has advised me of his decision not to accept a third term as a member and chairman of the federal reserve boardaccepted mr. volcker's decision with great reluctance and regret. it's my intention to nominate dr. alan greenspan to a four-year term as chairman of the federal reserve. schoumacher: on his first day in office chairman greenspan revealed his wish list -- a dollar which is always stable interest rates which stay low, and employment which stays high. schoumacher: his first action as chairman of the board of governors was to reaffirm volcker's tight money policy a long-range policy that most economists believed was crucial to maintaining orderly economic growth. but if there was one sector of the economy that was far from orderly in 1987, it was the stock market. 40. asia, 784. schoumacher: greenspan feared a collapse. but what could the fed do? securities analyst roger kubarych. when chairman greenspan came in office in august one of the first things he did was to launch a series of studies -- call them war games if you like -- that did include both the board staff in washington, member

it's also used by the federal reserve board to operate monetary policy by controlling the money supplyher by buying or selling government debt. when there was some prospect that we'd actually pay down the debt to very low levels, the federal reserve actually got quite worried and wondered how they would run monetary policy. now, they can run it in ways different than buying or selling the deb but almost all those ways are undesirable. well, the real problem with the budget deficit usually isn't that it's a crisis. it's not a wolf at the door, it's termites in the basement. if i had to think about budget deficits and what they mean and what i've thought about them over the years i have to say i've changed my mind. initially, like most people, i tended to think of budget deficits -- again, budget deficits outside of times of recession, when they're good. budget deficits in normal times, people tend to think about as something that's going to blow us into inflation. the government spends too much takes in too little revenues. there's too much demand chasing too few goods. you get a big in

federal reserve responded to legislation passed by congress in december of 2014 related to the scope of the federal reserve small bank holding company policy statement. specifically the federal reserve boardissued an interim final rule and a proposed rule to implement the public law 113-250. effective immediately the interim rule adopted by the board excludes small savings and loan holding companies with less than 5 million in consolidated assets which meets certain requirements from the board's consolidated regulatory capital requirements. thus putting them on par with similarly situated bank holding companies. the federal reserve board also issued a notice of proposed rulemaking that would raise the asset threshold from 500 million to 1 billion for determining applicability of the small holding policy statement. and expanded its scope to include savings and loan holding companies. it facilitates the transfer of ownership for community banks by allowing holding companies operate with higher levels of debt and that's lower levels of consolidated capital than would otherwise be allowed. additionally the federal reserve board took immediate steps beyond what was required in the legislation

the federal reserve board decided to fight it. in december 1965 they raised the discount rate. son hit the ceiling. he announced publicly he would call bill martin, the chairman of the federal reserve down to the ranch for a tongue-lashing. but raising the discount rate didn't keep inflation from growing. it breaks my heart to go shopping. the war kept growing, too. when neither the administration nor congress applied fiscal restraints, the fed decided to go it alone again. they used an open-market operation. in january 1966, they sold government bonds to tighten up the nation's money supply. interest rates rose dramatically. soon, any business sensitive to interest rates was caught in a credit crunch. the housing industry was hardest hit. the full effect of the fed's solitary action took hold in early 1967. inflation dropped, but at a terrible cost-- a zero growth rate for the gross national product. to economists, this was an impressive lesson. the fed was very effective in 1966. the discount rate increase and the reduction in the rate of creation of bank reserves drove up mar

fred schultz was federal reserve board vice-chairman in 1979.n you have inflation, money becomes worth less and financial assets of bonds and stocks don't respond as well. you need to go out and buy things. you need to buy art, stamps, gold, land, and houses. people got in the habit of going out and borrowing all they could borrow and spending all they could spend. it takes a long time to change the way people carry out their activities. in the 1970s people were convinced we would get inflation under control, and only in the latter part of the 1970s, '78 and '79, did they become convinced that we wouldn't. that's when inflation really began to heat up very rapidly. in 1979's closing months federal reserve chairman paul volcker announced a new tight money policy to counter inflation. he was forced to abandon this in 1980's recession. 1981 brought a new president and renewed determination to clamp down on inflation. but the reagan administration wanted it all, both lower inflation and higher growth. the fed sent out warning signals. we kept saying

. >> former federal reserve board chairman ben bernanke is the keynote speaker today at an event hostedy the center on budget and policy priorities. it will include a discussion with economists about policies that can help restore and maintain full employment in u.s. labor markets. we'll have that live at 9:30 a.m. eastern here on c-span2. >>> now the supreme court oral argument on whether texas officials must issue a license plate with the confederate battle flag on it. in walker v. the texas division of the sons of confederate veterans the court is considering if the state can veto messages on specialty license plates or if that violates free speech rights. this is an hour. >> we'll hear argument first this morning in case 14144, john walker v. the texas division of the sons of confederate veterans. mr. keller? >> thank you mr. chief justice, and may it please the court messages on texas license plates are government speech. the state of texas etches its name onto each license plate and texas law gives the state sole control and final approval authority over everything that appears on

board reforms fit in the u.s. regulatory system? my question is, does the federal reserve treat them as mandated directives or suggestions or what? and what statutory basis does the fed have to implement the financial stability board's reforms verbatim? do you think, further, that the fsb decisions are important enough that they should be fully vetted by the fsoc before implemented in the u.s.? that is two or three questions but they are all tied. >> so a number of regulatory agencies include in the fsb including the administration and other regulators. >> sure. >> nothing that is decided in the fsb has effect in the united states unless the relevant agencies propose rules and those are publicly vetted through the normal public comment process and our rule-making process. so those recommendations have no force in the united states. unless we go through a rule-making process. but there is a good reason for us to participate in the internationalz financial organizations, if we take action in the united states and other major financial centers don't act in similar ways, we wi

. >> woodruff: the federal reserve board opened the door today to raising interest rates, after yearscord lows. the central bank's latest statement dropped the word "patient" in describing its attitude toward the economy. but it also said the job market has to improve, and inflation has to move closer to 2%, before any rate hike. fed chair janet yellen: >> today's modification of our guidance should not be interpreted to mean that we have decided on the timing of that increase. in other words, just because we removed the word patient from the statement doesn't mean we're going to be impatient. >> ifill: on wall street, the fed's statement signaled an interest rate hike may not be imminent after all. the dow jones industrial average gained 227 points to get back above 18,000. the nasdaq rose 45, and the s&p 500 added 25. >> woodruff: terror rocked tunisia today, as gunmen killed at least 20 people, most of them western european tourists. it happened at the national bordo museum in tunis. in addition to the dead, some 50 people were wounded. security forces stormed the museum about two

it calls into question, why are so many people calling for the federal reserve board to raise interestates now? there are many communities in this country that have not really experienced a robust recovery and won't unless we get the unemployment rate down to 4.5%. there is no reason we should stop or slow the recovery at all until we have seen some wages growing roughly double what they are now. you have to wonder why people are calling for raising interest rates. betty: it does seem strange. we are far from that 4% rate. thank you so much for joining us. ♪ betty: you are watching "in the loop." good morning. i'm betty liu. hillary clinton has spoken. that doesn't mean anybody feels they have gotten the answers as to why she used a personal e-mail account. dan pfeiffer tells charlie rose this will all go away soon enough. >> republicans have looked at hillary for a long time. there is a vacuum in our political discussion right now. once there is enough and running candidate, this will be faint memory. betty: will it really? joining me our political strategists from both sides of the a

. ♪ ♪ resort -- federal reserve board chairman ben bernanke, go to www.c-span.org.> we turn once again to the iranian nuclear negotiations hours before the deadline that has then set by the party although coming out to cbs news the deadline could be extended. but for the next hour or so we will be discussing this issue and the phone lines are open. we are joined by a mark dubowitz foundation a defensive democracy and an author and former official of the state department department, hillary mann leverett. if the deal does come together why should the west trust iran? >> guest: that is not have relations have been. i think ronald reagan famously said the trust but verify and this is the enormity of the opportunity. it is the opportunity for the united states to have exclusive monitoring with the mechanism that leads to with the negotiation with a vested interest and they think that is the only thing that can work. what we tried with iraq with israel now we have that disaster. and it went badly not just because of the invasion but we were forced to trust washington but

they were following her comments on the dollar but also trying to understand where the federal reserve board was going in terms of interest rates. and the fomc is trying to ballet couple of things. they have two clear mandates. they need to keep inflation low, but they also want to keep unemployment low. they're constantly trying to balance those two things. wall street is watching to see whether the federal reserve thinks that the economy is overheating and is going to need to raise interest rates dramatically quickly. it doesn't appear to be the case and, therefore, you saw the markets rallying. >> so, connie i know for folks who are not cnbc watchers they might have said what just happened in nerdland. why are we talking about this idea of the dollar and global marketplaces. i teased about a european vacation becoming more affordable but in a real way for ordinary americans earning wages, what does the strength of the dollar mean one way or the other? >> the strength of the dollar really is tied to the ability of people to manufacture in the united states, which means jobs in the united s

. >> this morning, former federal reserve board chair ben bernanke is expected to talk about achieving full employment and labor markets and what it would mean for the u.s. economy. i think this one at the center for budget and policy priorities, his keynote address will be followed by an economist panel discussion about employment policy. live coverage on c-span2 should get underway in just a moment. [inaudible conversations] good morning everyone. >> good morning. >> i am this -- i want to welcome all of you to this exciting event sponsored by the centrist full employment project. i want to particularly thank the open philanthropy project for its very generous support of the full employment project at the center which has made today's event possible. many of you know the center on budget for its work on pressing issues to reduce poverty and inequality, and for our contributions to important budget and tax debates both washington and in state capitals. under the leadership of jared bernstein, the full employment project has broadened our work to include various economic policy issues

carefully at what they're doing and i'm not oneand i'm not one to the flex in the direction of the federal reserve boarddon't think they are unconstitutional. they do have probably more power , and a number different areas. host: georgia is up next year. steve. caller: how are you doing this morning? i just want to say that the koran says that iran is not supposed to negotiate with the great satan. in 2011, the democratic convention, they voted god out of the platform, 304 times so that the president would run. wouldn't that be against them to negotiate with the president? shouldn't they be negotiating with the republicans that fear god? thank you. guest: someday, you will have an expert on the theology of shiite islam who can tell you whether or not the iranians are violating their own rules by sitting down with us. ice thi god is a lot -- i think god is alive and well in both the democratic and remote and parties. host: don from houston, texas. caller: good morning. i too have a question directly related to the federal reserve. related to the federal reserve. as you know, congressman, our revenues fro

host: to watch the entire event with former federal resort -- federal reserve board chairman ben bernankego to www.c-span.org. once again, we turn to the topic of the ongoing iranian nuclear negotiation just hours before the deadline that has been set by the parties. some reports coming out from cbs news that the deadline could be extended for a couple of hours on some of these sticking points. for the next hour or so here on the washington journal, we will be discussing this issue. we are joined by mark dubowitz of the foundation for the defense of democracies and hillary mann leverett, author and former official of the state department. if a deal does come together in the next couple of hours whatever it may be, why should the west trust iran to keep its word? guest: i don't think the rest -- the west should trust iran or anybody. ronald reagan famously said, trust but their five. and this is the enormity -- but there if i -- trust but verify. and this is the enormity of the issue, the agreement and that iran is abiding by their agreement. that is the only way it will work my negotiated

reserves. >> the board will consider the federal reserves the organization has. those are in place for very catastrophic emergencies such as an earthquake. the consumption is less now so they want to charge you more? like refinery. they change you more although oil is plummeting. another way of taking the people's money away to pay for other things. >> final decision is expected in may. >>> today, 5000 people are coming together in san francisco for huge event to empower women. the business women of california conference is underway at the mascone center. crews have been setting up. the conference is 26 years old. attend yankees have been then to call it life changing and some consider it a chance to meet mentors. the founder is jackie speier who started it because women needed a place to net working. we are a proud sponsor. stop by our booth and say hole low. the key note speaker is an acclaim author and cheryl jennings is the conference host. i will enthere with leyla gulen and amy hollyfield. cheryl is the host. great even. we are happy and inspired. >>> now t

furthermore, for those who find a job in that to-29 category, the federal reserve board survey of young work i.r.s. -- workers report only 20% of those find jobs closely related to their field of study. they need to be better invested so they can enter the workforce truly equipped and without needless delay and countless dollars spent on a degree that leaves them jobless. this is a major challenge to our education system and the president's proposal falls far short of the reforms needed to address these challenges. let's look at growth and productivity absolutely essential if we're going to have a growing economy and provide more jobs for more people. as it stands, the united states today -- the united states remains one of the most productive economies in the world. we can treasure that. we can celebrate that. however, much concern remains about whether america will be able to sustain that productive why i of which it -- productivity of which it proved capable over the last half century, but there's a real question today as to whether that can be sustained. business creation, entrepren

investigators on wall street received good news after the federal reserve released the economic forecast. that drove stocks up across the board but could that be short-lived. the fed concluded with all signs pointing to an e eventual hike of interest rates later this year. let's go to london. steve, obviously this is going to be the first hike in a long long time. what's the time frame for it many. >> reporter: that's the big question. the good news was that chairman yellish in her conversation, he was looking all day to point not just the very strong headline employment rate as well. and obviously the unemployment rate has been coming down but she's also looking at inflation. the strength of the dollar the weight of manufacturing as well. she was hulkish in waking away the word patience. there could be a june or october rate hike but it's thereafter that it gets interesting. it's the pace of the rate hikes that everyone is looking at and they are saying after this meeting it's been lessened a bit. yes a hike but not as aggressive as previously thought. and raising wages. $9 per hour is going to be what it's going to be. that

it's both the board and all of the federal reserve banks and the consolidated federal reserve system.gets the shout-out. that was janet yellen. that shout-out is a nice starting point for deloitte's brand-new ceo cathy. that's terrific in and of itself to say that deloitte is auditing the central bank. you have a huge percentage of all fortune 500 companies >> yes, we serve many. our test businesses. our consultant businesses. we're pleased to be helping these companies as they face the rapid face of change around technology and regulatory. we're pleased to be serving them with things like innovating around digital. cyber, cloud. we're proud to be serving these companies. >> there's regulation. these clients of yours are facing so much now. and you guys also consult. it's not just auditing. what a huge endeavor with all these companies and trying to make them compliant, but also creative and successful. i mean, what is the number one thing they have to do today, even for non-clients that you would say to companies, i can't believe companies do this. it's the number one thing they shou

you've got the federal reserve, stanley fisher speaking at noon. oil down across the board. again, saudi output rising to a near record 10 million barrels a day. of the 50 or so oil related stocks that i follow only about ten, 20% are up over the past month. all down more than 20%. goodrich petroleum down more than 40%. one group that has been completely i think ignored, the offshore drillers. they're down worse, when you've got the -- hercules offshore. you can't even mention it now. >> all difficult. ensco, a very modern rig system. the number of rigs coming on is shocking. people don't understand it's about supply not necessarily demand. >> the ten-year treasury yield at 1.92% or so. again, down from our recent highs. but let's not forget jim. yes, we're down in the near term, but we're actually higher than we were by about 30 basis points for our lows so far in the year. >> excellent. >> also in our road map this morning, shares of gilead sciences are down. could be the big stock story of the day. the company warning of complications related to its hepatitis c drug. chuc

formerly of the board of the federal reserve bank of atlanta's miami branch. jeffrey cleveland from payton and regal. our even steve liesman and rick santelli santelli. steve, pay attention here. are you with us? he's not. jeffrey cleveland, you're the other economist -- >> i'm here bill. >> anies a teric or icic icic icic -- any asterisk asterisk? >> we think this is a terrific report. when i talk to clients and investors, they don't seem to want to believe that the u.s. labor market is strong and i think after 12 jobs reports above 200,000 jobs per month with the six month average just shy of 300,000 jobs per month, the unemployment rate at 5.5% what's not to like? if you pointed to one thing, it might be wage growth but wage growth, we think that will come. we think with better momentum in nonfarm payrolls lower unemployment rate, it's just a matter of time. i think sometime later this year wage growth will pick up bill so that will give the fed an opportunity to hike short-term interest rates. >> is the fed suddenly behind the curve, tom porcelli. >> sorry

board is down 169. almost a full percentage point. despite this the federal reserve reports the net worth of u.s.ombined wealth grew by $1.5 trillion in the fourth quarter last year to a total of nearly 83 trillion. important to point out the report is not adjusted for inflation. peter barnes has this news. what else? >> household net worth is now 25% higher $16 trillion more than in 2007 prerecession peck due to the stock market's big six-year rally. last year the value of homes which is most family's most valuable asset rows 5.5's. ias climbing to 17 spring 401ks increased. >> despite the report, some financial experts say we're really facing a retirement crisis. >> you're right. experts point out that rising stock prices have more helped the retirement accounts of older higher income people for many others it's still a crisis. the national institute on retirement security released this report just yesterday. it said that nearly 40 million households have no retirement account of any kind, and also said the median balance in a retirement account for a typical household was just $2,500. >> it's

it's both the board and all of the federal reserve banks and the consolidated federal reserve system.hey do exist? >> they do exist. >> now, you brought up the length of time we've been doing this. i've been at this 31 years. that is the single silliest question i have heard in my career. does the fed have the bonds that it said it did. that would mean that the treasury has sold bonds to no one over the last several years while the fed was doing quantity takive easing. that would be somewhat of a hole in public finances if the fed had not been purchasing those bonds. when you get congress looking over the fed's shoulder on monetary policy and this happened during the nixon administration where the white house was, you get policy and manages takes thaw don't want. next best thing to a hard money standard, which a lot of -- >> the fed has has become way too political ion indirectly. >> ron insana great piece. cnbc.com. steve, i promised you the beige book discussion would not be boring. i just want to throw a snow ball. >> better than you. >> throwing snow balls. >> thanks guys. >>> ove

harker will take over as the new president and ceo of the federal reserve bank of philadelphia on july 1st. he was already a member of the bank's boardctors. harker has been the president at the university since 2007. >> monday nighttime to see how traffic is rolling out there or maybe not with the ice. >> all right if anyone knows matt pelman does. what do you think, matt. >> i know and i don't know if you want to know what i know but i'll let you know anyway. on 295 southbound side we're knowing about some really slow speeds. just 11 miles per hour from near route 38 through an early accident scene past the white horse pike. the good news is that crash just cleared. all lanes are opened but 295 southbound still probably not where you want to be at this point. also watching a crash in moorestown along borton landing road at courtland shire drive. plenty of slowing on 95. this is the northbound delay by the betsy ross bridge. we had an earlier broken down vehicle northbound in the work zone by cottman. that's gone now but of course the slowing persists and southbound you're seeing some delays as well due in part to sun glare out ther

he was of course the chair of the federal reserve from 2006 to 2014 around a member of the fed boardernors before that. he has made more important contributions to our understanding of macroeconomics, economic history and monetary policy than i have time to note here. i have always thought we were extremely lucky to have him where he was during the great recession. the other thing many of us appreciate about ben harks back to the old adage, if you really understand something you can explain it to anyone. ben has tried harder than many who sit in such influential positions to be extremely clear to avoid obfuscation and tell it like he sees it. i was one of many highly influenced by his important insights decade ago what he labeled global savings glut and impact on economies across the globe. you can imagine my excitement when ben graciously agreed to reflect on those dynamics today. please welcome fellow blogger ben bernanke. [applause] >> good morning. thank you, jared. thanks for the center on budget and policy priorities for this important conference on employment jobs. you know ec

you've got the federal reserve, stanley fisher speaking at noon. oil down across the board.

boards of directors need to be much more representative. currently there are 108 directors of the regional level on the federal reserve.ts are held by representatives of worker organizations by labor union representatives. 87% of those seats are filled by bank and corporate leaders. they have a very different perspective on wage growth. for them it's labor costs. . that's inflation as opposed to wage growth which drives the economy. >> so much more to say on the fed. in the meantime, thank you very much. >>> up next, back to melissa harris-perry and selma, alabama, with the passtor of brown chapel church. ♪ okay, you ready to go? i gotta go dad! okay! let's go go, go, go... woah! go right, go left, go left stop! now go... (shouting) let's go!! i gotta go! can i go? yup! you can go. (beeping alert) woah! there you go! way to go! lets go buddy, let's go! anncr: the ford fusion. we go further, so you can. well, a mortgage shouldn't be a problem your credit is in pretty good shape. >>pretty good? i know i have a 798 fico score thanks to the tools and help on experian.com. kaboom... well, i just have a few other questions.

board. it is not pretty. holding above 18,000. the reason it is down so much is that jobs report. if there was an encouraging top line the investors think the federal reserveanet yellen will not be keeping interest rates at zero for that much longer. let's get to gas. still going up. not too much overnight. 245 is the average for regular. thirty-eight straight days that gas has gone straight up. new information on hillary clinton's e-mail. it is from a group of white hat hackers. clinton appears to establish multiple e-mail addresses on her private server. if you look closely you can see it. it is not all black. telling her staffers not to use personal e-mail for oafish business. citing security concerns. mary kissel. it is friday. she is with me. we have seen this movie before. she has always been in trouble. why would it be different this time? >> this is only a week after the last scandal. thinking money from foreign governments. i do not think this one the e-mail scandal will go away any time soon. >> she is react to intuit. you know that she thinks it is serious enough. >> a tweet? >> she is banking that the international media will just say, it's the

federal reserve considers to be full employment. a lot of that job growth was in the private sector. 288,000 overall again, above consensus forecast. across the boardwe saw professional business services leading the way. generally good paying jobs followed by retail and even construction adding about 29,000 jobs, despite the weather. and the expectation was, frankly, weather and layoffs in the energy industry due to those falling oil price was going to be drags on the employment report. so very strong report. when you look at the breakdown of that 5.5% unemployment rate the black unemployment rate 10.4 percent. hispanics 6.6%. asians, 4.0% about the same. no real change there. the final missing piece, however in all of this jose still no real signs of wage growth. up just 2% year over year. >> cnbc thank you my friend. good to see you. much more on the jobs report from president obama"abrams & bettes beyond the forecast" -- president obama's top economist in about han houran hour. >>> and hillary clinton, storing sensitive information even if it wasn't classified on her private server. no such provision against routine use for government work as lo