and in 2006 they gave the bank reserves power to the federal reserve board now the fomc. it is the policy that is supposed to vote on monetary policy but is now fully controlled so over time you can see arguments the reserve banks and you can see the debate continuing on. >> with the open market policy issues almost no defense comes from the members of the board. so then as they are willing to dissent the board will not and that is a healthy thing. and we talk about glass-steagall and the act but the independence of the fed. what would glass think of a president who wants to name kayden and more? actually he had his own dirty hands in this. he wanted the fed to be independent with the currency and so he leaned on and used with the different war bonds so then a bunch of presidents have leaned so the idea that he is way off the reservation or to be more exaggerated but it isn't some holy institution immune. >> please raise your hand wait for the microphone. >> once upon a time i use to write about these policies that talk about cost and benefits that with glass-steagall we k

well there have been comments from james bullard's and he is the head of the federal reserve from san louis and he actually said that history has shown that it's not a good idea or if you get directed by politics out of washington that actually could worsen the economic situation and could pump up inflation in the long run he also said that it's basically impossible and also not a good idea to react to those day to day comments so that we get about trade policies still and the statement from the federal reserve is pretty clear at this point i'm so far markets at least expect one more rate cut possibly in the said 10 member but overall the federal reserve does not seem to really react to the trade tensions and to currency tensions at this point but we've also heard from some ghosts from the federal reserve's past. well fed chair seemed to have a long and healthy life and there was an open letter in the wall street to join the phone from 4 former fed chairman paul full care he actually was of the fed chair under jimmy carter and one of the dragon then old soul alan greenspan byrne berna

the boston federal reserve president and city reserve president both thought the federal reserve fund rate needs to stay exactly where it was. in the end federal reserve chairman jerome powell says it was nothing but in the u.s. economy domestically that called for a rate cut. do your point that you made this afternoon, the federal reserve said in light of implications of global developments, they making the rate cut. that would include other central banks around the world adding stimulus to their economies. the fed chairman also saying that weakness in manufacturing and business investment goes back to the perception that tariffs are bad for the economy. he adds that it will not be a long period of rate cuts as you said, but also not one and done he clarified. listen.>> you do that if you saw real economic weakness and you thought the federal funds rate needed to be cut a lot. it is not what we are saying and not what we are seeing. we are seeing that it is appropriate to adjust policy, to a somewhat more accommodated stance over time and it is how we are looking at it. >> one point

there were two decenters, boston federal reserve president, and kansas city federal reserve president, they thought that fed fed funds rate needs to stay where it was. in end federal reserve chairman powell said it was nothing within u.s. economy domestically that called for a rate cut. to your point this afternoon, federal reserve say the in light of implication of global development, they are making the rate cut, that would include other central banks in the world siding stimulus to their economy. fed to chairman saying that weakness in manufacturing and business investment goes to perception that tariffs are bad for the economy. he adds it will not be a be a lg period of rate cuts but also not one and done. >> do that if you saw real economic weakness and you thought that federal fund rate needs to be cut a lot. that is not what we're seeing, we're seeing it is appropriate to adjust policy to a somewhat more accommodative stance overtime. reporter: at one point powell seemed to take credit for the economic expansion, keeping that going, he said that the fed or as fed moves to more

what the federal reserve did is they took the rates down. it will be cheaper for companies and individuals to borrow money going forward. host: is this only affecting people who are wanting to buy a house and mortgage rates? does it affect any other area? guest: yes, a lot of different people. auto loans if you're looking for a car. if you're borrowing money to start a business. credit cardholders. they should go down a little. credit card rates have been a record highs lately so you were getting a little bit of relief but not like this is going to hugely help someone who has been struggling to pay all their bills. host: what reason did the for chero -- the fed chair give for the rate cut now? guest: mainly the trade war. that is making other parts of the world skittish and impacting the united states. one thing the chairman stressed is in amanufacturing technical recession. output is shrinking. business investment is going down. basically businesses have been spooked by the trade war. the spending has totally dried up. the big concern is th

the federal reserve can make it record-setting. the question is being asked why are we paying much more in interest in germany and certain other countries? the president also considered cutting payroll taxes. the payroll tax funds for social security and government projection shows the trust fund will run out in 2035, the overall federal fiscal situation is also troubling, the congressional budget office projects the u.s. will add nearly a trillion dollars to the national debt this year and more than a trillion each year for the next decade, remarkably high shortfalls for a growing economy. "the wall street journal" has another suggestion saying the president can eliminate import tariffs and cut his trade uncertainty tax, this is a pall over business investment is a major result of his trade policies. they point to slowing manufacturing, exports, and private investment. if the president contends he's addressing a long-term challenge. >> i am the chosen one, somebody had to do it so i'm taking on china. >> the white house said china

what i think is that it's a big mistake for the federal reserve to believe that the one rate cut wouldfy president trump. let's be very clear, president trump knows very little about monetary policy. i doubt that he knows the difference between a reserve ratio and a liquidity ratio. we've had some very, very sad experience in the past with presidential interference with monetary policy. in the mid 1960s president johnson went after chairman martin that was the beginning of the inflation and the instability of prices and interest rates during the late 1960s then in 1972 president nixon was able to strong arm arthur burns into a policy that supported nixons reelection bid. that was the beginning of the great inflation of the 1970s if we want to go there, we can get there. but the president must not be involved >> bill, do you believe then yesterday's rate cut was sort of a gift to the white house rather than a necessary reduction of interest rates for the good of the economy? >> what i believe is that it came after trump went after jerome powell, went after the chairman and it did not sa

based on that and the reserves they put onto the balance sheet of the federal reserve. t's how the fed ultimately gets the money to utilize that. that said, it's also an electronic process now. used to be there were reserves where there was gold put against federal reserve notes. they would use those as collateral and issue notes on the back of that. now we can be created electronically. through 1941, there were reports from the fed that talked about how the member banks, how many shares they owned and how much they were worth and how much they were putting in for them. those reports haven't been available since world war ii. for the most part, it's the larger banks who have more of the percentage and also puts in more of the reserves to be able to operate. >> robert. temecula, california. please go ahead. you are on booktv with author nomi prins. >> hello. i am blind so hopefully your book will have an audio subscription. i will be on the devils advocate side. the way i look at california conversely and arguably. they say it has the sixth largest economy in the world. t

the us federal reserve has cut interest rates for the first time in more than a decade. the american central bank said the rate would be lowered by o.25%. and this video is trending on bbc.com. a toddler in china has miraculously survived a six—storey fall, caught by passers—by holding out a blanket below. chinese authorities reported the good news that he not only survived, but got away without injury. that's all. stay with bbc world news. the top story in the uk: the government has announced more than £2 billion of extra funding to prepare for a no—deal brexit. now on bbc news, live to singapore for asia business report. a cutting response. the fed lowers its interest rates for the first time in more than a decade, but the us president and investors show their disappointment. india's smartphone app economy. how young social media stars can earn more than engineers and lawyers. —— smartphone economy. hello and welcome to asia business report, i'm sharanjit leyl. we start with the us, because the federal reserve has cut its main interest rate for the first time since the

the federal reserve having to respond to a former president, the new york federal reserve at that. to tell him that they are not going to follow his political advice, it makes you wonder whether if there is independent or they would like to claim, there are new reports that applicable consultant tim has been cheating on his wife with congresswoman ilhan omar while receiving tens of thousands of dollars from omar's campaign. federal commission records revealed that the omar campaign started paying more than $21000 in travel expenses to the east street group on april 1. he is a partner at the east street group and according to the reporting of the new york post he and his wife split in early april after disclosing the affair with congresswoman omar. fox news is not independently confirm that. while joining us tonight, news foundation editor-in-chief, christopher bedford. good to have you with us. let's start with bill dudley, that one time seem to be a rational individual. and now calling on the fed to inject itself into presidential politics, where is the cry of federal reserve inde

but also the federal reserve and the trade tensions -- not just the federal reserve and the markets. so right now the markets are pricing somewhere between 30 and 40% chance of as much of a 50-basis point rate cut at the september fomc eeting. and so long as these trade tensions are there and they're a stated reason for the federal reserve to ease policy, it makes all the sense in the world for the markets to continue. a comment about pushing on the string it doesn't matter if these rate cuts are actively stimulating the economy in the short term. what matters is whether the central bank, in this case the fed thinks they are stimulating the economy, and that right there is enough for these rate cuts to persist. >> what matters is if they're right in the long run, guy >> well, i mean, i'm here to establish what the federal reserve is likely to do, not to share an opinion about whether they should or shouldn't >> i know. but feel free to share both. we welcome both of those in this environment. >> but i think we've heard from the federal reserve. they really don't want to do this they

the former new york federal reserve president says it's time for the federal reserve to start fighting back over president trump's attacks and start being political. the insurgent elizabeth warren is gaining on joe biden in the polls by sounding like trump. she is using trump's word like economic patriotism. critics warn about warren's big government push. to joe biden, he has a family problem. not just his son. it's biden's brother in trouble with health companies. now suing that biden's brother james promised him that his access to his brother joe biden would be pivotal for their success. joe walsh tried to blame the loss of his radio show on president trump and not his racist tweets. you won't believe what he's saying now. the border wall getting built and replaced under way in new mexico using reappropriated pentagon fund. jerry nadler fighting again, a new push of the courts to impeach president trump. siness network. is the season for another government shutdown looming? why does d.c. all operate in a permanent state of outrage and emergency? they want you to think they are doing

we have robert kaplan coming on, the dallas federal reserve president.row morning we'll have the keynote speech from federal reserve chairman jay powell. and later also that morning, we have horrloretta midwester and a gopnof and at 5:00 or 5:30 tomorrow afternoon, we'll sit down with the bank of england governor, mark carney. carl >> steve, i know, obviously, powell is the main event, but do you expected bulllard's comments to offset or be markedly different from what george and harker are said today? >> well, i think jim is one who wants to do additional rate cuts and i think it's worthwhile for everybody to take a step back and say, wait a second, there's a lot of commentary to come. one of the great things about jackson hole, all of these presidents do speak and we get a snapshot in time of how the federal reserves s do feel ab things it seems like powell's a little more oriented towards taking insurance cuts out, whereas some of these other members are not bullard may be a person who's a little bit more on the side of where powell wants to be and wo

none of the blame falls on the chair of the federal reserve or the federal reserve. they are doing their job exactly to script. the president is hoping that the fed will bail them oth, but e kinds of actions, i don't think anything will bail us out. the damage will be very serious. sophie: mark zandi, we must leave itkshere. thery much indeed for joining us. mark: thank you. sophie: it has been revealed that supreme court justice ruth bader ginsburg has been treated for a cancerous pancreas. her the 86-year-old is believed to have responded well to trement for the she joined america's highest court in 1993 after being aointed by bill clinton. for the past week, thousands of syrian famils have been fleeing a government offensive in the last opposition stronghold of idlib. hundreds of civilians have been killed after a cease-fire in the area crumbled months ago. with more on the situation and the people still trapped, hereis artin patience. martin: for this young boy, it bu probably an adventure, for his parents, it is a nightmare. after eight years of fighting, syrian

federal reserve cut interest rates believes many scratching their heads if the u.s. economy is strong why the need for even cheaper money. also on the show no breakthrough no progress no deal the 12th round of u.s. china trade talks begins with the same result as the previous 11. ends a new british prime minister brings new worries for business with the brics that brinksmanship is in a much treaded no deal. this is your deed of your business report i'm stephen theirs in berlin thanks for watching it's a modest cut interest rates that has some scratching their heads the u.s. federal reserve has lowered rates by a quarter percent despite strong economic indicators in the country officials pointed to softening business investment and muted inflation it's been a long time since the last rate cut almost 11 years in fact that was december 2008 on the tail end of federal reserve efforts to prime financial markets during the recession it's only gone up since then in line with the recovering and eventually booming american economy now compare that to the european central bank

there are three key systems entities, board of governors, federal reserve banks, and federal open markets also conduct monetary policy which is supposed to promote maximum employment, stable prices, and moderate long-term interest rates. they also have the task of promoting financial system stability. so they monitor financial systems for a healthy u.s. economy, instead of looking out for house holes, businesses an communities. supervising an regulating financial institutions an activities. also they foster payments and settlement systems, safety and efficiency. also since the great recession they're now promoting consumer protection and community development. this means me back to the timing of the op-ed in the "wall street journal" from all four living fed chairs, emphasizing the belief that fed and its leaders should be independent, writing, it is crucial to preserve the federal reserve's ability to make decisions based on the best interests of the nation, not interests of small group of politicians. everyone is talking about this, deflects from the story that nobody is talking about,

the federal reserve is supposed to be independent of politics, wolf. that is an important part of their charter. because every politician like mr. trump is always going to want the federal reserve to pump out as much money as they possibly can every single day of the year, every year. so what he's doing is in and of itself wrong but the other thing that is true is he's trying once again to get the fed to use all of their bullets right now so that if we go into recession there is nothing they have left to do. that is exactly what he always does. that is how he drove those atlantic city casinos into bankruptcy and he's treating the united states of america like the trump taj mahal. like we're going to borrow and borrow and borrow and then when the bills come due, he disappears and blames somebody else. which is exactly what he did today. >> as you know, the trade war with china is putting an enormous amount of stress on the markets. but yesterday president trump delayed the implementation of more tariffs until at least mid-december. does this make a deal

the federal reserve would lower rates to help support business investment, housing demand, making it cheaper to go out and buy a car, other consumer appliances, lowering debt burdens for households, interest rates would adjust with the rate the federal reserve sets, the other effect is fiscal policy, temporary tax cuts to stimulate the economy. there's also so-called automatic stabilizers already built into fiscal policy. if someone becomes unemployed, they are able to get a check to help them out. that's already built into the system to support it when things aren't going so well. is theson to be nervous current environment, we don't have a whole lot of room with those tools. take the interest rates. in the typical economic recession since world war ii, there have been 10, the federal reserve has cut the interest 5%. by an average of right now, the funds rate target is at 2%. recession, the short-term interest rate will go to zero pretty fast and the fed won't be able to support the economy to the degree they've been able to. on the fiscal policy side, we talked about the deficits a

people expect the federal reserve to cut rates.nd thehe final spread week ahead including a slew of economic data including u.s. inflation results. this is bloomberg real yield. ♪ lisa: i am lisa abramowicz in this is bloomberg real yield. time for the final spread. over the next week pbi numbers out of japan, germany and spain plus figures from the u.s.. germany announcing second-quarter gdp on tuesday plus we get the u.k. and china reporting industrial production and retail sale numbers. two rate decisions on tuesday including one for mexico. starts asu.s. housing university of michigan sentiment results. ask they key question, does data matter anymore? is any of this going to matter for market participants? numbers thatsome matter and the rest of them you can throw to the backside. cpi should matter next week. any of the manufacturing indices that are trading close to 50, whether they will hang on above 50, fall below 50 and give recession indicators, those matter. not many others do. lisa: ed, which numbers matter? >> market da

lisa: will the federal reserve come through on market expectations? james bullard addressing trade tensions between the u.s. and china, saying "the nature for a tit-for-tat trade war is there are threats and counter threats occuring all the time. it is not reasonable for monetary policy to respond to all of these threats and counter threats. it raises the prospect there will be disappointment from the federal reserve for markets pricing in four rate cuts. do you think this is a possibility? >> i think they are being sanguine about the risk. they did deliver disappointment in july. there was overwhelming evidence in my mind to start with a 50 basis point cut, to buy that insurance upfront. they didn't go with that move, they went to 25%, messaging about the future of rate cuts. it was very muddled. so there is a possibility they slow walk into a problem. you see the curve reflected that. we have had a very aggressive flattening of the curve. that is in essence saying the fed is not taking this seriously enough. if they come back and move 50 basis point

look, you look at the president attacking, his own chairman of the federal reserve. and comparing this,aying th st his damage to the united states greater threat than that of chairman xi. quite honestly, china is a human rights abuse of historic dimension, the million people, muslims in reeducation camps, religious persecution is so unfair unjust and unaccurate.bu that larger sense domestically, it's unnerving tos the unitates, to those who want to invest in the country, to expand.they're looking forant predictability, looking for btability. they're gettinglutely none of that. three times this week, white house chand its pos on a tax you cuts. i wish i knew. i be ramesh has a lot better answer. >> woodruff: massive instability, ramesh? >> well you know the president's eeets today attacking federal reserve chairman that he himself appointed declaring china an enemy but posibly not as much of an enemy as that they were appalling tweets but one of the points he made was absolutely true, intellectual property theft, is thosere real abuses. but trump has created a problem

from the federal reserve in washington, here's michelle fleury.me those inside this building cut interest rates, it was, as you pointed out, in the depths of the financial crisis. since then, america has enjoyed its longest period ever of uninterrupted growth. but the fed felt it was necessary to act now, to cut rates by 0.25%, because of trade tensions and also a weakening global economic picture. now, explaining the decision, jerome powell, who is the chairman of the federal reserve, talked about a mid—cycle adjustment. it is intended to ensure from global risks, to help offset the effects these effects are currently having on the economy does make these factors. after the announcement, donald trump expressed his frustration, saying that mr powell had let us down by not taking a more aggressive stance on interest rates. earlier, when asked if they had caved to white house press, mr bell had this to say. we never take into account political considerations. there is no place in the considerations for that. us stocks fell on the news. wall street h

there were two descents, the boston federal reserve and the kansas city federal reserve president believe federal funds rate should have remained where it was. jerome powell said this will not be the start of a long series of cuts, it might also not be a one and done. he almost took credit for the expansion continuing. he said as you see the fed moving to a more accomodative policy, he pointed out unemployment is low, wages are rising and consumer spending is increasing. so if december went too far according to some economists, i wanted to he know if waiting seven months to act on this cut, did it cause business investment side of the economy to slow down. listen to his answer. >> you see manufacturing being weak all over the world, business investment is weak. i think there's a global business cycle happening with manufacturing and investment. and that's been definitely a bigger factor than certainly we expected late last year. >> reporter: the chairman making the point that the weaknes weakn our economy is being caused not by anything within the united states but pressures from outside.

so all eyes will be on this man, jerome powell, chairman of the us federal reserve.thering of global bank chiefs, can he calm anxious financial markets? the markets really want hear jerome powell promise more cuts down the road. they want to hear that the fed is going to do as much as it can to provide a buffer against the current trade war and the weakening global outlook. but it is very possible that jerome powell may not deliver on that promise. and it is notjust wall street screaming for more stimulus. the president tweeted... ..and compared jerome powell in another tweet to a golfer who can't putt. even ifjerome powell hints that he will cut interest rates, will it be enough to satisfyjittery financial markets and a president eyeing re—election. most observers think not, putting the world's top central banker in an no—win situation. michelle fleury, bbc news, new york. youtube's owner google says it has shut down 210 channels that were part of what it calls a "coordinated" attempt to post material about the protests in hong kong. the search giant linked its move

connell: what does the federal reserve do with this? does it act sooner than some expect in between meetings? tomorrow. who knows. do you expect something soon from the feds? >> one of the things we talked about before the fed took over currency. that's going to be a drag on corporate earnings if our currency is very, very strong relative to other countries. i think the fed is looking at a lot of things in the rubik's cube. >> that was one of the president's tweets with all the money flowing into the united states and that is partially a result of all that. todd, give us your take on the day. >> i think yikes is a good word for it. but it isn't a surprise. we are reversing back and forth in you a wide trading range. however, if we are down again tomorrow, i would say we are look at the end of the week. when you look at it, you have got to remember when you have manipulating markets, that's a problem. melissa: joining us on the phone, liz ann, we are talking about the inverted yield curve. but other subjects on our plates, chinese indust

in a few moments, former federal reserve chairman allen greenspan is my special guest this weekend.re going to talk about the economy and this week that was wild in terms of the stock market. also ahead, we will talk with not one but two golf superstars this weekend. brooks kept a and rory mcllroy, coming up right here. but first the dow halting is losing streak but not before a massive slide monday of more than 700 points. while markets were certainly impacted by new china trade tensions, many still talking about concerns over an economic slowdown where do we go from here? join me now the former chairman of the federal reserve, who oversaw the long expansion, except for the one we are in right now. the chairman, allen greenspan is with me. doctor greenspan, always a pleasure to have you, thank you for being here. >> a pleasure to be here. >> the week that was, wild swings in the stock market over the u.s. calling china a currency manipulative over this impasse between the u.s. and china and of course come over worries of a slowdown as the federal reserve is lowering interest rates

this has the potential of eroding confidence in the federal reserve.ion which already has its merits in doubt by a vast number of the population including the president. the federal reserve has one main responsibility given to them by the united states government. that's to provide full employment and financial stability. liz: would the fed step in if there is a president bernie sanders or elizabeth warren? they are just as tough on trade and tariffs and they could tank the economy. would dudley say stop them, too? >> quite possibly he would. the precedent would bear out on that. but going down this road is quite dangerous. we have seen what happened in other countries when the central banks becomes politicized. look what happened in zimbabwe and venezuela where there is political control over the central bank. that's the last thing we need here. liz: you get hyper inflation. dudley is saying the bankers' judgment should replace the will of the voter. it calls into his actions at the fed in september 2012. did william dudley help evening near bawmple g

i think what investors need to worry most about right now, is the federal reserve. the federal reserve raised rates too far, too fast and that had the effect of suppressing our investment directly and indirectly suppressing our exports. their currency effect and you saw that in q2. we came in at 2.1 percent real gdp. that is good, the president likes great. we could have been at three percent if not for the fed. it is clear in the numbers we lost two thirds of a point to the fed on exports. we lost some investment as well. so investors are trying to -- i think that the big things to propel the dow past 30,000 is getting the fed to lower rates, and passing the us-mexico candidate agreement. this deal is far more important in the short run then working things out methodically with the chinese over the next several months. jerry: peter, let me ask you this. china has been knocked off its leading trade partner in the u.s. but overall u.s. trade deficit increased over 7.9 percent in the first half of the year. exports flattened and imports from other companies started to

before you became a federal reserve official, you were a labor economist. >> yes.rker. >> i did. jon: tell us what in this environment, in a 21st century economy with so many challenges in terms of automation and globalization, what do our viewers need to do to best prepare themselves to drive in a 21st century economy? >> well, workers have been under a great deal of pressure in this economy now for decades, at least since the mid '80s. technological change and globalization together have worked to eliminate middle class jobs and to put downward pressure on the wages of those with less education. the gap between what you can earn with college degree and what you're likely to earn if you only have a high school degree or less has continued to grow. right now we have a very strong job market, and that's helped to arrest some of these long-term trends that date back to the '80; less skilled workers over the last couple of years have seen larger wage increases than more skilled workers which is a wonderful thing but especially with art potential if intelligence -- art

-china tariffs, taking a look at toys, former federal reserve chairman, capitalism in america, alan greenspanlking global market and the fed. don't miss a moment of it. futures lower, lots of nervousnesses over the china situation and tariffs, yesterday markets finished up with encouraging economic data, fears of global slowdown, sparking up rally, nasdaq up 176, the u.s. maintains pressure on hauwei, washington refuse to go grant licenses for u.s. companies to do business with the chinese telecom giant after beijing refuse today buy american products, this according to bloomberg. tit for tat continuing for hauwei and the u.s. >> well, it's about cooperation and noncooperation. president trump and the administration did not start off with you have to buy this, they started off with you have to make fundamental changes that you have to demonstrate how you are doing it but it did turn into commitments from the chinese for particular items and so it's only natural that you would become linked and, you know, eventually they are going to keep commitments but as you know right now china is if you w

federal reserve cuts interest rates for the first time in over a decade. president trump tweets his t spleasure it doesn' far enough for him. the first night of democratic debate in detroit was a battle for the direction of the democratic party. now it is time for round 2. sen. warren: i don't understandd why angoes to the trouble of running for the president of the united states ju to talk about what we can't do and shouldn'for. laura: plus, an unlikely tourist destination is pulling in the crowds. whywn is one ton the austrian alps suddenly so popular? laura: for those watching on pbs and around the globe, welcome td "wews america." the u.s. federal reserve has cut interest rates for the first time since the financial crisis of 2008. fed chairman jerome powell says the quarter of a point reduction was designed to keep the economy growing for as long possible he start of a long-term cycle of cuts. that has drawn the ire of president trump, who tweeted, "powell t us down." michelle fleury is outside the fed and joined us with her assessment. why is the cha