. but earlier this year federal reserve chairman janet yellen said the fed is ready to scale back on its rate increase if inflation is soft. why is this so important to janet yellen. and when i asked you during the commercial break, we are not sure. jim: pressed for it when she was president of the san francisco federal reserve bank. this number is tacked up on the wall as if it were handed down from on high. 1965, there was not one year in which the rate of inflation reached 2%. 70 basis points. .7%. so now days that would be the grounds for kinds of a panic, right? deflation, 1930s. so what is it that changed? for one thing we are more encumbered more debt. they think we need inflation to help us pay our debts. but we never say that. it's the intellectual dishonesty of this monetary policy that most rankles me. maria: we are out of the throes of the recession, the fi

right now we'll go back to this morning's hearing with federal reserve chair janet yellin appearing for a second day on capitol hill. as she speaks to the senate banking committee about the country's economy. >> promoting economic growth remains a top priority for this committee and congress. i've been encouraged to see federal agencies and stakeholders evaluating current laws and regulations. since the last humphries hawkins hearing in february, there have been numerous developments that will impact economic growth legislation. senator brown and i have solicited the public for economic growth proposals and more than 100 submissions from stakeholders have come in. they are listed on the committee's website for those who may be interested and we're working together now to put together legislation dealing with it. the committee has held numerous hearings focused on economic growth with financial companies and regulators. federal financial regulators issued their second report and the treasury department issued it first report on core principles of financial regulation. in addition, member

i hope that the federal reserve is taking some recommendations seriously. have you read the report yet, aware of it? ms. yellen: yes, i have read the report and there are many very useful and productive suggestions that mirror things that we've been thinking and oing ourselves with respect to tailering of our regulations, reducing burdens on community banks. i think the recommendations pertaining to volcker rule and ways -- looking for ways to reduce burdens are all very useful. there are a few points where we have a different view. a lot in it is very useful. mr. luetkemeyer: i look forward working with you on that. while our branch of the government sacheck on the executive branch and agencies, we want to work with you to try and improve the ability of our banks to be able to do the job of helping their communities grow. i'm glad you mentioned community banks because i have a quick story for you. i'd like your response. with regard to mid america bank and trust. small bank in my district that's been caught in regulatory purgatory for the last five years.

chairman yellen: well, we are on excess interest reserves as our key tool for rateng the federal funds so that is a key instrument of monetary policy. i said is that we on adjustments through interest rate -- on reserves through our fed funds rate target as a means of regulating. rep. hensarling: my time is rapidly winding down, perhaps not in a question but request. i was heartened to see in your report a comparison of fed policy with a number of policy rules. helpful,his is very chair yellen. that in somehough, respects, your report says how from theseffered policy rules but it did not say why. broadestto give the amount of information to the markets so that people can plan would simplyi encourage you to perhaps even go discuss not how, but why the actual fomc policy differed from policy rules. i think that would be very encouraging if you would have a comment on that. chairman yellen: let me just say i'm very pleased that the onmittee found the material rules useful and we look forward you to provide further information that would committee.o the rep. hensarling: i now recognize the

wages, but the greater equity in terms of how those areas of growth might be shared. >> so the federal reserve and particularly the reserve banks around the country play an important role in doing research on community development and try to understand and publicize what kinds of strategies seem to work. of course, we play a role in the community reinvestment act, which financial institutions are looking to ways for effective ways of promoting development. a number of banks have looked specifically at older industrial cities and tried to study. and we have volumes that have been published on this, the boston fed, in particular, has been very active in trying to understand what strategies have been effective in older industrial cities in regenerating activity and dealing with these problems. of course, they're complex but there are workforce development programs and collaborations between governments, local governments, state governments, nonprofits, businesses that have been singled out as ones that appeared to be promising. but, of course, these are very difficult issues. and congress and pol

>> well, we are reliant on interest on excess reserves as our key tool for setting the federal funds rate. so that is a key instrument of monetary policy. but what i said is that we intend to rely on adjustments through interest on reserves, to the funds rate target as a means of regulating -- >> my time is rapidly winding down. perhaps not in a question, but in a request. i was very heartened to see in your report a comparison of fed policy with a number of policy rules. i think this is very helpful, chair yellen. i would say in some respects your report says how how the fomc differed from these policy rules, but did not say why. in order to give the broadest amount of information to the markets so that people can plan their lives, i would simply encourage you to perhaps even go further and discuss how -- not how, but why the fomc differs from these policy rules. i think that would be very encouraging if you would have a brief comment on that. >> so let me just say i'm very pleased that you -- the committee found the material on rules useful, and we look forward to working with you t

tonight federal reserve chair janet yellen completes her second day of testimony on capitol hill we'll see how markets reacted to her views on the state of inflation and the fed's beige book is out my guess danielle de martino boost says it's the poorest showing in a long time and she tells us why she thinks so and it's a perfect storm in canada the governor of the bank of canada says the economy is walking a tight rope so proceed with caution stand by the bus start right now. before the senate banking committee today federal reserve chair janet yellen said she believes the risks concerning inflation are two sided stressing that price gains could both accelerate and slowdown that's appears to be an effort to adjust the views in financial markets yesterday in her comments before the house financial services committee yellen discussed the possibility that a recent slowdown in inflation could persist longer than the fed expects that triggered a big market rally with the dow jones industrial average hitting a record high investors saw the remarks as a signal that the fed which has raised i

system and vice chairman for supervision of the board of governors of the federal reserve system. welcome to both of you. >> thank you. >> and congratulations you to on your nominations to the important offices. i see that you have friends and family sitting with you. i welcome them here today as well. these two positions are critically important to ensuring a safe, sound, and vibrant financial system. we're fortunate to have two highly qualified individuals to consider for these posts. mr. otting bringing a particular expertise and understanding of our banking sfrim a long career in financial services. as head of the occ mr. otting would oversee supervision of all national bank ands federal savings associations as well as federal branches and agencies of foreign banks. having served in the lead areship positions at various institutions in the past, i'm confident that mr. otting will bring strong leadership to the occ. mr. quarrels has a wealth of government and private sector experience as well dealing with both domestic and international financial markets. he is no stranger to

all eyes are on the states where the federal reserve meet. and full steam ahead.e'll be talking to one of europe's largest online train ticket retailers which is trying to break into some of asia's biggest markets. bland and boring, today we want to know, what's the best named town you've ever visited. just use the hashtag bbcbizlive. hello and welcome to business live. in just under an hour, the uk will unveil its latest growth numbers for the three months to the end ofjune. earlier this week the international monetary fund warned that weaker economic activity means both the us and uk will expand more slowly than expected this year. however, in the numbers due out this morning, economists are expecting the uk's growth rate will have risen slightly in the last three months to 0.3%. it was 0.2% in the first quarter. following the brexit vote, the pound fell. this put pressure on prices and last month inflation stayed above the bank of england's 2% target rate. and higher prices — partly from imported goods — are having an impact on consumer spending. now according

chair yellen: the federal reserve and him particularly the reserve banks around the country play an important role in doing research on communities development. andtry to understand publicize what kinds of strategies seem to work. of course, we play a role in the community reinvestment act, which financial institutions are looking to waive for effective ways of promoting of element. haveber of reserved banks looked specifically at older industrial cities. and try to study. we have volumes that have been published on this, the boston fed in particular has been very active in trying to understand what strategy have been effective in older industrial activity regenerating in dealing with these problems. of course, they are complex. they are workforce development programs and collaborations between governments, local governments, state governments, , thatfits, businesses have been singled out as ones that appear to be promising. of course, these are difficult issues and congress and policymakers at the fed may have a role. ours is mainly research and trying to disseminate findings we have. >> i a

rate three and waiting in the balance is not just traitors americans are also waiting for the federal reserve's next move and the health care debacle american lawmakers continue to debate on the floor with little success stand by it all starts on boom bust right now. it's all about signaling strong economies today first in the czech republic where the central bank is hiking interest rates for the first time in more than nine years as you can see here the last time rates went up was at the beginning of two thousand and eight and rates have been near zero at point zero five percent since two thousand and twelve the czech economy is on pace to grow about three percent this year unemployment rates are among the lowest in europe and wages are going up houses in prague are flying off the market in a matter of weeks often times with multiple bidders which means housing prices are also rising check national bank is pointing to the third quarter of this year is being a prime time to hike rates but not everyone is convinced it would be the first rate hike in europe in about five years and some investors

with the federal reserve tightening, the next step the ecb tightening. they unclear next step for the boe. the only front we have is over in asia, the bank of japan, for the most part right now. that said, whether a central bank is supporting or detracting from risk demand in a given market, it's defined by whether they are tightening faster or slower than what is priced in and what is priced in right now for most central bank action is a relative pace of tightening. if we do get tightening that is not priced in, it closes a modest problem for risk assets. i doubt it is a huge one. the issues for height yields are about valuations or ties to the equity markets rather than bank policy. jonathan: everyone seems to be confused about this policy. stick around with us. get you up to speed on the markets this week. what a week it has been. yield hide by a margin of three basis points, the big move further down the curve, 13 basis points higher. as we get back up to 2.82 on the 30 year treasury. the final spread on the week ahead, the first meetings of the pres

the federal reserve has announced news on interest rates. >> janet yellen says stay where you are on the interest rates at the moment. the fed decided to keep them unchanged. it is going to stay in the 1.1.25 percent range. the economy is going with solid job gains but inflation has declined and price trends would need to be monitored carefully. let's bring our financial soothsayer. no press conference. the fed did make a statement. how do you read it? >> we had two small but important changes. if we look at interest rates, earlier in may, the federal reserve was saying inflation is running below 2%. now they are saying it is running below 2%. they are not using the phrase somewhat. they are not really satisfied with how inflation runs in that mean -- mamay mean the door is open to only one more interest rate, possibly in d december. that is what markets are betting on now. we heard earlier the federal reserve was saying later this year the they will wind down the balance sheet. now they are saying relatively soon. that could start soon, possibly at the next fed meeting in september.

speaking of raising rates the federal reserve just announced it will not raise rates right now in a statement wednesday we learned the fed is leaving its benchmark interest rate between one and one point two five percent the announcement does not come as a surprise inflation has been weaker than originally expected though the fed believes it will rebound in the near future what investors were looking for in this statement was a more precise timeline on when the fed wants to start downsizing its bond portfolio which will apparently happen relatively soon the fed currently has a four point five trillion dollars balance sheet in treasuries and bonds it bought up after the financial crisis the dollar dropped on the announcement while gold rebound. after sliding most of wednesday waiting for news from the feds well to dig deeper into this announcement and what it will mean for growth i'm joined now by peter schiff c.e.o. of euro pacific capital peter thanks for joining us today look the fed just released its plan for the next few months and there was of course some things that many people are pred

and wages, but greater equity in term of how those areas of growth might be shared >> so the federal reserve, and particularly the reserve banks around the country play an important role in doing research on community development and try to understand and publicize what kinds of strategies seem to work of course, we play a role in the community reinvestment act, which financial institutions are lacking to ways for effective ways of promoting development an a number of reserve banks have looked specifically at older industrial cities and tried to study and we have volumes that have been published on this. the boston fed, in particular, has been very active in trying to understand what strategies have been effective in older industrial cities in regenerating activity and in dealing with these problems. and of course, they're complex, but there are workforce development programs and collaborations between governments, local governments, state governments, nonprofits, businesses, that have been singled out, as ones that appear to be promising. but, of course, these are very difficult issues and

this federal reserve, well, you could teach a whole class on the federal reserve, right. but in short, one of the country's wealthiest fitnenanci in history, jp morgan, designed the federal reserve. the federal reserve prints our money. a mostly private bank. it prints the money or actually nowadays what it does is digitizes money creation more often than printing and then loans out the money, usually at 1% or 2% interest, where the interest rate is right now, to leading banks, goldman sachs, jpmorgan, to bank of america, all those banks and then they lend it out at a higher rate of interest, making a profit, to people like you or businesses, more often than not, use the new money that's created by the federal reserve and lend it to henl funds to wall street speculator and stock markets and equities and futures and derivatives. and so it's a very important institution. a cornerstone of the current day banking system. a cornerstone of the currency. that's why if you look closely at a $1 bill, it doesn't say u.s. treasury note on the top, does it? it says federal reserve no

and housing finance reform have important implications for the federal reserve's. and the us economy and financial stability. i would not presume to judge these reform proposals but offer principles of reform. and these principles are based on the lessons learned from the old system's collapse and experience a postcrisis banking reform. we have to do whatever we can to make the possibility of bailouts seem as remote as possible. housing could be a volatile sector at the heart of financial crisis. housing can be a volatile sector, housing is often found at the heart of financial crises. housing financial institutions were not structured with that in mind. extreme fluctuations and credit availability for housing heard vulnerable households to reduce affordability and availability and as we have seen can threaten financial stability. as with banks, the goal should be to ensure housing finance system continues to function in the face of significant declines and severe economic conditions. changing the system to attract large amounts of private capital would be a major

this federal reserve, well we could teach a whole class on the federal reserve. in short, one of the country's wealthiest financiers, jp morgan, just prior to his death, designed the federal reserve. the federal reserve pushed through congress. it prints are money. a mostly private bank. it prints the money. nowadays what it does is it digitizes money creation more often than printing. it loans out the money, usually at 1% or 2% interest to leading banks, to goldman sachs, to jp morgan, to bank of america. then they landed out at a higher rate of interest, making profit from the dishes -- the difference, from people like you. more often than not, they will lend it to hedge funds, to speculators, to equities and futures and derivatives. it is a very important institution. a cornerstone of the current day banking system. a cornerstone of the currency. if you look at a one dollar bill, it doesn't say u.s. treasury note on the top. it says federal reserve note. same if you look at a five dollar bill, or a $10 bill, or a $20 bill. look at that. there he is. wow, there

. >>> the federal reserve chair was back on capitol hill. this time, in front f f a senate committee testifying on the economy. today, janet yellen was pressed on how to increase economic growth, now, recall that growth target set by the current administration, she told lawmakers it would be a challenge to reach. >> and the economy that is grown over the last number of years by about 2%. per year. and 2% has been sufficient to create a very large number of jobs and a tighter labor market. of course, it's good to have more jobs and a tighter labor market, but the fact that that could be accomplished with 2% economic growth points to what is very disappointing namely, the potential of the u.s. economy. is very low. >> and she added that achieving 3% growth would require broad changes. such as tax reform and an improved education system which would add to labor productivity. >> the fed chair also said it was premature to conclude inflation would continue to fall below the fed's 2% target. today, we learned producer prices rose slightly last mon

coming up, former federal reserve chairman alan greenspan my special guest. here are some of the headlines. a week of big swings as the markets end the month, the square and the first half of the year. for the week all three indices found themselves in the red. apple marking the tenth anniversary of the iphone but it was not a good week for apple stocks or the technology stocks in general. the dow and s & p were both in the green, but the technology sell-off left the nasdaq down. disagreements over details in the healthcare reform bill, including the taxes in the law. the trump administration did have a big victory. the supreme court allowing much of the administration's six-nation travel ban to go into effect thursday night. it went into effect with no issues. it will hear the case in october. martin shkreli was known for hiking the price on an hiv drug by 5,000 percent. one juror said he would only be i am partial on deciding which prison shkreli should go to. wall street watching lots of things this week. battles on capitol hill and even the president's tw

powell is a member of the federal reserve board of governors. he said today that congress needs to change house and preventpolicy to another bailout like the one in 2008. here are some of his remarks from today at the american enterprise institute. >> good morning, everyone. a resident scholar here and also the codirector of our housing center. welcome to this event this morning on housing finance will feature remarks from jay powell. we're delighted to have jay with us this morning. let me give a very brief thenduction for jay and he'll come up for his remarks. feds been a governor at the since may of 2012. some of what jay does as a very visible to the public, serving on the federal and givingittee regular talks on the economy, monetary policy and financial stability. but as i know from my own days fed, a lot of what jay and other governors do is behind the scenes and is not very public, including all the administrative work of the federal reserve board and overseeing the federal reserve system, which is a big board is fullyhe staffed. but, of

the federal reserve catching investor attention. fed polly makers were torn over inflation and how it will affect future interest rate increase. there was a debate on whether the fed should increase the securities. volvo says good-bye to the internal combustion engine. starting in 2019 all volvo models will be hybrid or solely powered by battery. that news contribute to a steep sell-off in tesla stock. it's down 20% from its highs. president trump stopped in poland before leading to hamburg, germany. the focus was on the president's first in-person meeting with russian president vladimir putin. the event has been. marthabeen been marredby anti-c. the president respond to north korea's test of an intercouldn't nentd alba his particular missile. >> i don't like to talk about what i have planned. but i have some severe things we are thinking about. i think we'll take a look at what happens over the coming weeks and months with respect to north korea. it's a shame that they are behaving this way. but they are behaving in a very, very da

you mentioned the federal reserve.ow do you gauge the way balance sheet policy is going to roll out if they do announce in september? have you got any idea from september and beyond and december and beyond what the reinvestment policies of the fed will look like going forward? marilyn: it's obviously going to be very measured as is a huge amount of volatility that will need to be readjusted. it will have an impact on quantitative tightening. it will have an impact on credit markets overall. but when you look at it, it still has a huge balance sheet that will take time to reduce the size of that. also, when you look abroad, when you look lovely, still on the other hand, you have the bank of japan bubbling up assets. you have the ecb buying up assets. so i think while the federal reserve will look to reduce the size of its balance overall, you will still globally be seen huge amounts of buys by central banks. jonathan: what you think about the shape of the yield curve and where the market positioning is, aggressively sho

. >> a member of the federal reserve board, jay powell says changes to be made to the housing finance policy in order to prevent another bailout like in 2008. he spoke of the american enterprise institute for about an hour. >> good morning, everyone. i'm steve owner, resident scholar here at aei and also codirect their hunger center. welcome to this event this morning unhealthy finance reform, which will feature remarks from federal reserve governor, jay powell. we are delighted to have jay with us this morning. let me give a very brief introduction for jay and then he will come up for his remarks. jay has been a governor at the fed since may 2012. some of what jay does that they governor is serving on the federal market committee and getting regular talks on the economy, monetary policy and financial stability. but if they know from my own base of the site, a lot of what jay and others think of is behind the scenes and it's not a visible to the public, including all the administrator work of the federal reserve board in overseeing the federal reserve system, which is a big job even w