lehman brothers collapsed timothy geithner was the head of the new york fed which is really the federal reserve bank of america ben bernanke he was the head of the federal reserve bank and hank paulson was the treasury secretary and they let lehman collapse and then came to the rescue of all their friends well they wrote an op ed about basically concern trolling that there could be another financial crisis and first pointing out how much they as you know federal reserve bank chairmen and people involved in that helped rescue the system back then they said although we in other financial regulators did not foresee the crisis but foresaw the crisis i might add we moved aggressively to stop acting in its traditional role as lender of last resort the federal reserve provided massive quantities of short term loans to financial institutions facing runs while cutting interest rates nearly to zero the treasury department stopped iran on money market funds by providing a backstop for investors the treasury also managed to take over the mortgage giants fannie mae and freddie mac. and worked with the fed to try

plus, later on in the program, the president and ceo of the federal reserve bank of dallas, robert kaplan, my special guest. joining us coming up. but first we have the big headlines impacting everything from wall street to main street. geri? >> thanks, maria. hurricane florence has arrived and wreaking havoc in the mid-atlantic. the storm made landfall friday morning, pounding the carolinas with heavy rains, rising floodwaters, and gusting winds. hundreds of thousands are currently without power and that number expected to rise. more than a million people were ordered to evacuate the virginia and carolina coast. the storms could affect about 10 million people before it's done. trillion dollars giant apple unveiled its latest products this week. the tech giant rolled out three new versions of the iphone, iphone 10 r, 10 s, and 10 s max which has 6 1/2 inch cinematic video to display. the potential game changer could be the apple watch serious 4 -- series 4. it can measure your heart rate and detect heart attack and also call 911 if it takes a hard fall. the watches range from 400 to 800 d

banking reimagined. what's in your wallet? maria: welcome back. the federal reservet to hold its i 2/day meeting in -- its two day meeting in two weeks time. with unemployment numbers at historic lows and the gdp gaining strength the odds of a september rate hike weigh in at over 95%. joining me right now to talk about the backdrop on the economy right now is the federal reserve bank of dallas president and ceo robert kaplan. we should note that the dallas fed is not a voting member this year and robert kaplan it is good to see you this weekend. thank you very much for joining us. >> good to see you, maria. maria: when you look at where we stand right now, we just saw two straight quarters of 4% plus economic growth. we also had data just this past week, retail sales was weaker than expected. inflation was basically it looked like a nonevent. what's your take in terms of what the fed should be doing with regard to interest rate increases? have things changed in any way for you? >> they haven't changed. i still think we'll grow at 3% in 2008 -- 2018. gdp will grow at

lehman brothers collapsed timothy geithner was the head of the new york fed which is really the federal reserve bank of america ben bernanke he was the head of the federal reserve bank and hank paulson was the treasury secretary and they let lehman collapse and then came to the rescue of all their friends well they wrote an op ed about basically concern trolling that there could be another financial crisis and first pointing out how much they as you know federal reserve bank chairmen and people involved in that helped rescue the system back then they said although we and other financial regulators did not foresee the crisis because report foresaw the crisis i might add we moved aggressively to stop acting in its traditional role as lender of last resort the federal reserve provided massive quantities of short term loans to financial institutions facing runs while cutting interest rates nearly to zero the treasury department stopped iran on money market funds by providing a backstop for investors the treasury also managed to take over the mortgage giants fannie mae and freddie mac. and worked with th

plus, later on in the program, the president and ceo of the federal reserve bank of dallas, robert kaplan, my special guest. joining us coming up. but first we have the big headlines impacting everything from wall street to main street. geri? >> thanks, maria. hurricane florence has arrived and wreaking havoc in the mid-atlantic. the storm made landfall friday morning, pounding the carolinas with heavy rains, rising floodwaters, and gusting winds. hundreds of thousands are currently without power and that number expected to rise. more than a million people were ordered to evacuate the virginia and carolina coast. the storms could affect about 10 million people before it's done. trillion dollars giant apple unveiled its latest products this week. the tech giant rolled out three new versions of the iphone, iphone 10 r, 10 s, and 10 s max which has 6 1/2 inch cinematic video to display. the potential game changer could be the apple watch serious 4 -- series 4. it can measure your heart rate and detect heart attack and also call 911 if it takes a hard fall. the watches range from 400 to 800 d

lehman brothers collapsed timothy geithner was the head of the new york fed which is really the federal reserve bank of america ben bernanke he was the head of the federal reserve bank and hank paulson was the treasury secretary and they let lehman collapse and then came to the rescue of all their friends well they wrote an op ed about basically concern trolling that there could be another financial crisis and first pointing out how much they as you know federal reserve.

federal reserve bank is raising interest rates it's interesting that you mention the u.s. federal reserve there as contributing to some of this crisis and so it's not actually this time trade policy trumps trade policy that is causing this turmoil. trumps trade policy contributes a little bit here and there but it is not one of the major causes of this particular turmoil for instance drums tweets against turkey do play you wrote in the extent of the devaluation of the turkish lira but they are really not the reason for that and how real is the risk of contagion to other markets there is some risk of contagion however contagion to be confined to those emerging markets that are fairly vulnerable again the vulnerable ones are those with significant dollar debt and with significant current account deficits which means they are to some extent living beyond their means other countries such as those which have little dollar debt and which are exporting more than they import those other countries should be mostly safe i think we do have to ask the question as well you know we're n

paul volcker era the federal reserve bank starting with alan greenspan recessions have been outlawed the central banks have printed all the money they need to keep banks afloat even though it destroys the economy destroy social cohesion they think will see quantitative easing for a q.b. for if the bond market sells off a little bit more if the stock market sells off even two or three percent while the fed just step in and start printing money as they have now for twenty five years i do think you'll see a q e four but not at those premiers that you outline a think you'll see a q e four when you have let's say a ten or maybe even twenty percent correction in the stock market and perhaps a very big inverted yield curve and that's both plus those i don't think they'll step in. you know two percent or three percent correction in the stock market although they could i doubt that's where they would make that move i think they would wait until things get there usually actually follow what's happening in the marketplace they really don't lead although they give the atmosphere of the projection

first pointing out how much they as you know federal reserve bank chairman and people involved in that helped rescue the system back then they said although we and other financial regulators did not foresee the crisis the kaiser port foresaw the crisis i might add we moved aggressively to stop acting in its traditional role as lender of last resort the federal reserve provided massive quantities of short term loans to financial institutions facing runs while cutting interest rates nearly to zero the treasury department stopped iran on money market funds by providing a backstop for investors the treasury also managed to take over the mortgage giants fannie mae and freddie mac. and worked with the fed to try to prevent the collapse of large systemically important financial firms the federal deposit insurance corporation guaranteed bank debt protected depositors by the way the title this up is called what we need to fight the next financial crisis for a while the key phrase there is they run on money market so in a functioning economy there is no such thing as a run on a money market you

, appreciate your insights and daniel is with neuberger berman., meantihe president of the federal reserve bankst. louis is making the case for no more interest rate sincreases. ja saided financial markets may be signaling that monetary policy iwi g too tight, citing inflationec exptations that are still below the fed's target level.ec most e the fed to hike two more times this year and as many two more times next. >> it the strong domestic economy pushed imports to a record while slowing global growth softened u.s. exports. it widened 9.5% from june to july, bringing the deficit to its largest in a decade. >>> president trump today said trade talks with canada are coming along. discussions between the two cotries resumed today after ending last friday with no agreement. this afternoon, canada's foreign minister echoedhe president's ntiments. >> the goal for canada from the outset is to get a good deal for canada. that's the objective that we are focused we really believe that aeal thatorks for canada and works for the u.s. and works for mexico is possible and that has been our conviction from

federal reserve bank is raising interest rates it's interesting that you mention the u.s. federal reserve there as contributing to some of this crisis and so it's not actually this time trade policy trumps trade policy that is causing this turmoil. he contributes a little bit here and there but it is not one of the major causes of this particular turmoil for instance drums tweets against turkey do play you wrote in the extent of the devaluation of the turkish lira but they're really not the reason for that and how real is the risk of contagion to other markets there is some risk of contagion however contagion to be confined to those emerging markets that are fairly vulnerable again the vulnerable ones are those with significant dollar debt and with significant current account deficits which means they are to some extent living beyond their means other countries such as those which have little dollar debt and which are exporting more than they import those other countries should be mostly safe i think we do have to ask the question as well you know we're not just talking ab

show we have been saying for many years you can't taper a ponzi and of course united states federal reserve bank is trying to taper the ponzi by unwinding quantitative easing and raising interest rates and we have seen the unwinding in emerging market currencies and another thing we've always said is that while inflation is a monetary event that hyperinflation is a political thing is when people lose confidence in the political powers that be and you see that in venezuela but you're also starting to see that in argentina where you're having almost hyper inflationary like sort of movements in their currency so i'm going to look at something else that we haven't right about and that is fracking and this is also part of that whole federal reserve zero percent interest rate thing but the next financial crisis lurks underground its name fracking fueled by debt and years of easy credit america's energy boom is on shaky footing this is a headline actually from the new york times bethany mclean the one who outed enron a warrant before they collapse but this chart is quite interesting because here is whe

to follow on what kevin mentioned, i was looking at the federal reserve bank of atlanta statistics and they are predicting for the third quarter even stronger gdp growth rate than the second quarter. that is a testament to how strong this economy is. you have asked us to focus on jobs, more jobs, and even more jobs and since the election, this economy has created 4 million new net jobs. that is incredible. we are around the table because for the first time since we kept this data, we have had not for one month or two months but for five months in a row more open jobs than we have individuals looking for jobs so we have this skills gap. everyone here is focused on how to empower the american worker. with the skills needed for for the smarter economy, for the jobs that are out there. you asked us and you formed a task force and apprenticeships, that task force to his work and delivered the report to you in six months in may. those are conditioned have been implanted in july. and the applications for these new industry recognized apprenticeships are now pending notice and comment. so far

plus, later on in the program, the president and ceo of the federal reserve bank of dallas, robert kaplanjoining us coming up. but first we have the big headlines impacting everything from wall street to main street. geri? >> thanks, maria. hurricane florence has arrived and wreaking havoc in the mid-atlantic. the storm made landfall friday morning, pounding the

thank you. >> former new york federal reserve bank president jim geithner or was appointed to serve as treasury secretary during the obama in administration. he announced a new effort and at stabilizing the financial markets. following his remarks we will show you an event with secretary geithner. last fall as the crisis intensified, congress acted quickly and courageously to give your government the emergency authority to help contain the damage. your government used that authority to help pull the financial system back from the edge of catastrophic failure. those actions were absolutely essential. they were inadequate though. the force of government support was not comprehensive or quick enough to understand acupressure brought on by a weakening economy. payerge amounts of tax assistance provided to the same institutions that help cross -- cause the crisis added to it. this turned to anger. boards of directors at some institutions continue to award rich compensation packages and lavish perks to senior executives. our challenge is much greater today. the american people have lost fait

thank you. >> former new york federal reserve bank president tim geithner was appointed to serve as treasury secretary during the obama administration. on february 10th, 2009, he announced a new effort aimed at stabilizing the financial markets. following his remarks we'll show you a recent event with secretary geithner others marking the ten year anniversary of the financial crisis. >> last fall, as the crisis intensified, congress acted quickly and courageously to give your government the emergency authority to help contain the damage. your government used that authority to help pull the financial system back from the edge of catastrophic failure. and those actions were absolutely singh shat bull they were unanimous kuwait. the forced government support was not comprehensive or quick enough to withstand the acute pressure of a weakening economy and assistance provided to the same institutions that helped cause the crisis added to public distrust and this distrust turned anger as boards directors at some institutions continued to reward rich compensation packages and laugh -- lavish perks t

it was in the banks that were not overseen by the federal reserve. the banks boughtpu debt and it on their balance sheets and werx sed to it, but the did not issue the debt. we have these tentacles in the system that we didn't see. but we want to do now is picndup the ro look underneath it in the garden and see what is underneath, because that is where the bugs and the problems are. that is one of the things we didn't do back nd we have to be vigilant about doing today.if jane: bue do spot the problems before they, what can governments actually do, individual governments, given the interconnected nature of the global economy? rdane: this is the really part, because what we really need to do is share information, the idea was to coordinate financial regulation. there has been some of that, not a lot of it, so that wetron't are. things are going on in london we didn't know that harmed us here. us here.gry about there was a lot of these connections that were global in nd the rate at which it spread around the globe underscore that. we are undermining our

circumstances, unquote, the board could authorize a reserve bank to make loans to a nonbank where loans were cleared to the satisfaction of the federal reserve bank, unquote. this authority to loan to nonbanks is quite separate from the 10-b discount window authority to lend to banks. interestingly, other major countries do not divide authority between lending to banks and nonbanks. rather, they divide the world into normal and emergency lending. after the crisis, lender of last resort authority was, and it continues to be widely attacked as bailing out wall street. this is despite the fact that taxpayers benefited from these loans due to additional federal remittances but much more importantly, the country avoided what would have been a much more serious crisis. but this counterfactual is always difficult to conclusively prove. what would have happened if you didn't do it? now, legitimate moral hazard concerns have been raised about this lending. but the beneficiary of -- beneficiaries of this lending were largely victims of a panic. without panic, withdraws from these institutions they would have been solvent. clearest exception, h

the atlanta fed says 4.1%, whereas the new york federal reserve bank sees it totally differently at 1.98%. let's try and clear some of the smoke out of the air with the white house council of economic advisers, who joins us in a fox business exclusive. kevin, i know there's rough weather coming your way. we wanted to get to you right at the top of the show. let's begin with this. there's something that hasn't been put up on the screen yet because there's no chart or picture to really show it, but it has the potential to neutralize some of the negatives and that's the unleashing of animal spirits. consumer confidence and spending are up, unemployment at historic lows. can you quantify the power of that for the u.s. economy right now? >> right. everything is firing on all cylinders and you could probably hear the thunder and lightning rolling in. the economy is so good, i'm just going to keep going. but it's really true. we have gdp growth north of 4%, i think the atlanta fed number is closer to what our number is than the new york fed number, because there's all this inventory rebuilding t

and the heart of the crisis fighting effort, the federal reserve bank of new york. >> reporteund zero 9/29: the new york fed. here is where the system was saved. and what the new york fed decided to do, what the united f stateral reserve system decided was play the classic role it's always intended to play. to be the lender of last resort to american fincial institutions. >> yeah. there's a lot of emphasis for obvious reasonon the conventional side of fed policy in '08. the bailout, taking equity stakes in banks, quantitative easing, but what really made the difference in the survival of the american and thel banking system in september 2008 was indeed liquidity provision, to take an asset which is very unattractive to sell in the moment of the crisis b its value may be suspect. >> reporter: "assets" like loans backed by failing mortgages, which the fed took off the hands of the banks. >> and to give you in exchange a cash loan that will tide you over for a matter of days, weeks or months. >> reporter: ready cash." liquidity." and this saved the american financial s

federal reserve bank has announced it will raise interest rates overnight to range between two point zero and two and a quarter percent the raise is the third this year and has been spurned on stronger g.d.p. growth which hit four point two percent last quarter the fed has been slowing slowly tightening its monetary policy over the last several years marking an end to its effort to support the u.s. economy after the financial crisis the hike is a vote of confidence in the u.s. economy by fed policy bosses despite uncertainty on world markets and the trade conflict with china the fed also signaled there might be another rise coming this year and up to three next year. the c.e.o. of diamond is leaving his post next year he will go on to head up the company's supervisory board is the budget comes at a time of turmoil in the german car industry as it struggles to respond to the emissions the prospect of diesel bands and the threat of tariffs from the united states such as been at dime novel for decades has been at the steering wheel for the last twelve years will be replaced by the first

federal reserve. hank paulson, who was the secretary of the treasury in the bush administration, and tim geithner, who is president of the federal reserve bank of new york and then secretary of the treasury and the obama administration. they will be interviewed by andrew of the new york times and cnbc who will be soliciting questions from the audience following the conversation. we are on the record and live. before we begin, i like to welcome andrew, the janet yellen professor of finance and management at the yell school of management and the director of their financial stability ofgram -- yale school management and the director of their financial stability program. morning.ood you are here to see what is the main event to catalog and explain the actions taken during the financial crisis by the official sector in the u.s. these actions were taken by these three individuals. while we can argue and discuss, and we will whether any of the specific things they did were good or bad or worked or didn't work, what is not in dispute is the extraordinary partnership that was forged by the three of two, the cooperation across different administration

first, we're going to speak to the president of the federal reserve bank of dallas, yes, the federal y & company. historic day, ladies and gentlemen. this interview could move the market. copd makes it hard to breathe. so to breathe better, i go with anoro. ♪ go your own way copd tries to say, "go this way." i say, "i'll go my own way, with anoro." ♪ go your own way once-daily anoro .to . anoro is not for asthma. it contains a type of medicine that increases risk of death in people with asthma. the risk is unknown in copd. anoro won't replace rescue inhalers for sudden symptoms and should not be used more than once a day. tell your doctor if you have a heart condition, high blood pressure, glaucoma, prostate, bladder, or urinary problems. these may worsen with anoro. call your doctor if you have worsened breathing, chest pain, mouth or tongue swelling, problems urinating, vision changes, or eye pain while taking anoro. ask your doctor about anoro. ♪ go your own way get your first prescription free at anoro.com. ♪ stuart: who played the beatles? getting better all the time. can say tha

the banks have a lot bigger capital buffers which t meansy have more cash on hand to withstand the next crisis. the federal reserve and other federal banks have gotten more interest in what's happeni in financial markets. in facts, they run stress tests annuo make sure they can simulate what happened ten years ago, if it happened again banks could make it through that crisis. those three things really helped to improve the stability of the financial system and should mak the system safer for investors. >> you know, every crisis different. they never repeat. they're never exactly the same. it would be easy t protect yourself against them if they were, but they're not. bloomberg, for instance, this morning posed the question whether or not is the next bubble to burst in the next crisis. so as an individual investor, are there t some basicngs you can put in place to safeguard your portfolio against a looming crisis that you may not be able to recognize immediately? >> yes, absolutely. i mean, one of the best ways to protectourself as an investor is to be diversified. make sure you don't have all of your money in the