federal reserve new framework what does that exactly mean. the new framework basically means that the federal reserve is completely changing how it views inflation how it views its role in america essentially meaning that whatever the rules were for the last 10 years are no longer the rules the way that the fed has essentially approached unemployment the way that the they have approached this mandate they have from congress which i'm not sure i agree with of helping to reach full employment the way that they essentially view the economy as a whole and their own policies which i think a lot of people are arguing including myself are actually hurting the nation in terms of fiscal responsibility in terms of the value of the dollar that all those things are essentially being thrown out the window and there's a whole new way according to drone pile of looking at the federal reserve and what it does and essentially saying that markets can be treated in a completely different way than they used to be treated almost acting as if there's been some kin

but remember the federal reserve is a private entity it is not a government entity and so it acts as a private entity but it has control over monetary policy for the entire nation that is bizarre in and of itself why is a private entity in control of our money supply in control of interest rates in control. of the value of our currency and yet again there are private companies that they actually have no through this year a duty to the taxpayer well ben i want to bring an dean of miami business school dena john quality to join in on the conversation quality i appreciate you being with us today we know how ben felt about the speech here today it was somewhat strange i will admit what was your take. well i was very much enjoying listening to ben's commentary i think i have a slightly more moderated view i think actually the. federal reserve has been doing a good job of monitoring the inflation situation i think making the tradeoff that moving towards an average inflation rate as opposed to setting a 2 percent maximum ceiling is a way of liberating market forces and facilitating

when you look at the overall picture and i mean this is if you go back to the origination of the federal reserve i think this is kind of their plan all along this is part of the world's largest legalized ponzi scheme they can do has allowed the rich to get richer as times get tougher you know for years they've had access to this cash and capital to borrow it's only recently that the average guy can actually brought some money to get in so they threw a stripe and bad conditions and actually always built well under the toughest conditions because they have the access to capital and others don't they have the ways they get the money others don't so their businesses are allowed to thrive well everybody else is out of business you come by where i am in chicago and almost every small business is going to be out of business i had time to selling is over not just wipe out an entire class of people because you allowed the wealthy to go out and thrive through these tough times getting access that they had all doing all the things that normal people don't get to do so the class divide will continue and it'

federal reserve chair jerome powell announced the goal of keeping the inflation rate at about 2% annually. rateed has a plan if the drops or rises too much. chairman powell also discussed covid-19's impact on the economy. >> good afternoon, good evening and good night to our guests from 46 countries around the world in at least 12 different time zones. it is my pleasure to welcome you to the federal reserve bank of kansas city's economic symposium titled, navigating the decade ahead. implications for monetary policy. name is esther george, president of the kansas city fed. i'm pleased to be joined by federal reserve chairman jay powell as well as many of my colleagues from the federal reserve and by other central bankers, academics, public and private sector economists and members of the news media. foras been our custom nearly four decades to welcome you to beautiful jackson hole, wyoming, part of the region served by the kansas city fed. returning forward to to that setting next year. format, instead of expressing my gratitude to those who travel around the globe to attend the symposium

effort to survive where perhaps i disagree a little bit is in looking at the government or the federal reserve or the treasury as somehow the place to start understanding what's going wrong i don't see it that way i see capitalism as a system that gets itself periodically into trouble lets remember the national bureau of economic research and many other institutions have traced through the rise and fall of capitalism's instability its business cycles if you like every 47 years we have a downturn that's the average and typically if it takes longer than 47 years which it did since the last crash in 2009 you pay for the longer upswing by either a longer or a sharper downswing we are now in a longer deeper downswing we would have been in any case the pandemic only makes it worse blaming the pandemic is a desperate effort to allay chasing the instability that dream that capitalism has always brought with it and he said that the federal reserve like this u.s. central bank that preceded it was an attempt to manage the very same contradictions of capitalism its business cycles its inequality and so no

of the federal reserve and not the government of bailing out the banks. let me preface it by explaining i have no interest in protecting or defending what the banks do but i want to point out that the problem is a bit more severe than some policy choice of the federal government about to go either way they're under enormous pressures and we have to face that or else we will misunderstand the situation had we let andy a federal reserve let the big banks go under back in 2008 in those last 4 months of that year when literally that was on the table as an option they would have had the following consequence in a globalized economy which we are now and we were even more so that there is an immense competition among the world's $25.00 biggest banks not all of which are american many of them are european some are japanese now the chinese are injury and so on how did you let the american banks collapse all out the lehmann brothers failure you would have not thought that was your intent but you would have given them and warmest competitive advantage to naani you'l

it is my pleasure to welcome you to the federal reserve bank of kansas city's economic symposium titled, "navigating the decade ahead: implications for monetary policy." my name is arthur george -- esther george, and i'm pleased to be joined by chairman jay powell, as well as many of my colleagues from the federal reserve, and by other central bankers, academics, public and private sector economists, and members of the news media for this annual gathering. as you well know, it has been our custom for nearly four decades to welcome you to beautiful jackson hole, wyoming, part of the regions served by the kansas city fed. and i look forward to returning to that setting next year. with this year's online format, instead of expressing my gratitude to those who travel from around the globe to attend this symposium while managing jet lag, i will offer my appreciation to those attempting to manage local time zones with the current time no ranges from 6:00 a.m. thursday to 1:00 a.m. friday. this year has been an extraordinary one for monetary policy and central banking. many of the issues that

third quarter, 9% bounce back in the fourth quarter, still he sees gdp growth in 2214% so the federal reserve is focused on unemployment and the dallas federal president says he will see those record number on a payment rates in the near-term. >> we still, even by the end of 20 to one based on our forecast will not be a full implement and it'll take us longer into 2022 to start approaching full employment. >> he sees unemployment about 8% the individual in 6.5% at the end of next year, harker sees unemployment 9% at the end of this year end 7% at the end of next year. connell: thank you, edward lawrence, the president in the meantime is expected to leave the white house later this hour he has a campaign rally scheduled for new hampshire this evening after accepting the republican nomination in making a speech on the south lawn of the white house last night, as we get closer to the election, were going to start to look into things like what do the candidates plans that they made public mean for your money. gerri willis has been doing work on that, she's been working so hard she barely made it

president rosengren is the president and ceo of the federal reserve bank of boston. s a participant in the federal open market committee, the monetary policymaking arm of the united states. as ceo he leads the boston fed's , work which includes economic research and analysis, banking supervision and community economic development activities, and a wide range of payments, technologies and finance initiatives. ms. lauren anderson serves as senior vice president and associate general counsel of the bank policy institute. in this role she oversees the bpi's advocacy across a range of domestic and international issues. she brings over a decade of experience in financial regulation and oversight, serving as senior advisor at the bank of england and before joining the bank of england, served at our fdic. mr. tom bohn serves as the chief executive officer for corporate growth. it serves 90,000 investors, executives, lenders and advisors to the growing middle markets of companies. prior to joining acg in december, 2019, mr. bohn served as ceo of the north american veterinary c

treasury and federal reserve said they would not enforce that. we know how this ends for working people. we have seen how powerful the programansform into subsidies for real estate investors. we have members who received ppp loans and they have not protected paychecks or health care. one company received 34 ppp loans. hotels in boston, providence and new haven were shut down in march. it is unclear when they will reopen. in providence, they cut off medical benefits. they reveal how a powerful industry changed a program designed to keep workers on payroll to one that can keep hotel owners current on their mortgages. of, hotels demand a bailout 86 billion using the main street program. this commission reported the feds have considered establishing an asset based lending facility we fear would do that. who would benefit most from a hotel bailout? lobbyists want you to believe it would be mom-and-pop hotels. the largest beneficiaries are significant -- are investors. 11 borrowers had a combined 30 billion in loan balances for third of the total outst

n, federal reserve bank of boston will testify during the first panel. second panel will include industry participants. . they will have one minute of opening remarks. i now recognize myself for an statement. our commission's pleased to mainne this hearing of the street street program. i also commend my fellow commissioners. ogether we worked in a bipartisan, bicameral way to release three reports and organize this inaugural hearing. like to thank our personal staffs for their diligence in this area, absence of a n chair, and on behalf of all officers, i want to thank our clerk, amber, and thank you for the u.s. senate for these facilities today. findings from today's hearings be reflected in our next report. the main street lending program released on april 9 and finally became operational on july 6. to the implementation, the program generated significant interest and engagement. since then the months rogram's been available, 95 million of the $600 billion allocated has been london to loaned to has been eligib eligible businesses. if anything, , needs

federal reserve leaving rates where they are, as expected.arnings news from a bunch of companies, big tech on fire, crushing estimates with their earnings. >> yeah, there's a lot of important news that came out this week. first of all, the fed. the fed's not touching interest rates for a long time. jay powell could not be more clear about that. we're going to be at zero for 3-4 years. by the way, people underestimate when you have things hike equities which are long duration assets, the way from the way you calculate the value of equities, when you keep rates at zero, it's an explosive impact. so that was big. the other thing that the fed is doing and will continue to do, is they keep extending their programs and putting more liquidity in the system, and i think they're going to grow the size of their balance sheet even bigger. the amount of cash sitting on the sidelines waiting to go into different markets is extraordinary. anyway, those are big factors. the technology, the dynamics, you know, we've talked for years about what i call fast ri

bust the one business show you can't afford to miss sarah montecito in washington coming up the federal reserve has bet it's working on the next pair of mental digital currency and now they're partnering with a big university to test it we have a boom bust panel coming up and michigan for the future of the auto sector but how long before we actually see the plan come to fruition you have a car folks standing by several lots to get to so let's get started. with the news of central banks around the world creating their own digital currency as well many have wondered if and when the u.s. might follow suit well now we have a better idea as the u.s. federal reserve has now partnered with mit to develop a hypothetical digital currency over a 2 to 3 year period in other words this is a digital equivalence to cash federal reserve board governor lowell brain ard said given the dollar's important role it is essential that the federal reserve remain on the frontier of research and policy development regarding c.b.c.'s but many are questioning its safety and whether or not it will actually bypass central b

period in other words this is a digital equivalent to cash federal reserve board governor brain ard said given the dollar's important role it is essential that the federal reserve remain on the frontier. research and policy development regarding c.b.c.'s but many are questioning its safety and whether or not it will actually bypass central banks well for more on this we're joined by then so on and chrystia i ben let's start with you because this is something that we've talked about multiple times on this show that the fed will soon attempt to create its own digital currency now i think it's fair to say this move doesn't catch you as a surprise break down what this could look like would we have a digital wallet separate from your regular bank accounts. well essentially that's probably what would happen i guess that's what they're trying to get mit to take a look at what's fascinating about this is the fed's terminology i've been saying for well over a year the fed was going to do this at some point very soon in fact i think i even said it this week and yet here we are at this moment

maybe a combination of summer doldrums, federal reserve angst and fiscal weighing on the market. upside bias remains firmly in place. fund managers have come around to seeing the rebound as a new bull market as they are making moves to catch up. we have some of the best pros to share their ideas with you as well. plus i get reaction from the white house when i talk with the council of economic advisors director scott good speed. president trump is showing up in biden's backyard. trump-backed candidates continue to win major primaries. we have one of our favorite guests who happen to be one of those winners. she joins us on the show next on "making money." ♪. charles: breaking news, folks, fund managers discover the bull market! that's right. it is a presidential, political season. so we should expect a lot of flip-flops. by the way we're getting a lot of them. i got to tell you i lost count on the political front but the one that caught my eye, the flip-flop of the week came early in the week when 200 fund managers in charge of investing half a trillion dollars changed their posi

it is my pleasure to welcome you to the federal reserve bank of kansas city's economic symposium titled navigating the decade and president of the kansas city and am pleased to be joined by chairman jake powell is one of many of my colleagues in federal reserve and other central bankers, academics, public and private sector economists and members of the news media for this annual gathering. as you well know, it's been our custom for nearly four decades to welcome you to wyoming, served for the kansas city that. i look forward to return to the online format, senate expressing my gratitude for those who travel around the globe to attend for managing jet lag. appreciation to those attempting to manage local. with the current time, ranging from 6:00 a.m. thursday to 1:00 a.m. friday. this year has been an extraordinary one for monetary policy and central banking. issues with time including the level of interest rates the effects of heightened uncertainty and how to effectively communicate monetary policy have been amplified by the economic fallout of the pandemic. for more than a decade, it

federal reserve has now partnered with mit to develop a hypothetical digital currency over a 2 to 3 yearperiod in other words this is a digital equivalence to cash federal reserve board governor lowell brain ard said given the dollar's important role it is essential that the federal reserve remain on the frontier of research and policy development regarding c.b.c.'s but many are questioning its safety and whether or not it will actually bypass central banks well for more on this we're joined by ben so on and christiane i ben let's start with you because this is something that we've talked about multiple times on this show that the fed will soon attempt to create its own digital currency.

think the federal reserve shifted from what the federal reserve was that i knew when i started in this industry to one now that does take heed to markets. reserve didn't used to believe they could help the differences between the haves and the have-nots. they thought that was policymakers, fiscal policy makers. the --y can help by run now they believe they can help i running the economy hot. i don't think there's much in their mind of a perceived cost for doing this. we may have repercussions down the road. the federali think reserve stays behind the market, and it is a put, without a doubt. lisa: i did show some restraint at the start of the show. i am not going to show restraint now. is this a bubble if you have junk bonds being sold, 10 year jump bonds -- 10 year bonds 2.85%?old at brent: you are not going to get me in trouble. in today's day and age, it is what it is. we don't own any high-yield bonds right now in our portfolio. i don't think we will wake up five years from now and that will be the same situation as yesterday. lisa: that was very diplomatic. when does relative retu

so i mean that is the only that's the next step from the federal reserve but what can really break this corner are a stock market rally if we don't get the coronavirus back seen by the end of this year if bass coronavirus the numbers continue to. fire and then the situation continues to go. out of control that can certainly prolong the recovery process that can certainly be you know take that the ship out of reach 1st still are those in the stock market crash to an enormous level and of course i want to christiane here now retail has been a sector that has been hard hit with a pandemic but now that is having a domino effect on real estate what's the story there yes the u.s. retailers they want to name that i have been heavily hit by this pandemic and the subsequent shutdown so we've had numerous come. now declare chapter 11 and those companies include j. could neiman marcus and taylor event they're all using the chapter 11 bankruptcy in order to quickly get out of their costly long term leases and shutter thousands of stores now but this move kind of threatens to up and huge swath of re

period in other words this is a digital equivalent to cash federal reserve board governor lowell brain ard said given the dollar's important role it is essential that the federal reserve remain on the frontier of research.

one of the things he said is they are very aware, at the federal reserve and the other federal reserve presidents, about this gap in unemployment across racial lines before the pandemic and even more keenly now. one of the things he said was a priority you was before the federal reserve stops its own actions, they want to see the economy on the road to recovery. and one of the signals for him is seeing that gap narrow. host: let's go to christian, calling from woodbridge, connecticut. christian's job has been affected by the pandemic. caller: good morning. thank you for taking my call. i wanted to make a couple of points, if i can. the first point is i know that, since this pandemic began back in march, that approximately 50 million people have applied for unemployment in some shape or form. if we are to believe this unemployment number and with approximately 150 million working people in this country, and you have 50 million people -- and, mind you, every week there are one million plus people filing new unemployment claims. so if you just do simple math, the idea that the unemploymen

the basement from all the central banks in particular the federal reserve printing too much money and holding interest rates artificially low to destroy the value of their currencies so it would make any sense to get rid of your gold now when there's still so much downside risk in the dollar another fee of currencies i think 2000 is merely a stopping place to much much higher prices but really it's not the price of gold that's going up it's the value of currencies that you use to buy gold as that are going down and these currencies are going to lose a lot more value so the price of gold is here to go much much higher and all the speculative liquidations that took place yesterday are simply creating better opportunities for people who haven't bought enough gold and silver to buy some more well this thing and several silver shawn was hit even harder on tuesday plummeted by almost 15 percent but this was its biggest decline since october of 2000 a but some analysts are calling it a mini crash what's the future you see there. yeah i think so it's got a long road ahead of it with with vola

relations in the age of copa 19 plus the us dollar is struggling to stay above recent lows as the federal reserve minutes are taking center stage we bring in insight from a former fed insider on what to expect in the nation's central bank later bull run has picked up again uncertainty of the 10 demick what is the hype here to stay we have a boom bust table standing by to catch us up on the crypto search show today so let's dive right in. and we leave the program with the latest in trade negotiations and trade negotiations between the united states and china u.s. president donald trump told reporters tuesday he had cancel a planned aug 15th review of the trade agreement between the 2 sides continue his criticism of china's handling of the crow virus pandemic. you know why i don't want. i don't want to deal with what they did. or i don't want to. do it out. of the world. they stopped it from going. so that's correct. meanwhile white house chief of staff mark meadows told reporters tuesday the mandated review of the agreement had not been rescheduled as of yet but insisted trade representative rober

ends, the dow just points short of -- melissa: the s&p 500 extending its record streak after the federal reserve announced a landmark shift in policies, pledging to focus on restoring the country to full employment and tolerate higher inflation. the s&p closing at a new high for the fifth straight day marking the most consecutive records in more than two and a half years. we like that. the nasdaq losing steam after hitting an all-time high earlier today, snapping a five-day record streak at the close. and the dow a little more than 1,000 points away from record territory. i'm melissa francis, and this is "after the bell." there's connell. connell: connell mcshane. good to see you, melissa, live today from jacksonville, florida. florida, the final stop on our swing state tour, out speaking to voters here in the sunshine state the earlier today, all of this as president trump prepares to formally accept the gop nomination later tonight back in washington. so a lot to do on a busy thursday. fox business team coverage for you. blake burman and gerri willis to start us off. blake, you get to go fifth

that is also something that is the rolled federal reserve latest. -- place. can be no doubt that the concentration of wealth, federal reserve policies benefit those who hold wealth, and that is concentrated in the united states. it does not have no effect on the have-nots. we have to be clear about that. >> rates remain low. you see inflation going up. over the weekend, that could actually continue to increase over time. he quoted milton friedman famously saying, nothing is so permanent as a temporary government program. more inflation, which means the back end can rise. portfolios are opposition for this, do you agree? >> i agree that rates could rise but i do not agree with milton friedman. the size of the balance sheet, that we have seen around the ifld, that is assumed that this is going to be inflationary ultimately. the markets are not positioned for that. but the way they are not positioned is not so much that there will be inflation that is out of control, but there will be more inflation than the markets expect. there is a big gap between inflation e

the federal reserve, american central bank has always had two mandates.arket. now, what the federal reserve is now saying is, look, we are ok to let the overall us economy get a little hot. that means they are ok for inflation to run above 2%. in previous times, if they saw that there was low unemployment, it would mean that it would be high inflation because it means that demand goes up because more people have money so more people have money so more people can buy things on what the federal reserve would normally do in that instance as they would go to interest rates, but what this new move is allowing the federal reserve to do is to keep interest rates lower for longer to do is to keep interest rates lowerfor longer in the to do is to keep interest rates lower for longer in the hopes that that is going to stimulate the economy even further. low interest rates and fairy means that people are going to be more encouraged to borrow money because it's kind of cheap to do so. and if they borrow more money it means they are going to spend that money and it is

in late july, you said the markets could drive the rates below zero, even without the federal reserveng is zero rate policy. what about the recent rise in are the drivers for negative rates still there? is, theirst thing seasonality for bonds turning negative, traditionally the bottom is the second week of august. the selloff arrived on schedule. i am not surprised. but having said that, we have good support on bonds and in terms of the 10-year note and getting rates above 1%. i don't think that is very likely. as far as the negative rates are concerned, bloomberg ran a fantastic interview with lacey hunt. he points to the same things i do, which is that there is a lot of deflationary pressure. which are been reliable for the last 35 years, a sickly indicate that we should expect -- 35 years, basically indicate that we would expect to see the 10-year note go to negative 50 basis points. range is between -2% and negative 1%. we have never missed hitting the target numbers in the model. we have never failed to overshoot to the lower end. bondsl remain bullish on longer-term. they don't

meanwhile global markets have been reacting to some pessimistic minutes from the federal reserve's latest meeting all their increasing signs the u.s. economic recovery is slowing. there is certainly a of philly that things are stalling if not even losing ground up until now rob consumption has been pretty strong as a result of those stimulus checks and. unemployment benefits but 5 it's true that the businesses have continued to struggle and actually you as a bankruptcy is are are on track right now to a 10 year high and some of those companies might never come back and that's why the federal reserve keeps insisting that fiscal policies are to key now to keep coverage alive and ongoing and just quickly talks on new stimulus measures in congress have stalled but is that help on the way. well as for now things that look complicated sense of both republicans and democrats seem not to to agree on a full stimulus package they hope are right now lingers on not so cold that skinny deal which it probably will disband additional unemployment support aside from bring in some more help for forest sch

i think he changed the course of the federal reserve, saying a strong jobs market, rising inflation does not rise concerns or raise concerns to high inflation. the fed did about-face cut rates three times in 2019. this year the covid-19 economy shut down the economy, with two massive rate cuts back in march, taking a round-trip to the lower number back in december of 2015. the federal reserve must present sort of venture, this veneer, at least the chairman this veneer of calm, whenever he or she is anxious or scared to death. not other mem benches the fed. most notably fed president john williams pounding the table about the deflationary crisis, although the fed prefers to call it a lack of inflation. late in the day news broke that jerome powell, is set to deliver a profoundly consequential speech at jackson hole on thursday this is the virtual version of it, with the aim to allow inflation to rise above the target for a long period of time. it is being compared to the dramatic efforts from paul volcker to arrest inflation in the early 1980s. this time it is set to spark inflation or be

if well-runs dry from the federal reserve or federal government could that come in to serve as a spark the market? >> first of all the well will not run dry but that is fuel, no doubt and just remember greed begets greed and the market is on the greed side right now. charles, i've been calling for a melt-up based on the technical things i follow but it is not everything because i can tell you, airlines, cruise lines, hotels, energy, financials are still not going anywhere. names like wayfair and target now and lowe's and home depot and some of these other technology names in software and cloud, they're just insane. of course the fang names which i don't know what is going on there, but people are piling on each other continue. again i think nasdaq 13, 14,000 could be in the offing here just based on all the money flowing from ecb and jay powell. we'll see where it goes. charles: so, kathryn, where do you, how do you position your portfolio understanding your skepticism but by the same token you knew would be a v-shaped but in terms of making money? >> i don't want to sound negative, ch