it was the federal reserve bank of new york and federal employees, as well. it's easier for me to say but they were not complying with two at they were say not complying with because the gap to do is so big. it's very difficult to find things they were doing right. it's an embarrassment of what they were doing wrong. >> could you give us an example? >> yes, one of the examples i talk about early on in the book is when i was sitting down with the federal reserve bank of america employees whose stoop pass on knowledge and the anti- money laundering program is simply, is that the employees are supposed to follow to patch anybody, customer, that is trying to use the banks to launder money, and other words to make dirty money clean. talking to me as i sat there and took on this information from the new york employee is how this particularly employee was telling me at the same time they're doing all of these things that are wrong and they're not just doing the wrong in the us but doing the wrong in all sorts around the world and at the same time was trying to convi

that's a tough position for the federal reserve.ll might be put in a bad position by the trump administration and their policies because they have to boost growth, cap inflation and make sure people are still happy in the markets. it's a tough position to be in. neil: couldn't you argue the opposite that this is a $300 billion plus. auto parts, and auto tracks, that could slow the economy which would slow the pace and the rate of increases. >> this is all so much speculation. and that's a possibility for us. one thing to keep in mind because we are much more focused on what it would do the stock market. autos or 4.5% of the s&p 500. they are tiny. neil: that is the prison you look at. and the economy that's a big part. >> a small part of the overall. [inaudible] >> or expect you to lose 5% this year and only make 1% more next year. they are not what is driving the overall u.s. economy. we are less concerned. >> this main concern is the strong dollar as well. the highest in a year two big trading countries like china, and that has a

tried to develop out of in the american banking system with $2 trillion of domestic deposits the federal reserve federal deposit account system grabs half of them, why not? that is $6 trillion to expand then at $10 trillion. so remember if you have deposits on one side you have something else on the other so what would the fed do with this mountain of deposit it would have to make investments in loans and would become overwhelming credit allocator of the american financial system we can cease the project that would be highly politicized and that taxpayers would be on the hook for credit losses the risk is directly in the central bank as opposed to somebody else. i think to have a central bank digital currency is one of the worst financial ideas of recent times but still it is quite conceivable to think of it as a possibility. in conclusion look at the money of the future of the digitalization will continue i don't think that fundamental nature will change and surely be the monopoly she went of the central bank. it could be a private currency backed by reliable assets that don't think it will be

for the federal reserve system. after leavine ing the federal reserve bank, he consulted for payments canada, a proof of concept for a wholesale interbank payment system. he received his ph.d from cornell. dr. norbert michelle, the director at the center for data analysis at the heritage foundation, where he studies and writes about financial markets, cryptocurrencies, and monetary policies. before rejoining heritage in 2013, michelle was a tenured professor at nicholas state university's college of business, teaching finance, economics, and statistics. dr. michelle holds a doctoral degree in financial economics from the university of new orleans. dr. aswar is the senior professor of trade policy and professor of economics at cornell university. he is also a senior fellow at the brookings institution, where he holds the new century chair in international trade in economics and a research associate at the national bureau of economic research. he is a former head of the imf's china division. his extensive publication

there is a federal reserve. this is a very, very small minority view. central banks have been around developed economies for hundreds of years. not so long in the u.s. the fed is over 100 years and quite young compared to some european banks. it is widely recognized from absolutely crucial functions in the economy. first of all, it helps regulate the flow of credit. if there is not that regulation, the economy, during good times can overheat as we were talking about. sometimes the flow of credit is too little and very difficult for the economy to climb out of without someone adjusting the knob. they serve as a financial regulator. a job it did not do very well. they have worked pretty hard to better keep an eye on these big banks. the fed is what we call the lender of last resort. before there was a federal reserve we had a history of banking crisis in the united states and it was more frequent. banks in these periods get into trouble. not because they are sitting on bad debt but they lose deposits and liquidity. even though they are in a good situation

i remember when the federal reserve fund broke the buck in 2008. remember where i was when that occurred and the massive backstop the u.s. taxpayers provided to restart the entire rket as a result of this and other factors. the fact is that the value of the underlying assets of the products nuct wait. they go up and down. as i said in opposition to the bill at the time if we learned anything from the financial crisis, it should be that the price should reflect risk. while understanding this is the primary jurisdiction of the s.e.c., and chairman clayton has already expressed his concerns, i was hoping as a member of the fsoc and as someone uniquely positioned to comment on macro financial stability that you could comment on any concerns ith this potential move. >> i share your concerns. this was one of many critical weaknesses identified in our financial system in the crisis. we worked hard to address it. i think successfully. to some extent. i'd not like to see that undone. mr. royce: i'm out of time, thank you very much. >> the chair recognizes t

for the federal reserve system. after leading the federal reserve bank, he consulted for payments can do and r3 on project jasper, a proof of concept for a wholesale interbank payment system. mr. garratt received his phd from cornell. dr. norbert michel, of the heritage foundation, where he studies and writes about financial markets, cryptocurrency and financial policy. before rejoining heritage, michel was a tenured professor at nicholls state university's college of business, teaching finance, economics and statistics. he has a doctoral degree in economics from the university of new orleans. is professor of economics at cornell university, also a senior fellow at the brookings institution, where he holds the new century chair in international trade and economics, and a research associate at the national bureau of economic research. he's a former head of the imf's china division. his extensive publication record includes top academic journals. he has co-authored an edited numerous books on financial regulation and

the federal reserve has not gone through neutral yet, yet we are having a conversation about the federaleserve perhaps having to stop next year. why? krishna: this is a new world. that is fascinating. the fed was trying desperately to get real rates up, and the markets want no part of it. and i think the structural issues that we saw because from a cyclical standpoint, things are quite good, but the structural issues we want to sweep under the carpet. they are not going away. and i think this is going to be with us for a long period of time. real rates are not rising meaningfully. if they rise meaningfully, we will have a recession. and the fed does not want that at all. jonathan: ira, is it a new world? ira: it absolutely is a new world. one of the things we have to ask ourselves is are we at neutral? you suggested maybe we are not at neutral yet. in the fed's funds rate, maybe we are. there is no way to actually -- you know, there are tons of different estimates, right? my estimate for the real rate might be 3%. so two more hikes, we are there. that is not saying very much. but other p

federal reserve, his message on rates and currencies. playing nice with vladimir putin, president trump intensifies the uproar over his meeting with the russian president by extending an invitation for a second summit. can democrats take the house? we will hear from a democratic candidate in a key district. ♪ kevin: -- shery: twets and more -- tweets and more terror threats, accusing of currency manipulation before taking a swipe at the federal reserve interest rate hike after the president already threatened to impose tariffs on all of chinese imports. two sorted out is our business week economic editor. i have lived in several consuls -- countries before coming to the u.s. so it is not unusual for government to meddle in monetary policy but huge in the u.s., breaking two decades of traditions. what are the ramifications? >> a risk it could backfire on donald trump and the reason the president refrain from criticizing the federal reserve, the more they convince everybody the federal reserve will go easy and keep rates low, more markets

federal reserve chairman jay powell returns to capitol hill to talk about the economy. he's got a positive analysis after telling lawmakers years of strong growth in jobs and inflation ahead. a lawsuit filed by mgm resort against shooting victims during outbreaks from survivors and everybody else. u.s. stock index futures looking at a mix on the indexes. the dow up 17, s&p 500 up over one. the nasdaq down two and a quarter. you are watching "fbn:am." ♪ it's single-origin kenyan coffee from the nyeri highlands, 6,000 feet above sea level. but how do you really know that the beans journeyed to the port of mombasa and across the pacific? that you can trust they're 100% authentic? ibm blockchain. a smart way to track every step, ensuring this coffee did indeed come from 6,000 feet above sea level. and not a foot lower. ♪ ♪ too hot to work? nah. this is the gator xuv835. with game-changing heat and air, it's never too anything for anything. where we're changing withs? contemporary make-overs. then, use the ultimate power handshake, the upper hander with a double palm grab. w

federal reserve having to top next year.hy? krishna: this is a new world. the fed was trying desperately to get real rates up and the markets want no part of it. and i the structural issues we want to sweep under the carpet. they are not going away. i think this is going to be with us for a long time, real rates are not rising meaningfully. if they rise meaningfully, we will have a recession. they do not want that at all. jon: is in a new world? ira: it absolutely is a new world. one of the things we have to ask ourselves is maybe we are not at neutral yet, maybe we are. there is no way to actually -- there are tons of different estimates, my estimate for the real rate might be 3%. two more hikes, we are there. that is not saying very much. but, other people might think it is 2%. which would mean they have already reached neutral and will be tightening. you look at things like the yield curve. one of the reasons term premium is so low is because we are nearing the real rate being met by the front end. as we do that, if the f

president donald trump has found a new target for criticism of the federal reserve that we're just mentioning mr trump aired his grievances on thursday in an interview with c.n.n. b.b.c. take a listen i've got a very good man in the fed i don't necessarily agree with it be cause he's raising interest rates i'm not saying that i agree with it and i don't know that i said you know i don't. i'm not thrilled because you know we go up and every time you go up they want to raise rates again and i don't really i am not happy about it but at the same time i'm letting them do what they feel is best. and despite that nod to the fed's independence at the end of mr trump's comments there today he criticized the fed again on twitter complaining that quote the us is raising rates while the dollar gets stronger and stronger with each passing day taking away our big competitive advantage the fed is slowly raised the rate since late two thousand and fifteen higher interest rates tend to support a stronger dollar which makes u.s. exports relatively less affordable abroad mr trump's critics were upset by him an

jon: if you think the federal reserve gets to a point where they need to slow down, what stops first?alance sheet or rate hikes? unwind, balance sheets because reserve problems. with all of these things they have created with new regulation, i do not think they have a pretty good idea of how reserves are being used and they are at a loss to explain. methodology toe understand, what should be the appropriate level of the balance sheet? how do you know? are we just putting our finger in the sky, what is it meant to be? realistically, the only way you can know the balance sheet is one reserve demand picks up. what happens is there is this interest on excess reserves and that was set at the upper bound of the range that the fed is trying to set the fed funds , right aftering they'd started to unwind the balance sheet, you started seeing the actual traded fed funds rate creep higher and higher, and because of that, they said this is a reserve problem. thinkot think it is, i there are other factors, but this is why others are talking about stopping the unwind. jon: ira jersey, great to have

president to makes a direct or tries to influence the federal reserve yes the u.s. president nominates or the president of the federal reserve but that's about it other than that the fed is completely independent from the u.s. government so highly usual those remarks from donald trump that he says he's really not thrilled the fed is working right now usual remarks were kind of used to that from trump so far but it looks like investors are taking what he's saying seriously . we certainly did see an impact after those remarks we saw the dollar losing some ground the same was true for the yield soft u.s. treasuries so many old saw stocks got a little bit of a dent purse preciously if you look banking stocks for banks in general it's good news of interest rates are increasing they borel short and they lend long and saw on the long and interest rates are not increasing as much as projected to be bad for a u.s. financial institution so we did see some losses over there but overall if you talk to most economists they believe they're the new head of the federal reserve jero

if you think the federal reserve gets to a point where they need to slow down, what stops first? the balance sheet unwind or rate hikes? krishna: oh, the balance sheet unwind, in my judgment, will stop first, because that is something they are already talking about to some extent. because of reserve problems or something like that. with all of these things they have created with new regulations, i do not think they have a pretty good idea of how reserves are being used and they are at a loss to explain the current situation. jonathan: what is the methodology to understand what should be the appropriate level of the balance sheet? how do you do the math on that? how do you know? are we just putting our finger in the sky, 2.5 trillion dollars, $3 trillion, what is it meant to be? ira: realistically, the only way you can know the balance sheet is when reserve demand picks up. this is why there have been discussions about that. what happens is there is this interest on excess reserves and that was set at the upper bound of the range that the fed is trying to set the fed funds rate. b

well know they've had ten years of being subsidized by the federal reserve by the policies that have allowed them to mass a lot of extra capital the quantitative easing policies that even though they have tapered off still have amassed a multi-trillion dollar book of assets from the banks to the fed over the last ten years and as a result they've been able to buy their own stock with the blessing of the fed pay dividends to shareholders to buy their own stock and to invest in complex securities and activities that enable them to extract high fees from their businesses which in turn produce bigger profits for the u.s. sort of nutty i want to get into some of the details a little bit yes for your help in trying to explain some of it earlier in the week a federal reserve chair jay powell took some heat on the senate side at least from some democrats elizabeth warren idea some others and shared brown the ranking democrat on the committee for rolling back the so-called stress test and on these supplemental leverage ratio and i know those seem like they may be complicated for folks but the

president nominates the president of the federal reserve.t is completely independent from the u.s. governments were highly unusual. >> unusual remarks but we are kind of used to that from trump so far. it looks like investors are taking what he says that since it. -- seriously. >> we did see an impact. the same was true for the yields of u.s. treasuries and also, stocks got a little bit of a damper. especially, the banking stocks. in general, it is good news if interest rates are increasing. own and interest rates are not in creasing as much. we did see overall, if you talked to most economists, they believe that the head of the federal reserve one not be influenced by the u.s. president donald trump and will continue doing what he believes to be right. that is a opinion of most economists. >> thank you very much for. >> formal rivals quickly becoming good neighbors. anchor: we're talking about the peace process between ethiopia and the arab trail. one of africa's biggest carriers. they are in talks about a state in airlines. today after com

the president is setting things up to blame the federal reserve. ,> i think the federal reserve it isndependent, it has an inflation target. i think inflation is around where it needs to be. the labor market is incredibly tight. i think the fed and chairman powell have laid out a steady path. it is hard to see him moving away from that trajectory of rate rising. maybe there is the argument that the labor market is not incredibly tight. maybe they will have to slay down to see the results of their efforts come through. heady see the tension between the fed and the administration playing out at the back end of the year? >> they're not the first of ministration to blame the fed and the pushback on the fed. it is normal politics to me. the fed has a job to do, and they are going to do it. jonathan: the consensus view from everyone i have talked to is we are going to have a fantastic q2, and things will get worse through 2019 and 2020. that just makes sense. does it make sense to you in the treasury market? >> the flacco is already priced in. i think the risk of inflation coming. of the ma

taking on the head of the federal reserve, the head of the federal reserve that he appointed.s next. how do you win at business? stay at laquinta. where we're changing with contemporary make-overs. then, use the ultimate power handshake, the upper hander with a double palm grab. who has the upper hand now? start winning today. book now at lq.com. mitzi: psoriatic arthritis tries to get in my way? watch me. ( ♪ ) mike: i've tried lots of things for my joint pain. now? watch me. ( ♪ ) joni: think i'd give up showing these guys how it's done? please. real people with active psoriatic arthritis are changing the way they fight it. they're moving forward with cosentyx. it's a different kind of targeted biologic. it's proven to help people find less joint pain and clearer skin. don't use if you are allergic to cosentyx. before starting cosentyx you should be checked for tuberculosis. an increased risk of infections and lowered ability to fight them may occur. tell your doctor if you have an infection or symptoms of an infection. or if you have received a vaccine, or plan to. if you h

relaxing regulation in the financial sector and even things like stress tests conducted by the federal reserve which are meant to guard against another government big bank bailout here discusses the former banker herself she's also the author of collusion how central bankers rid the world nomi prins know me thank you for being with us again we sure appreciate it the big banks have never made more money than right now does that surprise you. well now they've had ten years of being subsidized by the federal reserve by the policies that have allowed them to mass a lot of extra capital the quantitative easing policies that even though they have tapered off still have amassed a multi-trillion dollar book of assets from the banks to the fed over the last ten years and as a result they've been able to buy their own stock with the blessing of the fed pay dividends to shareholders to also buy their own stock and to invest in complex securities and activities that enable them to extract high fees from their businesses which in turn produce bigger profits for the. u.s. sort of nutty i want to get into so

jonathan: the federal reserve pushes back against higher interest rates.oes it change anything for chair powell? bob: it doesn't. the fact that you have tweets today and yesterday tells you how independent the fed is. i think it is a complex question. certainly, the president gets to appoint who they want as the fed chair, so they pick someone who is reasonable and moderate like jay powell. they know kind of what they are going to get. i think it was a good appointment, but he is on his own now. and i think he has laid out a very credible path going forward. jonathan: it's safe to say that the president's tweets this friday have had more impact than what is happening with jay powell in congress. what is happening with the treasury curve? it has been flat and then all of a sudden we get steepness during the week. bob: there are a couple things going on. certainly there is a belief the fed is going to stick to its rate path, that we will see increases every other meeting for now. great set of words, but i think also there has been some news out of japan that

economy in the future so it is rather likely that even with the trade war going on that the federal reserve is going to continue to increase rates in the next couple of months we'll see what happens in just a few hours thank you very much scott in new york for the analysis. and while the u.s. distances itself from trade partners at least in other parts of the world countries want to cooperate more closely has reopened the final stretch of a whale way running from the capital phnom penh to the border with neighboring thailand the two countries say the rail link is vital to bilateral trade. a train from cambodia's northern border with thailand arrives in phnom penh it's the first one in forty five years much of cambodia's rail network was damaged during the country's civil war including this forty eight kilometer stretch near the border town of port pitt the reopened track represents nearly eighty percent of cambodia's total railways a little over six hundred kilometers in all the rest of the link to phnom penh had long been suspended due to the poor condition of the track in two thousand and

the payment of interest on balances held by banks in their accounts at the federal reserve has played a key role in carrying out these policies. as the current monetary policy report explains in some detail. payment of interest on these balances is our principal tool for keeping the federal funds rate in the fomc's target range. this tool has made it possible for us to gradually return interest rates to a more normal level without disrupting financial markets and the economy. as i mentioned, after many years of running below target, our longer-run objective of 2% inflation has moved close to that level. and our challenge will be to keep it there. many factors affect inflation, some temporary, others longer lasting. inflation will at times be above 2%, other times below. we say the 2% objective is symmetric, because the fomc would be concerned if inflation were running persistently above or below that 2% objective. the unemployment rate is low and expected to fall further. american who is want jobs have a good chance of finding them. moreover, wages are growing a little faster than the

that the federal reserve should slow down?ob: well, he -- this is the most pro-growth administration anyone can remember since the reagan administration. so he wants ample liquidity and low-cost funding. so he is going to argue for that. but it does tell you that he is focused on growth, growth, growth. jonathan: i'm going to put you on the spot. do you agree with him? bob: no, i don't. i think the fed is leaning into the curve for real now. the last two and a half years, they have been trying to get to normal. we are going to see gdp print in the next couple of weeks with a four handle on it. and we've got inflation, core p.c.e. is 2%. wage gains or 2.7. headline cpi, 2.9. that is well above the 2% target. jonathan: thank you to bob and lisa. great to catch up with you. coming up on the program, we will stick right here at jpmorgan asset management hq. joining us around the table i am pleased to say will be diana amoa to talk emerging markets. that conversation up next. this is "bloomberg real yield." ♪ jonathan: i'm jonathan

secretary, what happened to respecting the independence of the federal reserve? >> i think they do and we as an administration absolutely support the independence of the fed and the president made it clear is their decision. these are just comments thing as interest rates going up, it's something that the president has a concern.but he absolutely respects the independence of the fed.the market expects interest rates to keep going up, the only question is how far and for how long we think the fed will be very careful in managing the economy. >>chris: in fact, isn't it responsible as the economy heats up. when we've had these artificially low interest rates when the economy was chugging along at 1-2 percent. isn't it responsible for the fed to increase interest rates? >> i think it is in the market expects it. it's been targeting two percent inflation and with two percent inflation, we have to have slightly higher interest rates to manage through that. >>chris: i want to ask you about another potential drag on the economy and that is the drop in some tech stocks. f

do you think the president has a point that the federal reserve should slowdown? bob: this is the most pro-growth administration anyone can remember since the reagan administration. he wants ample liquidity and low-cost funding. he will argue for that. it does tell you that he is focused on growth, growth, growth. jonathan: do you agree with him? bob: no, i don't. the fed is leaning into it for real. they have been trying to get to normal. we will see gdp print with a handle on it and we have inflation, core pce is 2%. cpi is 2.9. that is above the 2% margin. jonathan: thank you to bob and lisa. coming up, we stay at jp morgan asset management and joining us will be diana amoa to talk emerging markets. that is coming up next. this is "bloomberg real yield." ♪ jonathan: i'm jonathan ferro. this is "bloomberg real yield," live from jp morgan asset management. over to china we go, where chinese markets ended on a stronger footing. central banks moved to weaken daily currency fixing, the most since 2016. joining me to discuss china and emerging markets is a diana amoa

i brought the federal reserve supervision and examination previously from federal reserve governor since that economic crisis doing those fine according to the feds of 2017 annual report so with these insurance companies in the district thousands of people and one of them just announced they are closing the depository institution. i understand there are business reasons having them close their own depository institution there is little doubt one of those factors they are closing is due to the growth of the inefficient supervisory regime by the federal reserve i have worked with my colleagues on the other side of the aisle to introduce legislation to force the federal reserve to tailor their banks regulations to the insurance company that are different from banks and although there should be a cost of admission for an insurance company to own a depository institution it shouldn't be so high that it doesn't make financial sense to own one which is where i think we are headed. do you think this problem is that they close their banks or this is part of the reason or the federal reserve's des

i brought the federal reserve supervision and examination previously from federal reserve governor since that economic crisis doing those fine according to the feds of 2017 annual report so with these insurance companies in the district thousands of people and one of them just announced they are closing the depository institution. i understand there are business reasons having them close their own depository institution there is little doubt one of those factors they are closing is due to the growth of the inefficient supervisory regime by the federal reserve i have worked with my colleagues on the other side of the aisle to introduce legislation to force the federal reserve to tailor their banks regulations to the insurance company that are different from banks and although there should be a cost of admission for an insurance company to own a depository institution it shouldn't be so high that it doesn't make financial sense to own one which is where i think we are headed. do you think this problem is that they close their banks or this is part of the reason or the federal reserve's des

. >> i think the federal reserve, has its job.t is independent, it has an inflation target. i think inflation is around where it needs to be. the growth rate is very strong. the labor market is incredibly tight. i think the fed and chairman powell have certainly laid out a steady path of rate rises. it is going to be hard to see him moving away from that trajectory of rate rising. jonathan: the administration might make the argument that the labor market is not incredibly tight. they might make the argument that they need to slow down to see the results of their efforts come through. how do you see the tension between the fed and the administration playing out at the back end of the year? >> they're not the first of ministration to blame the fed and to push back on the fed. it is normal politics to me. as marilyn said, the fed has a job to do, and they are going to do it. jonathan: the consensus view from everyone i have talked to throughout the week and the last several months is we are going to have a fantastic q2, and things wi

president donald trump has found a new target for criticism the federal reserve that we're just mentioning mr trump aired his grievances on thursday in an interview with c.n.n. b.b.c. take a listen i've put a very good man in the fed i don't necessarily agree with it be cause he's raising interest rates i'm not saying that i agree with it and i don't know if they're going to agree to that i must tell you i don't. i'm not thrilled because you know we go up and every time you go up they want to raise rates again and i don't really i am not happy about it but at the same time i'm letting them do what they feel is best. and despite that nod to the fed's independence at the end of mr trump's comments there today he criticized the fed again on twitter complaining that quote the us is raising rates while the dollar gets stronger and stronger with each passing day taking away our big competitive advantage the fed is slowly raised to rate since late two thousand and fifteen higher interest rates tend to support a stronger dollar which makes u.s. exports relatively less affordable abroad mr trump's

the bank of canada keeping pace with the federal reserve. behindsibility they fall is relatively small. amanda: let's imagine that we were not looking at a trade war. expansionng at the policy group will be the risk? >> the risk is substantial. --ada goes into reception recession. other major economies go into recession as well. onlyis unavoidable result driven by trade policy mistakes. >> in the event there isn't a trade war, what else could happen? to capacity.lose what would derail it? >> further fiscal stimulus would probably prompt faster moves from the fed adding gasoline to a hot fire. those are the big policy person -- mistakes that loom. amanda: good to have you here with this. sticking with the tariffs and trade story, the world's two largest economies slipping into a trade conflict causing waves in the global economy. a ship carrying soybeans steaming to northern china and a race to beat a tariff. the ship is inspected to arrive tomorrow, the same day they will impose tariffs on imports. according to shipping data if it arrives as

randy kroszner is a former federal reserve board governor serving under george w. bush from 2006 to 2009 he is currently a professor of economics at the university of chicago. booth school of business randy great to speak with you. >> great to be here. >> i understand that most fed watchers believe that the president's comments would not have any impact whatsoever on the fed's course but should we be concerned that the perception of the fed could change, that the prism through which we evaluate any fed actions from now on would be tainted? and that therefore would then distort markets. >> certainly one wants to be concerned about that but i think as steve was saying and taking the quotations from j. powell. he has made it clear that he wants to chart an independent path he has said i will stay in my lane you stay in yours he has gone at -- been at pains to make clear what's mine and what's thine the president i think very clearly said that he may not be happy, but he is letting them do what they think is best. and he reiterated his broad support for j. powell as ch

audience member: do you gentlemen reserve the federal reserve as a center of power that should be reined in? mr. ryan: i'm a big believer. -- mlb believer in fixed rules. i do believe in independence of the fed. i do believe in auditing. i do believe in having clear books, and i do believe we should have a standard, a fixed rule that we govern the federal reserve on. ,nd the humphrey hawkins law first of all it puts into the fed statute the bogus phillips curve. jonah: bingo. [laughter] you are scratching my it. ryan: the fed should have an explicit rule and govern itself by that and that should be made clear. fiat moneys off of and gets us on a fixed standard, where we know exactly where our money is, and we can't have debasement by the federal reserve that takes away our livelihoods. but, but, but, but, the last thing i want to do is get politicians involved meddling with interest rates and the federal reserve. so you want to make sure you keep this thing away from interference and meddling. and this is not a vladimir putin statement, away from political influence and meddling and have

the payment of interest on balance buybacks in their accounts at the federal reserve played a key role in carrying out these policies. thecurrent monetary policy report explains . interest on these balances are cool tool for getting the federal funds rate in fluency target range. these tools have made it possible for us to gradually return interest rate to a more normal level without disrupting financials. as i mentioned after many years of running below target our long-run objective of two percent has recently moved close to that level and our challenge will be there. manufacturers inflation, some of them are temporary and others longer-lasting. inflation will be times about two percent at other times below. we see that is because the fluency would be concerned inflation were running on or below two percent. the unemployment rate is low and expected to fall further americans want job good chance of finding them. moreover, wages are going faster than it did a few years ago . that said, they're still not rising as fast as in theyears for the crisis . one explanation could be productivit

federal reserve system. after leaving he consulted for our three a proof of concepts for a wholesale interbank system. dr. norbert michelle who is the director for data analysis at the heritage foundation where he studies and writes about that. michelle was a tenure professor. teaching finance, economics and statistics. with the trade policy. with the international trade and economics. he is a former head of the china division. the numerous collective volumes as well. and on china and india. the senior fellow. welcome back to the committee providing thought and policy. previously he was president and ceo. they received the masters in philosophy. from princeton university. with the oral presentation of the testimony. it will remain part of the record. you are not recognized for five minutes. you can just push the button there to turn on your mic. the convenience of electronic transfers has led to a decline worldwide for the use of cash. where they were transferring commercial bank deposits. they had been adop

marilyn: well, i think the federal reserve has its job.ndependent, it has its growth target, unemployment rate inflation target. , i think inflation is around where it needs to be. the growth rate is very strong. the labor market is incredibly tight and so i think the fed and chairman powell have certainly laid out a very, very steady path of rate rises. and i think from all the speeches he has said, it will be hard to see him moving away from that trajectory of rate rising. jonathan: jack, the administration might make the argument that the labor market is not incredibly tight because they don't have the wage growth yet. they might make the argument that the fed needs to slow down to actually see the results of their efforts come through and not to kit it off too early. how do you see that tension between the fed and this administration playing out in the back end of this year? jack: well, they're not the first administration to blame the fed and to push back on the fed, so this is kind of normal politics to me. as marilyn said, the fed h

wednesday the federal reserve making its decision on monetary policy.hursday it's the bank of england's term. ofroll data for the month july, who so august coming? are we going to get a height from the bank of england? >> it's pretty much priced in by the market anyway. we will serve to see a hike. one inflation is still above target, economic data growth we think is stabilizing. the labor market is still pretty tight in the u.k.. we saw that shift in that direction in the last decision on masala 63 vote. we could definitely see a hike. >> the bank of england has been criticized around the communication of interest rate hikes. have the communicated this one better? >> they have done as much as they can. they are in a difficult spot with brexit and a range of things that are happening within the u.k. economy but also the politics as well. they are in a difficult spot. they've been criticized in terms of communication but as much as they can do they have been pretty on message with this. ,> it is a nonsensical argument the idea that you hike massie you ca

and to confirm the federal reserve governors that the president has long since nominated. they would have lost approximately 30% of the purchasing power by the time the first tuition bill arrives. if so maybe congress should decide this because the federal reserve act mandates quote stable prices and unless i look up the word stable in the dictionary it means that, quote unquote, not changing the permit and yet we see even some advocating a policy rate target that allows for even greater swings than the current 2% inflation. we welcome you and look forward to hearing more about these issues and to a prudent path to normalization with the interest rates are once again market-based and credit is allocated to the most efficient use and i now recognize the ranking member of the committee from california for three minutes for an opening statement. thank you mr. chairman. i'm very concerned about the impact of the reckless policy of donald trump on hard-working americans. multiple families in the nation's economy. this president start a trade war that is already harming american

and he made it clear to joe he doesn't like the federal reserve raising rates, particularly when he'seconomy you will get all the details, we'll play that full interview when "squawk box" starts at the top. we have a lineup of people to react to it, everyone from senator heidi heitkamp and federal reserve former officials. we'll talk about it all mornin long on "squawk box. >> just the two clich clips we'n so far have gotten me so enamored we'll see what else happens when we tune in live at 6:00 a.m. eastern. thank you for those details. >>> on deck here on "worldwide exchange," we have geopolitics, earnings, economic data. what are the most important drivers for the maets rkright now? we'll ask tim seymour coming up next man: are unpredictable crohn's symptoms following you everywhere? it's time to take back control with stelara®. for adults with moderately to severely active crohn's disease, stelara® works differently. studies showed relief and remission with dosing every 8 weeks. woman: stelara® may lower the ability of your immune system to fight infections and may increase your r