my main subject will be the profound financial transformation since the global economic crisis federal reserve in monitoring and addressing federal stability. today marges publiclycation of board of governors first ever financial stability report. earlier this month we published our first supervision and regulation report. together these reports contain a wealth of information on our approach to financial stability and to financial regulation more broadly. by clearly and transparently explaining our policies we aim to strengthen the foundation of democratic legitimacy that enables the fed to serve the american people. congress has assigned the federal reserve the job of promoting maximum employment and price stability and i'm pleased to say that our economy is now close to both of though objectives. the unemployment rate is 3.7% a 49-year low and other measure of labor market strength are or at another bests. inflation near 2% target. economy growing at 3% well above estimates of its longer run trend. for seven years during the crisis and its painful aftermath fomc kept the interest rate unpre

some of the statutes that are currently in place and can be used to hold the federal reserve and the mployee reserves and goldman sachs employees accountable have not run out. it's something that the trial lawyers could choose to enforce as well and what is the appetite for the enforcement? you have the american people waiting for something to be done, tired of watching haphazard slaps on the wrist. one of the things i talk about in the book is what happens when the judge gets to find their case you still work with the lawyer in the federal reserve and they represent goldman sachs. this is what happens. she discovers with respect to her husband and 24 or 48 hours later, something like that dismisses the case. three quick comments and then a question. somebody once said we get the government that we deserve. so i mostly get involved and vote with the right questions there was a time when people used to go to jail for white collar crime. it would've been to so many people's lives. >> that the statute of limitations. is there anybody out there running on this issue that you think could g

david: when you were a young boy, did you say i want to be chairman of the federal reserve board? you were called the maestro. alan: i always got too much of the credit. i was writing speeches in the bathtub. david: were you surprised at the criticism? alan: nobody forecast the 2008 crisis. david: do you see movement to solve the deficit and debt problem? alan: i see a lot of talk, but no realistic movement. >> would you fix your tie, please? david: well, people wouldn't recognize me if my tie was fixed, but ok. just leave it this way. alright. ♪ david: i don't consider myself a journalist. and nobody else would consider myself a journalist. i began to take on the life of being an interviewer even though i have a day job of running a private equity firm. how do you define leadership? what is it that makes somebody tick? a person once famously said conventional wisdom is almost always wrong. now, conventional wisdom is the u.s. economy is very strong. i think your view is that might not be accurate? is that correct, it is not that strong? alan: i think it is a different form of sta

>> former federal reserve examiner discusses the close relationship between the new york federal reserve and the banks they regulate. after that the putative prize-winning historian discusses his new book on the founding fathers and coming up later tonight after words mac with nebraska senator ben sasse. >>> i'm pleased to introduce carmen segarra and an attorney in private practice and cofounder of apron and hair. she attended harvard university, columbia university and cornell law school and has worked at citigroup. when carmen segarra took a job at the federal reserve bank of new york she believed she would be monitoring the big banks behavior in order to avoid another financial crisis. instead, she encountered a federal reserve and affecting and holding the banks accountable and began secretly recording her meetings. recordings became the basis of the american life episode. she chronicles her experience exposing the relationship between the big banks and set up to regulate them. william cohen author of money and power came to rule the world and writes a noncompliant whistleblower car

federal reserve. about three the federal reserve. you work at a bank which is really important. stability and security and trust in reality, i am here here to tell you, a legal made. $10 an hour, you know, i want more than that her our. i went to law school and did that. i think that it was great preparation. just great preparation. walking into the federal reserve had made it clear. there was a mess that needed to be clean. attending booty untreated meetings we had goldman sachs executive. representing and double seeking their way through meetings. also we think my colleagues at the federal reserve had been there for a very long time. trying to suppress evidence in a systematic way and expunge it from the record. this is serious. this is evidence that can be used i other regulators use by my colleagues. use even by the federal reserve to hold admin goldman sachs accountable. how likely is it that you will be able to be effective in fixing it. this was a mess beyond my ability to fix. also the on the ability of my colleagues. i think it was the ability to fix. in charge of super

i think the federal reserve is going to be hiking rates.he economic picture, broadly speaking, supports that and when you have low unemployment, you have inflation above target, of -- above potential gdp growth, wages that are not only rising but at an increasing pace, that is a clear signal. and clear, clear, clear signal that they need to be hiking. jonathan: would you say the that that came into the front end up the back of those comments? james: that is something we have been looking at this afternoon. we have some positions on that have benefited and potentially things we can do, taking chips off the table. a look at -- i would look at headlines for the euro-dollar, which was trading at nearly 3.30 a couple of weeks ago. 3.09, and that is around 1.5 hikes for 2019. it has a constant spread. i think the risks are aggressive in the other direction and that is what i will be looking at. jonathan: kathleen? kathleen: i think that you are seeing jerome powell be quite a swashbuckler. i would not really describe a central banker in ways like

think the market is taking this is a federal reserve a slowdown the pace of rate hikes.did you take it as? >> i'm going to be opposing that, to be honest. first and foremost we will be talking about a broader commitment than just one single member which takes up an important position in the federal reserve system. i'm certainly still looking for jerome powell and i have a different interpretation to the upper market from his recent speech where, of course, he mentioned global headwind but i think he's been very clear is the chairman of the federal reserve. he is not going to be buffeted around by these short-term. he sees risks on either side. of course from an economic perspective, there are risks of going too far, and you possibly would know about those risks sooner than the other risks. the other risk is the one that concerns me more, given where we have been for the last 10 to 12 years. if you go to banks fully, you allow imbalances to build up and that creates a problem that you don't see coming. i think jerome powell is on the right path and the federal reserve is

alan greenspan to a four-year term as chairman of the federal reserve.n: i just wanted to say that i am deeply grateful to the president for this opportunity to serve my country in one of its most sensitive economic posts. david: so you graduate summa cum laude from nyu, given up your music career. what did you do when you graduated? alan: well, first of all, i went to the national industrial conference board. for the first time, i went into the business world. i wasn't really all that interested in it. and found myself fascinated. at a fairly young age, like 22, i was writing articles for the conference board magazine. and i was fascinated by it. i was getting quoted in the new york times. david: ok. alan: those were the days. david: ok, so the new york times is quoting you in your 20's. you ultimately became a well-known consultant on wall street. and on the side, you become close to or get to know a very famous writer named ayn rand. and what was the appeal of her to you? alan: what fascinated me was her heroes. when i read her books, "fountainhead" a

alan greenspan to a four-year term as chairman of the federal reserve.lan: i just wanted to say that i am deeply grateful to the president for this opportunity to serve my country in one of its most sensitive economic posts. david: so you graduate summa cum laude from nyu, given up your music career. what did you do when you graduated? alan: well, first of all, i went to the national industrial conference board. for the first time, i went into the business world. i wasn't really all that interested in it. and found myself fascinated. at a fairly young age, like 22, i was writing articles for the conference board magazine. and i was fascinated by it. i was getting quoted in the new york times. david: ok. alan: those were the days. david: ok, so the new york times is quoting you in your 20's. you ultimately became a well-known consultant on wall street. and on the side, you become close to or get to know a very famous writer named ayn rand. and what was the appeal of her to you? alan: what fascinated me was her heroes. when i read her books, "fountainhead"

allen greenspan as chairman of the federal reserve.nt to say i am grateful to the president for this opportunity to serve my country in one of its most sensitive economic posts. nyu,: you graduate from given up your music career. what did you do when you graduated? i wentor the first time into the business world. i wasn't all that interested in it. i found myself fascinated. age, like 22,ung i was writing articles for the conference board magazine. . was fascinated i was getting quoted in the new york times. david: ok. the new york times is quoting you in your 20's. you ultimately became a well-known consultant on wall street. on the side, you get to know a --ous writer named iran rand. what was her appeal to you? alan: her heroes. , i wasread her books caught up in that science thing which basically said you can have anything rational about human emotions. aboutan argument uncertainty with ayn rand when i met her. i kept saying human values are irrational. they are not conceptually put together. she then proceeded to take me apart pie

blame the federal reserve for the market selling off. the president thinks so. >> i think tech stocks have some problems but that will come back. but no, i think we're going to do very well. i'd like to see the fed with a lower interest rate. i think the rate's too high. i think we have much more of a fed problem than we have a problem with anyone else. >> the selloff in stocks has been largely about worries over economic growth slowing down. i sat down with federal reserve bank of dallas president, robert kaplan. i asked him about the rate hike timing, the economic cycle right now, and why he's worried about growth coming down. >> the reason i think growth may well slow, the fiscal stimulus is helping us this year and we have been expecting that some of that effect will fade in '19 and '20. that's to be expected. and underneath the economy, gdp is made up of growth in the work force and growth in productivity and work force growth has been solid, but we think it's going to start to be challenged, because of aging. we're pulling more peo

♪ david: when you were a young boy, did you say i want to be chairman of the federal reserve board?u were called the maestro. alan: i always got too much of the credit. david: -- alan: i was writing speeches in the bathtub. david: were you surprised at the criticism? alan: nobody forecast the 2008 crisis. david: did you have any movement for fixing the debt problem? alan: a lot of talk. >> would you fix your tie, please? david: well, people wouldn't recognize me if my tie was fixed, but ok. just leave it this way. alright. ♪ david: i don't consider myself a journalist. and nobody else would consider myself a journalist. i began to take on the life of being an interviewer even though i have a day job of running a private equity firm. how do you define leadership? what is it that makes somebody tick? a person once famously said conventional wisdom is almost always wrong. now, conventional wisdom is the u.s. economy is very strong. i think your view is that might not be accurate? is that correct, it is not that strong? alan: i think it is a different form of stagflation. it has some of

if you look at what the federal reserve is doing, they are over the shock to 2019.y could meet the market just a couple of individuals shifting lower. the median dot is a little bit of a distraction for the confusion of the fed from a 2019 bring. gershon: i think that is right. there are more dispersions that means we should have volatility in the markets. whether we agree or not with the bull steepening happening today, we will move a lot but people really are not sure. i think i know what the fed should do. if i was the fed, i would be on a higher rate today. jonathan: kathleen? kathleen: they will go higher. that is what i know for certain. forget the other noise. it is a waste of time. it is a guessing game. they have to move higher, that's where they're going. you will get selloffs, this will be a great buying opportunity for a long time. jonathan: it is great to catch up with you all. gershon distenfeld, kathleen gaffney and james athey. the market through the week. two-year yields coming in big-time over the last week. likewise for the 10-year. the 30 year wi

i i think there is sentiment in the federal reserve to simplify the volcker rule. so could you give me a comment on that? i don't think we want to go back to the days when you had huge, risky trading floors with inadequate capital, and we know where that went. .. speak market participants that have affected liquidity in the markets and that is true and reasonable people can differ about the extent of that. i think there is universal agreement that the role as it currently exists is to come get it from the point of view of supervisory enforcement from the point of compliance and i think it is totally sensible for that matter as does paul have a much simpler approach to implement in both letter and spirit of the focal rule provision in the dodd frank act. i think that's eminently doable because there is universal agreement on that the five relevant agencies are working together to process the comments that we have received in response of proposal put out earlier this year so i expect that process will come to a successful conclusion. >> in that when you announced the

and also within days with my colleagues at the federal reserve who had been there for a very longen time were trying to suppress evidence in a systematic way and expunge that from the record. this is serious and evidence rsat could be used by other regulators, my colleagues or by the federal reserve to hold those facts accountable which is their job. i didn't have to try very hard i just had to sit to watch and ttake notes but of course, it was the issue that you can be effective to fix it so it became evident over a couple of months this is a mess and beyond my ability to fix or my colleagues that have joined as well from the outside. within a coupleou of months setting up a parallel team of regulators that were side-by-side supervising like this system was replicated in each one. so at first we were sure that they were given the time and the space that they needed and i was sympathetic but it became very clear that we were not going anywhere and that snowballed into other things so that i thought they were leaving and then they were not y so taking notes watching your colleague to try

not tariffs, not china, but the federal reserve.ell, it is true to a certain degree that if you see highest -- higher interest rates, if you have a higher rate it will become more expensive to pay for this debt that could, not stop, but slow down the u.s. economy. so, the president is not entirely wrong on that. but the big question is why the federal reserve is increasing interest rates. and one of the main reasons are the tax cuts we have seen here in the united states, thatat dos lead to a certain overheating of the u.s. economy, that does lead to inflation tendencies. and that is the reason the federal reserve has no other choice but to keep increasing rates. but overall, yes, higher interest rates could be a dragger for u.s. growth. so now that jerome powell sounded a little less aggressive, we saw quite a reaction here on wall street. blue chips are up by more than 400 points. christoph: jens korte in new york, thank you. the british government says that leaving the european union with no deal would cause the economy to shrink

economy seems to be in good shape what does this assessment mean for the federal reserve's intention to further raise interest rates. it still seems pretty likely that we see the fourth interest rate increase and at the last meeting in december it would be the ninth of interest rate increase since december of twenty fifteen but then and that's the important thing a fed chairman. mentioned that looking at next year the course is not set but that they have been in the federal reserve will watch closely at the data meaning how the financial markets are doing how the economy is doing so that sounds a bit less aggressive than what we've heard recently from the federal reserve and yet before jerome paul was able to give a speech and before the fed issued its report president trump yet again attacked the fed and its policy why does he keep doing that. well again and again the president is saying that the policy of the federal reserve is the biggest threat to the economy not cherubs not china but the federal reserve well it is true to a certain degree that if you see higher interest rates es

the one area where the federal reserve saw a transfer of authorities was in consumer protection which had frequently been neglected not just at the fed but across federal banking regulators. recorders created a new agency tasked with doing that, the cfpb, but in charge a series of forceful single independent agency heads, one former head is sitting in the room now. under this administration the president's chief budget officer has been placed in charge of that. taking a muchbout sharper course correction than any of the other regulators. >> course correction or is it getting off of the road? >> one could say -- it's a good question. let me ask you did. follow up on that. you've seen these before. you used the term reach for your wallet which is for shorthand for of consumers ought to be afraid. holistically speaking, is there a connection in financial stability perspective between the new white house led cfpb's perspective on consumer regulation and what's going on in terms of fine-tuning and celebrating bank capital standards? years in making this really wonky. it is not a wonky subj

federal reserve chair drawn palls. interest rates could rise at a slower pace at the same time the fed announces that some u.s. corporate debt has reached what it calls risky levels also the british government on the bills its estimates of the cost of drugs it doesn't look pretty a heart breaks it could shrink the u.k. economy by almost ten percent the bank of england also says a disorderly divorce would be catastrophic also coming up in delhi children learn how to run their own bank to protect tomos street kids from thieves and too big to slaughter winemakers escape becoming a tasty part of australia thriving beef industry. i'm krista of corporate good to have you with us the u.s. federal reserve a sounding the alarm it says historically high corporate debt and trade tensions are threatening the financial stability of the u.s. financial system and could cause asset prices to plummet and his first report on the stability of the u.s. financial system the fed acknowledges that regulation brought in after the two thousand

a lot of people think the federal reserve moves interest rates up and down they do not. the market moves interest rates up and down the only thing the fed can do is change overnight lending rates between themselves and federal reserve banks right this minute it's fair to say they control short rates short rate but made it medium medium to long as they have the market exactly or even hundred eighty day were commercial paper thirty days they don't control that the market does however if the banks that are borrowing at zero can lend at twenty five basis points or fifty or one hundred they make a lot of money which then they can loan out that gets businesses going and you can create growth artificially the problem is that it leads to well investment does away with you have corporations it's a banks that are technically insolvent if they can continue life by borrowing from the fed is zero or less than zero in the case j.p. morgan they were borrowing at less than zero they were being paid by the fed to borrow money that's right so he's exactly right so say what deutsche bank s

>> neil: and the worry with the federal reserve as well. jeff flock. ed lawrence on how this whole g.m. drama is playing into this. he joins us in washington. all right. we should have him shortly. i want to get the fallout from this. this was unexpected, folks. we had a feeling that the federal reserve might be a tad more accommodating. now the fed is saying we're nearly neutral. we have dan here with us. we have charlie gasparino. daniel looking at this, what changed in six weeks? >> apparently we've gone from being worlds apart from neutral to just under. that is when markets really took off because they priced in exactly one more rate hike come december 19 and that's it. they're considering 2019 to be in complete pause mode and stocks took off. he mentioned that stocks themselves were not overvalued. he spoke about the obscure as most investors are concerned and the fact that there's this overevaluation. but markets looked passed that and focused on the fed is going to pause. powell is kowtowing to the president. >> neil: and optics are one thing.

regulatory authority was expended significant, and the one area with the federal reserve saw a transfer of authority was in consumer protection, which have regally been suggested across federal banking regulators and congress created a new agency tasked with doing that, and put in charge a series of forceful and independent agency heads, and one former head is sitting in the room right now. under this administration, the president's chief budget officer has been placed in charge of that, and has gone about taking a much sharper course correction then i think any of their bank? >> is it a correction or veering off of the road? >> it is a good question. let me ask you. you have seen these crises before and use the term for reach for the wallet and said that coomer should be afraid. holistically speaking, is there a connection in financial stability perspective between the new white house led perspective on consumer regulation, and what is going on in terms of fine-tuning and calibrating other capital? >> it is not a bad subject especially when you have a crisis. he is going to h