federal reserve bank of cleveland. mckee thanks to michael for that wonderful interview. we do want to go through some of what the voting members this year said. let's bring in our panel of damien sassower and matthew. he covers monetary policy. i want to start with some of the later comments on inflation. it was very interesting what she said about the economy getting healthy. then she went to talk about a range on inflation, said that that had not communicated well this idea of symmetry, that they were willing to go above or below. she presented the idea of a range, but did not define the upper or lower bound. we are getting into this interesting conversation, with the fed presumably on pause, about this longer-term policy framework they are debating. the interviews that you have seen on bloomberg today delineate the two sides of the debate, the way it is shaping up. on the one hand, charlie evans was saying we should be letting inflation go out to maybe 2.5% of the should be overshooting the targets since we have been undershooting for so long. loretta mester is on a d

doesn't seem to be any end to this down during the 10 years i just talked about there the federal reserve bank in the u.s. alone printed over 16 trillion dollars to keep the zombie banks and zombie corporations alive remember a lot of these corporations report no earnings at all they're only kept alive through stock buybacks and cash infusions from the central bank but my question is i don't see that ending anytime soon because the central banks could very easily buy another 15 to try to 20 trillion dollars worth of bad assets they all work together that all the major central banks work together they don't there's no sense of competition in the world like david ricardo talked about in during the 1st years of classic economics it's all collusion and they're all buying horrible junk and they're all working together and they have printing presses a so why with this and any time soon things don't always end when you expect them to and we just said this bubble has been going on for 10 years you should have collapsed 2009 at the latest or 7 even it didn't and you know the theory is very simple if yo

what might be happening the rest of the world might be in distress but the fact is the us federal reserve bank has been printing enormous amounts of money and it's going in lockstep with the increase in the nasdaq in the stock market because remember from mid september when the repo market turmoil erupted the fed started printing money and in the last $2.00 weeks the 2019 here were in 20202020 but they're still printing the last 2 weeks of $21000.00 they printed $450000000000.00 their asset their balance. expanded by that so let's look at that fed balance sheet moves up to 4.166 trillion highest level in 14 months over for him to the 6000000000 over the last 4 months quote in no says is this q.e. this is nothing like it drone powell had said october 8th 2019 you can see that it's a v. shaped recovery in the fed's balance sheet since you know the nasdaq as i said was a 40 percent nearly 40 percent so 60 percent of the gain and the nasdaq happened from that point let's revisit my ongoing theory which is that you've got really low interest rates down for 10 years near 0 or in some cases negative

what might be happening the rest of the world might be in distress but the fact is the us federal reserve bank has been printing enormous amounts of money and it's going in lockstep with the increase in the nasdaq in the stock market because remember from mid september when the repo market turmoil erupted the fed started printing money and in the last 2 weeks the 2019 here were in 20202020 but they're still printing the last 2 weeks of $21000.00 a printed $450000000000.00 their asset their their balance. expanded by that so let's look at that fed balance sheet moves up to 4.166 trillion highest level in 14 months over for him to the 6000000000 over the last 4 months quote in no says is this q.e. this is nothing like it drone powell had said october 8th 2019 you can see that it's a v. shaped recovery in the fed's balance sheet since you know the nasdaq as i said was up 40 percent nearly 40 percent so 60 percent of the gain and the nasdaq happened from that point let's revisit my ongoing theory which is that you've got really low interest rates now for 10 years near 0 or in some cases negative a

acting prime minister's office that the us is countenancing blocking iraqi's account at the federal reserve banky completely destroyed iraq's oil economy. what on earth is going on here? what does donald trump want from the iraqis? does he want to be their friend, or does he now see them as an enemy? 0n the economic front, the iraqi government has been cooperating with the us treasury to prevent the flow of dollars into iran, as part of the sanctions, because we are afraid that especially the quds force and the revolution guards use the hard currency they earn to expand their activities into and outside of the region. iraq has been very cooperative, and we think relatively few dollars have gone into iran from iraq. now that i'm outside the administration, i don't want to speculate too much. but i know that when i was doing myjob in baghdad, we were concerned that if the cooperation of the iraqi treasury or the iraqi central bank ended, that it would be much easier for iran to get dollars to iraq. and i think that is one of the main fears. because the goal of iran, of qasem soleimani, was not onl

we're going to keep your your oil revenues which turns out to be in a bank account in the federal reserve bank in new york not in baghdad and it shows that washington even donald trump who i agree with you had an instinct to speak at least to that part of the population that is sick and tired of endless war has is also awash with a sort of a colonial mentality towards other people and other people in other regions and that fits in very well with the with the agenda of the military industrial complex as if america can area gate to itself the right to be the ruler over all people everywhere that's the recipe for endless war that has to stop you know you tony i think what is so mystifying for and i mean if you look at it in a commonsensical way i mean when we look at these foreign policy interventions adventures around the world particularly in the last 2 decades when has it ever worked and if you even ask that question you're laughed out of the room ok i mean it's been 75 years since the end of the 2nd world war the soviet union is gone the warsaw pact is gone almost 30 years now why. why is nat

don't do that anymore in america though they didn't learn the lesson because they have the federal reserve bank which is the american version of the polar bureau and they target interest rates and they say we don't care how many companies go negative book value we don't care how much of a wealth and income gap we create we don't care how much of an environmental catastrophe we cause we're going to target the stock price based on us targeting money the value of money at the pole of bureau at 0 percent and the result will be the same that's their 3rd option of zombie companies but regarding this private equity model it also fits into what you're saying there is like all the evidence before you you know shows that you're their ideology except this is just mass hollowing out giant hundreds 200 year old companies across america sears you know all these huge companies that are just hollowed out and loaded with debt by private equity thousands of jobs lost entire industry destroyed by private equity. and our ideology we have to accept this sort of hyper normalization that this is everything's fine eve

in a new development, washington reportedly is threatening to block iraq from accessing its federal reserve bank account if it decides to kick american troops out of the country. this comes after the iranian missile assault on military bases where u.s. soldiers were being housed. protesters took to the streets in iran demanding the supreme leader step down. we have fox news team coverage. we begin with mark meredith reporting from the white house. >> president trump says he's closely monitoring developments in tehran as the protesters have taken to the streets against the iranian regime. we saw a tweet from the president that addressed the protesters. saying the government of iran must allow protesters to monitor. there cannot be another massacre of people, protesters nor internet shutdown. the world is watching. president trump says his decision to order the killing was about saving american lives. the president told laura ingraham soleimani was plotting multiple attacks. >> it could have been military bases. it could have been a lot of other things. it was imminent and all of a should be he wa

in a new development, washington reportedly is threatening to block iraq from accessing its federal reserve bankt if it decides to kick american troops out of the country. this comes after the iranian missile assault on military bases where u.s.

there are a lot of things like this, she did a great study from the federal reserve bank of atlanta in 2016 which found evictions, where they would be in atlanta if it was a black neighborhood. is there a memo, evict black people? we have not found it. during the bubble there was like wells fargo, they were making ghetto loans. we have not found anything like that with those guys but it was always the same. it would be great to have some whistleblowers. >> the differences with private equity, they don't sell them together. private equity is not a bank where you have adverse people down the street who may work at the bank versus private equity. we haven't found a memo because they don't talk other than to each other. >> if you read the book, i was shocked by how little entered into their mind except for money. it really is - disproportionate - >> there may be a memo. >> we believe that to the future. >> or not. >> what can we do to stop these home records since a lot of things are run by technology, the government doesn't care, the demise of law, nothing you can do about it, they are no

. >> the federal reserve bank of atlanta says 4.5% for the bottom 25%, so labor department reports 3.7%ear-over-year so wages are increasing if you look at when the president got in office and even to what could be reported for years end. the administration points out it could amount to $5,000 or so and then they also talk about the tax cuts real quick. >> here is the narrative we're hearing for democrats. they realize a recession isn't going to happen so what they are saying is the average american didn't feel the benefits but going back to campaign spending looking at the numbers of how much people spent in december, average americans are feeling the benefits of this economy. chris, beverly, mark stay there for a second. still to come, new year, same old grid lock, maybe. how problems on capitol hill could effect your trip for the pharmacy. who says they're raising prices? we'll tell you. most people think of verizon as a reliable phone company. but to businesses, we're a reliable partner. we keep companies ready for what's next. (man) we weave security into their business. (second ma

$42 billion over american consumers who have paid more for needed goods according to a new federal reserve bank study. this year brings small relief for the seven million lucky americans who live in cities and states that will see wage increases, but this is no thanks to the president or the senate republicans who still refuse to move the raise the wage act, the house passed last year, for the millions of workers who live at the lowest level of paid wages in our country. millions of american workers remain left behind bied $7.25 minimum wage or $15,8080 fundraise a full year's work -- a full year's work. the prices of everything have gone up, right? medicine, housing, food, cars, local taxes. there isn't a single congressional district in our nation where a full-time, minimum wage worker can afford a two bedroom apartment. how about that? factor in the rises of costs of health care and education and more american families continue to live at the breaking point. and going deeper into debt. this president continues to push for the repeal of the affordable care act despite no plan to replace it. h

judy: economists at the federal reserve bank, a respectedy institution, tve come back and they are sayinghe reality is, and i'm quoting from th latest, "u.s. tariffs continue to be almost entirely born on u.s. firms and consumers." peter:we the long a to that was published in an op-ed i did yesterday in "the wall stree the short answe iprthe economicession is bankrupt in terms of analyzing tariffs. they look at it as a very narrow framework. this has saved our a ste aluminum industry and brought billions of dollars in new investment into that industry. the threat of tariffs have brought billions more investment in from the to industry from th domestic companies like gm, but also bmw and others. we are working with mexico. we got more out of mexico in terms of helping border security. the tariffs have been the only thing that have gotten china to the bargaining table. you have to think about them strategically like this president does.they are working beautifully for america. judy: peter navarro, senior advisor to the president on trade. thank you. ♪ nedy: stay with us. coming up on theur,

federal reserve will resume interest rate cuts. that is going to be what contrived the market. >> we think about the most in thent central bank worldemains the u.s. federal reserve. the federal reserve calls the shots in terms of the liquidity aspect of the global transition market. it plays a secondary role to the fed. onry: some of our guests bloomberg tv talking about which central bank matters most. where is the federal reserve heading on interest rates in 2020? possibly nowhere. kathleen hays is here with what is expected and why. are we talking about this indefinite hold then? kathleen: that is certainly what they signaled might happen. they, being, of course members of the federal reserve at the december meeting. let's jump right into the bloomberg. you can see what they signaled having looked at the economy, having cut rates and decided to pause. you've got 13 of 17 members of the federal open market committee saying we will end 2020 with the key rate exactly where it is at the end of 2019. only 4 saying maybe we will hike the key rate once, so that gives you a pretty strong sense. jay powell, the fed chair, was asked a lot

so much so that the head of the us federal reserve, the central bank in america, mentioned it in hisech, jerome powell, after they decided on interest rates. he is quite concerned, as is everyone. as is everyone. precisely. he left interest rates in the us unchanged yesterday but the market took what he said as a signal that perhaps there was good card interest rates later on in the year. that's something that a lot of people were not necessarily expecting, but certainly if this virus were to carry on any chances of not just the us but other central banks around the globe cutting interest rates increases. that it is another unpredictable thing. something that is very ha rd to thing. something that is very hard to see where it might go. and you really get a sense that globalfinancial and you really get a sense that global financial markets have been grappling with lots of uncertainty, to use a cliche, for such a long time, this is a new element. absolutely. a new element and very difficult to predict stop by the daily telegraph has a picture of nigel farage waving a union jackin nigel

in a new development, washington reportedly is threatening to block iraq from accessing its federal reserve bank this comes after the iranian missile assault on military bases where u.s.

what they may or may not do, you're saying just do not go down the united states, but the federal reserve bankstralia, which, in the past, has had resistance to monetary easing, nevertheless, there are a lot of economists in australia and around the world to say that eventually that is where the rba will get, because they will cut rates a couple of times, because there will not be enough physical support, and they will have nothing else to do. stirling: that is correct. it is not just the central bank and the fiscal and central part of our government that needs to do the heavy lifting. we have the australian banks protected by constitutions. if the royal commission concluded anything, it was to repeal or bring back the policies. it has done its purpose, and again, we are now living in an economy with its longest history. in human we have the largest expansion in residential investments in australia, and, again, even if we do, if the reserve bank cuts rates or starts printing money or whatever they do, the banking and the private wealth side needs to be efficient, as well, and there is clearly

a central banks, whether emerging markets are developed markets are taking steps to preempt this impact? simon: i think it would be a policy mistake at this point for either the federal reservethe bank of england, other major central banks to change monetary conditions based on what we know thus far. inevitably, they will talk about being vigilant and the impact that may come in terms of economic growth from all of this and ensuring that they have the firepower to respond. nejra: simon french from panmure gordon stays with us for the hour. let's get to the first word news. president trump has announced his peace plan for the middle east. he said it is a win-win solution that will make the region safer but the palestinians have already said it is a nonstarter. the two state solution would leave an undivided jerusalem at israel's capital and give a green light or israel to annex existing west bank settlements. over >> we have studied the issue -- >> over the last couple of years, we have studied the issue, studied the region. we have been able to bring the israeli government together to agree on different parameters to put a two state solution option on the table for the pales

they are a federal reserve bank holding company. regulators do we believe that we don't think bank regulators will sit by the side if there's going to be an enforcement action they have to handle, that will be announced at the same time >> i want to go back to bank of america and fact that shares are down down 2% today. do you think it would be like this if it hadn't had a run-up in the months before hand? what do you think of valuations here >> the stock has had a great run. there's some profit taking and one of the things that we're seeing and this could benefit the custody banks such as bank of new york or state street reporting later on, the wholesale deposit funding companies, they soaw costs fall faster than consumer deposits and bank of america is a strong consumer deposited orientated company. that's why they suffered more than jpmorgan yesterday. and so to us the stock has run up nicely. this company is still, you know, long-term one of the investments that people should know because of the strength of their franchise in th

a question is drawn from the federal reserve bank designed to measure people's access to savings in the event of emergency. you may have heard 42% of the u.s. population couldn't access $400 in an emergency. we asked that same question. our finding higher figures in san francisco compared to the national figures as well. we don't ask in the survey questions about housing. that could turn the survey into a longer survey. we will get at those in the in depth interviews to tr try to understand those circumstances. we will have the information how many people are commuting in here to work but living in far-flung places. at santa cruz the students come up for the weekend, work 16 hours, sleep in the car, work 16 hours straight and then come back to school. that is tough to be living in this housing cost with these labor market conditions. >> i want to say thank you. this is fascinating. i also have -- it helps itself these preliminary findings about the impact that the economy has on our income and wealth gap. i ask every time on a slide i ask more questions. what is the earning gap to meet

the trump fed is starting to echo those warnings with reports out of local federal basks, federal reserve banks. and it's not just big institutions that are grasping the risks of climate change. i visited louisiana, wyoming, and colorado last year to hear about climate change. and see what red and purple state americans are doing about it. and the answer is plenty. in louisiana sea level rise and subdance are mega threats. a meant a hunter and fisherman whose personal efforts to restore marshlands have let his lands rebound. over 30 species of birds just while we were standing around were counted waiting to board the boat. the sights and sounds of a healthy marsh were an encouraging reminder of nature's ability to find a way to not only survive but to flourish if we give her a chance. in wyoming, well, don't get me wrong. climate change isn't always a popular subject in wyoming. the state is basically run by the fossil fuel industry. but there i met a younger generation that really gets it. i will not forget the determination of leading winter sports athletes in jackson fighting to preserve the

a question is drawn from the federal reserve bank designed to measure people's access to savings in the event of emergency. you may have heard 42% of the u.s. population couldn't access $400 in an emergency. we asked that same question. our finding higher figures in san francisco compared to the national figures as well. we don't ask in the survey questions about housing. that could turn the survey into a longer survey. we will get at those in the in depth interviews to tr try to understand those circumstances. we wills if we canapture them as organized labor workers and how we can then offset move with this 21st century economy of delivery but offer protections, employment protections, living wage job, benefits as we move into we understand more delivery. what are the mechanisms to bridge, i think, the gap of this income cap knowing that -- income gap. i meet with the restaurant industry. food delivery is killing them. they can't exist without it. they are paying them so much. this whole gig economy about who the money really is flowing to and how they are so i think part of it is work

so in 20082009 when you had fairly close and important policy coordination between the federal reserve in the bank of england in the european central bank bank of japan for example we're a little bit worried that in the event of serious economic problems in 2020 you're just not going to get that sort of policy alignment whether it's monetary policy or fiscal policy these multilateral solutions are going to be much much harder to come by i thought would you would you agree with that well we've had 15 trillion dollars worth of investment if you like spending from central banks globally since the financial crisis began and the result has been affected leaving a lost decade. so it hasn't really done a great deal of but from a massive inflation of asset prices which has led to inequality which is that the political problems which is you know so we'll see where that's actually ended up leading. it has got to the stage where you can only stretch a piece of string that far and we do and in the central banks while the central banks have been working overtime in cutting in easing monetary policy it's allowe