. >> before joining, he was a senior economist at the federal reserve board. any of you who know kevin or

leading the contention was the chairman of the federal reserve board, followed by secretary of the treasury fowler, secretary of state, secretary of congress, the budget director charles schultz, chairman of the house ways and means committee, , majority whip, who chairs the economic policy committee, and finally, senator long of louisiana, a member of many senate and joint committees central to the control of the nation's fiscal policy. ♪ to an outsider, they look no more than relaxed executives taking a lunch break in the company cafeteria, but in actuality, they were helping the president put the final stamp on a program of action that would in the year ahead bring the elusive balance of payments close to equilibrium. the final decisions agreed upon in the last day of december were put before the public on the following morning in president johnson's 116th news conference. that same day, he also released a major statement on the balance of payments from san antonio, thus underscoring its concern by taking the case directly to the people. as far-reaching as these fiscal decisions were, th

and before joining aei, kevin was senior economist at federal reserve board. now any of you who know kevin or have seen him speak know he is a clear thinker, a straight talker, and says what he thinks. and he is, i think, serving the administration, the country extraordinarily well. the format we're going to used to is question and answer. i will lead off with a question or two for kevin. and he has been kind enough to be willing to accept questions from the audience. he has hard stop at 1:30. let's keep that in mind. let's have a round of place for our panelists this morning, first. [ applause ] >> thank you. >> i'm going to sit in this chair. i feel like, i don't know whether it is charlie rose or david ruben stein. >> don't want it tato talk abou that. >> exactly. let me start, kevin, with a very broad question. on the recent tax reform bill. what, in your view, are the three most important changes that that bill accomplished? >> yeah. thanks so much. let me begin by thanking john for his leadership for all these years. i think he wrote a meeting. but if it

. >> before joining, he was a senior economist at the federal reserve board. any of you who know kevin or have seen him speak know that he is a clear thinker, a straight talker, and says what he thinks. he is, i think, serving the administration and the country extraordinarily well. the format we are going to use today is question-and-answer. i'm going to lead off with a question or two for kevin and then he's kind enough to be willing to accept questions from the audience. he has a hard stop at 1:30 p.m. so let's keep that in mind. please join me in a round of applause for our panelist this morning. [applause] whether it's charlie rose or david rubenstein, don't want to talk about that. let me start, kevin, with a very broad question. on the recent tax reform bill. what in your view are the three most important changes that that bill accomplished? mr. hassett: thanks so much and let me begin by thanking john for his leadership for all these years. i think it might've been that i wrote a paper for the very first meeting, but if it wasn't the first, it was the

he's been around the block on the federal reserve board for quite some time. i think why he's criticized for being political is a few days before the election, she's saying i'm not sure when the next great race is going to come. she raises 25 basis points and starts talking to abolish a reduction purchaser that not political is not true. lauren: he is known for is yes and no, short answer and sometimes i want a little bit more. we have the stock market higher across the board yesterday and quite honestly for the second session in a row closing at the height of fashion which is a good sign that technology made it big technology made it big, big, big comeback. amazon in particular we've been hearing this is th next company to hit the $1 trillion market value in the next 12 months. >> it's hard to trade the stock and added such a disruptive company in every business day attack. a logistical mastermind. they figure out how to get the product at the lowest cost and get it to the customer for almost nothing. i don't expect it to stop anytime soon. lauren: michael le

. >> in large part through decisions reached here, in the federal reserve board room, in washington.arguably the most important economic conference room in the entire world. >> i think that's actually a fair assessment, the policymakers and senior staff sit around this table. and we sometimes disagree. but, we're not disagreeable. >> under yellin's leadership, the board slowly raised interest rates. and also slowly, started cutting back on bonds and other assets, the fed bought up to ease the recession. it worked. inflation its now less than 2%. and unemployment at 6.7% when she took office, has dropped significantly, to 4.1%. >> the labor market has become stronger. i believe that since i have become chair, several million jobs have been created, on the order of 10 million. >> i think the peppers look beautiful don't they? >> yell spin is used to debatin economic policy even at home. her husband and grocery shopping partner, george ackerloft happens to be a nobel prize winning economist. believe it or not they met at the fed. where they both did a brief stint in the 1970s. >> really

then we had the federal reserve board of atlanta saying they thought we could get to 5% to 5.5% growththe third quarter. that sort of spooked the markets because, austan, it seems to me wall street doesn't want pay raises for workers because we got a pretty good number on the wage increases for workers in the last jobs report. you know, i'm just flabbergasted about -- >> i guess my question to that -- >> it's not bad -- >> well, steve, i guess i would have two questions about that, steve. the first is if that's true, then why did we just give a $2 trillion tax cut to those same corporations on the grounds that they were supposed to be passing it on in the form of wages? >> but they are. they are passing it on. >> and, two, what you see here is this is the trump move, which is try to claim credit when something is good. then if it starts to go wrong, blame others. no, it was the fed. it was somebody else. corporate america doesn't want to give wages. what are we going to do? look, donald trump should not have been getting up and saying that just as he shouldn't have been getting up sayi

aru became the first chair of the -- of the federal reserve board in modern history not to bede renominfterving a full term. how disappointing was that? well, i would have liked to serve an additional term, and i did make that clear. so i will say that i was disappointed not to be reappoted, but i have had the privilege and the honor of rving in very high positions in the federal reserve system and inernment more generally for quite a longime as vice o air, president of the san francid. i've really had a seat at the table through tumultuous times,h includin financial crisis and the recovery in its wake, and i'm very satisfied with the career that i've had. >> woodruff: let me sk you finally about how you grade yourself as chair of the feral reserve. you put a lot of emphasis on employment, on getting people into the workforce, keeping interest rates low. you famously said, very early on, we are going to at least keep filling the punchl b until guests have all arrived. and some wereic skep when you said that. >> well, i'm n going to try to grade myself. i think that's for others to do. lock,

. >> bret: powell has been on the federal reserve board since 2012. here are some numbers to put things in perspective. in terms of points, today was unprecedented. previous biggest drops between 700 end 800 in the financial crisis of 2008. today's 4.6% drop was far from any historical record as far as percentages go. the dow lost almost 23 percentage points in october of 1987. black monday. there were big losses in the great wall street crash of course of 1929. nothing even close to that right now. let's get some analysis right now from gary b smith, the fox news contributor. gary, it is jerome powell's first day as a fed chair, not exactly the best day to come in but there is an interesting dynamic in the market where the economy may be doing well fundamentally but just the threat of interest rates going up really spooks folks. >> exactly. i think the focus on inflation and the fed is a little overdone. there's a lot of people in the market that have never really lived through high inflation. like there was in the '70s. if people look at inflation r

he has been on the federal reserve board since 2012 and has -- a mark inmark terms of memorable remarks before hand. scarlet: i want to talk about about-yen that you talk is a risk barometer, but the story of currencies has been of a weakening dollar and not theyen. is it still a good barometer? futures are down, equities look awful, and dollar-yen has gotten crushed. to some there is still a pavlovian response that the ask is some -- that the yen is some sort of risk barometer. i think the strength of the signal is weaker. if the dollar is going down against everything, it is going to go down against the yen as well. look at last year when global equities had the low volatility much to the upside and dollar-yen went down on the year. and if you look at the yen the nikkei, the correlation is lower than it has been between those two in, like, five or six years. there is an argument to be made that when we see dollar-yen, what we are really capturing is the dollar more than the yen. the fact that we have broken the abe-economicse era, i do not think it is ringing the bell. nervous,with pe

the markets worry about inflation, about the federal reserve board raising interest rate and that cangive a tax cut and then you do a spending bill, you do that when you are in a bad recession. right now, we are at the opposite end of the cycle. >> thank you, robert reich for finally admitting that we have a great economy under trump. we do have a great economy, it is booming. whether it is corporate profits, investment spending is off the charts. i would make the case that it didn't happen by accident. now is donald trump responsible for the reduction in the stock market? this was a bad week no question about it, but i will let trump take the blame for the reduction in the stock market over the last two weeks -- >> as he has taken the credit for every gain. >> i am just saying, my point is it is the trump economy right now, no question about it. this isn't the obama economy. obama is not responsible for the big boom and not the reason the stock market is fallen. i am very bullish. good time to buy stocks. i was on your show a few weeks ago, saying the market is getting ahead of itsel

and we had the federal reserve board saying they thought we could get the 5.5% growth.seen that in a long time. that spoorked the market because it seems to me wall street doesn't want pay raises for worker. we got a good number on the wage increase for workers and the last jobs report. and i'm just flabbergasted. workers make more money it's good. >> steve, i guess i would have two questions about that. the first is if that's true why did we just give a $2 trillion tax cut to the same corporations on the grounds they were supposed to be passing it on in the form of wages? >> they are. >> what you see here is this is the flooutrump move. claim credit when something is good. if it starts to go wrong blame others. it wassed fed it was somebody else. what are we going to do. donald trump shouldn't have been getting up and saying that just as he shouldn't have been getting up saying the unemployment rate was 50%. and then a few days after he takes office he says now we have a record low unemployment rate. as i say the president has proven shameless as citing statistics. and

. >> so you were successful academics and suddenly in the 90s on the federal reserve board. how did that happen? >> interesting. i had always been interested in holding a policy of that sort but one day the phone range, i guess it was the spring of 1994. there were several open positions on the board of governors and there was someone from the treasury asking me if i would be interested and i asked them to hold the phone for a couple of minutes and decided maybe i should talk to my spouse and see how he would feel about moving to washington, and my son. and he said, well, of course we'll make it work. this is something you probably would like to do and i got back on the phone and basically said, if you offer me the job, i'd be delighted to take it. waited a couple of months and low and behold i was nominated along with allen who was nominated at the time as vice chair. i thought they were a reasonable basis to try to contribute to monetary policy. during the time i spent there and i'm sure you had this experience as well learned a lot about a lot of other responsibilities in

suddenly in the 1990's you find yourself on the federal reserve board. how did that happen? it's an interesting transition. janet: i never had any policy experience, although i did have a stint working as an economist in the international finance division of the fed, it had always been interested in holding a policy post of that sort. one day the phone rang. it was the spring of 1994. there were several open positions on the board of governors. it was someone from the treasury asking me if i would be interested. i asked them to hold the phone for a couple of minutes and decided maybe i should talk to my spouse and seeing how he would feel about moving to washington. he said, well, of course we will make it work, this is something you would probably like to do. i got back on the phone and said, if you offer me the job, i would be delighted to take it. waited a couple of months, lo and behold, i was nominated, along with alan blinder who was nominated at the time as vice-chairman. i went to the fed. i thought the research i had and the background i had were reasonable basis to

authorized the federal reserve to pay on excess reserves at reserve banks; however when the bill got amended, the federal reserve in determining those interest rates was left to the board of governors and not to the entire federal open markets committee and we know this is a valuable tool using the entire committee to determine monetary policy. my question for you is would you support an initiative or a legislation that would give the full role of determining what the excess reserve amount, excess interest on reserve, interest on excess to an entire expanded fomc and the federal reserve? >> i guess i would say this is less of a problem than it seems to be. >> okay. >> the full fomc decides the range for the federal funds rate and the ioer is only set at the top of that range, and so it really is the voting members of the fomc who decide that so it's not, it would have been a reasonable decision for congress to do that. i'm always there to support changes to the federal reserve act because that opens up the act but as a practical matter this is not a problem we need to solve because there's no difference between the two things. >> so would you be supportive of non-suppo

trillion immediately when you consider the cost of borrowing that money over 10 years with the federal reserve boardromising that they intend to raise interest rates by about -- by at least three opportunities and maybe four or five, the ministration is proposing these tricounty and cuts. a reminder, as a noted in my opening statement, medicaid now is long-term care in america. it's for seniors and nursing home care and these proposals would on the basis of justifying a tax-cut for people at the very top. i ask you to reconsider these cuts going forward. issue you can address the . it's a big employer. >> first, i would support the chance to get to sit with you and work with you in the years ahead. in terms of graduate medical education, what we are proposing their is too unified -- we have various streams for training doctors. they are frozen in place as of 1996. we are proposing to pull that together and give us the flexibility to train doctors that are focused on underserved specialties and underserved areas. >> thank you. 45 years ago, sam johnson returned to america after seven years as a pow i

recalibrate the reaction function for the new fed of course, we're missing four members of the federal reserve boardre are other three members of the board right now, so it is totally hard to recalibrate, but we'll have to understand how he processes these things and we'll hear a little bit of political sport, how the fed chairman deals with the political questions that will be asked. let's not forget that the real purpose of this these guys are not working for the market, the senators and congressmen out there, they are working for their own political career think of the fed chairman in this context as the bank of a pool table where they are going to try to get things going at him to see how they bounce off so they will talk about the deficits and you'll see the republicans try to ply him with questions about how the tax cuts will increase productivity. depends on the kind of political points they want to score. and we'll see how the fed chairman wants to play the political game here. >> yeah, we often see that a little more overt on the house side as well steve liesman, we'll come back to you late

when you consider the cost of borrowing that money, $2.3 trillion over ten years with the federal reserve board promising that they intend to raise interest rates by at least three opportunities and maybe four or five. the administration is proposing these draconan cuts with another $1.4 trillion cut to medicaid. a reminder as i noted in my opening statement, medicaid now is long term care in america. it's for our seniors, for nursing home care, and these proposals again were done on the basis of justifying a tax cut for people at the very top and who are the very strongest. mr. secretary, i ask you to reconsider these cuts going forward. the health of our providers and communities depends on us being prudent, and not rash. i hope you can address the issue of graduate medical education as well. what's proposed there, that's a big employer for many of us, particularly concentration in big cities across the country. if you could speak to those issues and address the issue of cuts to medicaid and nursing home care, that would be most helpful. >> ranking member, first, i very much look forward to g

or coincidence that today we will get a new fed chairman jerome powell saw a new man on board of the federal reserve and then also might cause a little bit of uncertainty and how his policy will look like he ends quarter for us on coincidences and corrections at the new york stock exchange thank you we'll get back to you later in the day. a leadership battle is brewing at samsung the air of one of the biggest world's. corporate empire is now out of jail judges shocking south korea's business and political establishments by suspending corruption sentence. he used a year behind bars to reflect will reflect with our asia correspondent in a moment first this report. bribery perjury embezzlement just some of the charges in the long list levelled against a legion a young one up south korea's wealthiest and most influential managers nevertheless he served just one year of his five year sentence and is now free. again i feel very sorry to everyone for not showing my best side and it's been a really precious time for a year reflecting on myself that i will thoroughly check and do my best. to. lee was the sub

powell is set to be sworn in in the next hour as chairman of the federal reserve board.nomy but a difficult situation to navigate. steve liesman, hi, is here and he joins us right now with a look at powell's -- what he's inheriting. >> calling it owell's predicament right now, and powell enters office with significant questions on the table about the outlook for rates and inflation and how strong is the economy relative to potential that's really the inflation game a tax cut now working its way through the economy promises substantial near term risk there is more government borrowing in the months ahead before any supply side kicks in. it raises concern that long awaited inflation may finally have arrived add to that high market valuations that raise questions about whether the fed ought to respond with higher rates. fed chair janet yellen addressed the market valuations in a series of exit interviews over the weekend. >> so the stock market, the ratio of price to earnings, which is a measure of valuation, is near the high end of its historical range, and if we look at,

the third measure, the small bank holding company relief act of 2018, would direct the federal reserve board to triple the small bank holding company policy's statement from $1 billion to $3 billion, allowing even larger banking institutions to use greater amounts of debt to finance acquisitions. seemingly ignoring the lessons from the previous financial disaster that we continue to climb out of to this very day. indeed, these financial services bills would weaken and politicize the policies created after the financial crisis to identify and guard against systemic risk in our financial system and will allow even larger bank holding companies to leverage themselves with debt when financing the purchase of other banks. reviewing this legislation i had asked myself, are the memories of my republican colleagues really so short that they do not remember the complete breakdown of our financial system only a few short years ago? let me remind my friends across the aisle that the financial crisis of 2008 was the worst economic downturn america's faced since the great depression. four million homes w

this hearing is for the purpose of the testimony of the chair of board of governors of the federal reserve system on monetary policy and the state of the economy. i now recognize myself for three and a half minutes to give an opening statement. now the monetary fiscal stimulus in the nation's history, the economy limped along eight years averaging 1.6% gdp growth. remains stagnant and savings failed to recover from the 2008 financial crisis. a new phrase coined, in an attempt to racialize the phenomenon, namely secular stagnation. high taxes in heavy handed regulatory policy. with the election of donald trump and the passage of the tax cuts and jobs act, that has changed. unemployment is now at a 17 year low. wage growth is the fastest in almost a decade and companies all over america are announcing bonus to the employees and expansion in their communities. economic growth is once again, arching 3%. however, there are some concerns we all recognize that there's been great volatility in our equity markets recently and i notice the s and p five hundred up more than 14% sins last year. corn w

or coincidence that today we will get a new fed chairman jerome powell saw a new man on board of the federal reserve and then also might cause a little bit of uncertainty how his policy will look like he ends quarter for us on coincidences and corrections at the new york stock exchange thank you we'll get back to you later in the day. also looking at a robust euro zone right now the economy expanded at its fastest rate in a decade last year the business outlook is solid but there are still risks. the economy of the nineteen member single currency union posted its highest growth since two thousand and seven before the global financial crisis the european commission statistics body euro stat says annual g.d.p. growth for the bloc went up two and a half percent that growth was largely driven by france which has a new economic impetus with emmanuel mccaw at the reins and spain which expanded by just over three percent. in the value of goods and services produced in the euro zone has been rising steadily in twenty fifteen euro zone growth rose by one and a half percent. in twenty sixteen the eurozone eco

when the bill got amended, the federal reserve in terming the interest rates was left to the board of governors and not to the entire federal open markets committee t. is a valuable tool using the committee to determine monetary poll sichlt my question for you is would you support an initiative or legislation that would give the full role of determining what the excess reserve amount -- excess -- interest on excess to an entire expanded fomc and the federal reserve? >> i guess i would say this is less of a problem than it seems to be. the full fmoc decides the rate of the federal fund rate and it is set at the top of the range and it is really is the voting members of the fmoc who decide that. it would have been a reasonable decision for congress to do that. i'm loathed to support changes, but as a practical matter, it is not a problem we need to solve because there's no difference between the two. >> so would you be of supportive or not supportive of legislation that would allow the district president to weigh in on that decision as well -- and if not why not? >> i don't think we are

yellen's final act, the federal reserve slapped wells fargo and the board with a cease-and-desist lettervendor had its rating cut by three analysts and felt by the most in two years after the fed band the bank from growing until a convinced authorities it is addressing shortcomings. >> this is a harsh order and unique. >> the fed itself called it unprecedented. typically you see the fed talk about board oversight come but the asset cap is what was unique fargo can't wells grow its assets until it shows it has made progress on this, and that could have some longer-term effects. it also seem to indicate it was not happy with the pace of wells fargo cleaning up its act. they have had some time to clean it up, and i think the fed is looking for them to speak data. >> a south korean court has suspended the prison sentence of jay y. lee after he appealed the jail term. the sentence was cut by half, although he is now free to go on four years of probation. >> if you can be stunned and not surprised, that is the reaction today. we are stunned the high court reviewing the appellate court process

federal reserve banks. however when the bill was amended the federal reserve in determining the interest rates was left to the board of governors and fallout to the entire federal open markets committee. we know this is a valuable tool using this -- the entire committee to determine monetary policy. my question for you is would you support an initiative or legislation that would give the full role of determining what the excess reserve -- excess interest on -- interest on excess to an entire expanded fm -- fomc and the federal reserve? >> i guess i would say this is less of a problem than it seems to be. >> okay. >> the full fomc deciding the raining for the federal funds rate. and the ioer is only set at the top of that raining. and so it really is the -- the voting members of the fflt omc eystading that. it's not -- would have been -- it would have been a reasonable decision for congress to do that. i am always loathe to support changes for the federal reserve act but that opens up the ac. but as a practical matter that is not a problem we need to to safl bus there is no difference between the two things. >> woul

nice or coincidence that today we get a new fed chairman jerome powell saw a new man on board of the federal reserve and that also might cause a little bit of uncertainty and how his policy will look like he ends quarter for us on coincidences and corrections at the new york stock exchange thank you we'll get back to you later in the day. one disaster after the next for ryanair chief michael o'leary masses of cancellations growing tensions with personnel then he tells pilots their jobs are oh so easy but none of that baggage is weighing on the irish carriers results profits are up the passengers keep coming. ryanair is flying higher its earnings climbed twelve percent to one hundred six million euros in the last quarter and passenger traffic is expected to increase for the full fiscal year ending in march twenty eighth. that's us by the cancellation crisis last fall when thousands of flights fell through to a pilot rostering issues the scheduling snafu cost the irish budget carrier its position as europe's biggest airline passenger numbers in favor of a look tons at enlarged by its takeover of air b

federal reserve. the form investment banker and fed board member succeeds janet yellen.on she serveterm, but presidentmp declined to offer her a second. and, the philadelphia eagles returned home from minnesota today, with their first super bowl trophy, ever. they beat the favored new england patriots last night, 41 to 33, to claim the national football league championship. we'll have a full report, late in the program. still to come on the newshour: what is computational propoganda? and how it is central to russia's information warfare. five months after hurricaneaf horvey, is houston prepared the next big flood?ig and much more. >> yang: thpolitical fight over the russia investigationga rages on. democrats pushed today for the use intelligence committee to release their answer to a republican memo. and the president traded jabs with a top democrat. bite house correspondent yamiche alcindorins our coverage. >> reporter: president trump was supposed to be focused on tax cuts.su instead he started his day by going after a leading critic on the russia investigation. his target: california democrat adam

. >> coming up next, all board, the >>> stocks slid today after comments of the federal reserve chairman led investors to believe that interest rates could go up amazon is expanding its home security business. buying ring which makes wi-fi connected cameras and doorbells. the ring acquisition helps amazon better compete with googles nest which also makes camera. >>> excellent or good. approval has been going up every year since 2010. counting buses and trolleys, light rails and cable cars, there are 80 different routes through the city. quite the system. >>> new head of humane society of the united states responds to reports on sexual harassment allegations less than one day after >>> i am supportive of the women who have come forward and i believe the women who have come forward. >> the new head of the humane society of the united states reacts into complaints of sexual harassment at that organization. women who say they have been warning about problems. >> they tell me they reported sexual harassment at hsus but didn't go public at the time for fear of losing their jobs. remembering he

federal reserve has waited taking an action which one commenter said is putting the fear of god in bank board rooms here discusses eric reimer a former f.c.c. official and policy commentator eric thank you for being with us first of all tell us what you make of their entire sort of nefarious actions give our viewers what wells fargo has done over the last three years to put them in this problematic circumstance and it's a very multifaceted problem basically it back in september two thousand and sixteen . the o.c.c. and the boss and so the attorney revealed that wells fargo for about a decade had been encouraging or at least facilitating its a sales reps to create millions of fake accounts primarily checking accounts saving accounts credit cards for their customers that were not authorized by their customers and essentially disallowed wells fargo to reach sales quotas to drive increased fees and to basically bolster their bottom line that the expense of their customers that also goes on top of several other scandals the past few years that wells fargo has faced ranging from the car loan scanda

federal reserve has waited taking an action which one commenter said is putting the fear of god in bank board rooms here discusses eric reimer a former f.c.c. official and policy commentator eric thank you for being with us first of all tell us what you make of their entire sort of nefarious actions give our viewers what wells fargo has done over the last three years to put them in this problematic circumstance and it's a very multifaceted problem basically back in september two thousand and sixteen g.b. the o.c.c. and the los angeles city attorney revealed that wells fargo for about a decade had been encouraging or at least facilitating its sales reps to create millions of fake accounts primarily checking accounts saving accounts credit cards for their customers that were not authorized by their customers and essentially this allows wells fargo to reach sales quotas to drive increased fees and to basically bolster their bottom line at the expense of their customers that also goes on top of several other scandals the past few years that wells fargo has faced ranging from the car loan scandal

chairman powell took office as chairman of the board of governors of the federal reserve system on february 5, 2018, for a four-year term. he has previously served as a member of the board of governors and took office on may 25, 2012. mr. powell also serves as chairman of the federal open market committee. prior to his appointment to the board, chairman powell was a visiting scholar at the bipartisan center as well as a partner of the carlisle group. he has served as an assistant secretary and undersecretary of treasury under president george h.w. bush. prior to joining the administration, he worked as an attorney and an investment banker in new york. chairman powell received an a.b. in politics from princeton university and earned a law degree from georgetown university where he was the editor in chief of the georgetown law journal. without objection, the witness's written statement will be made part of the record. chairman powell, again, welcome, and you are now recognized to give an oral presentation of your testimony. >> thank you very much. >> you're going to have to hit the microphone

federal open markets committee and their role in determining interest on excess reserves. in 2006 congress passed the , howevereally fact the the bill got amended, federal reserve, in determining those interest rates, it was left to the board of governors and not the entire federal open markets committee. we know this is a valuable tool, using the entire committee to determine monetary policy. my question is, would you support and initiative or legislation that would give the full role of determining what the excess reserve amount, to an, interest on access entire, expanded fmo seeing the federal reserve? reserve?d the federal fmoc decides the iomr is only the at the top of the range. it would've been a reasonable decision for congress to do that. to supportloath changes for the federal reserve act because it opens up the act but this is a problem that we don't need to solve because there is no difference between the two things. congresswoman: so would you be supportive or not supportive of legislation that would allow the district presidents to weigh in on that decision as well? and if not, why not? chairman powell: i don't think we are looking for legislation. congresswoman: we are looking for more stakeholders to be in

. >> tyler, the federal reserve in january across the board talked about stronger growth in the u.s. economy than it had previously forecast and said it was the outlook for stronger growth that affirmed the gradual approach to raising rates saying the gradual approach would sustain economic growth and it was the increase likelihood that a gradual upward trajectory of the federal funds rate would be appropriate which is what led them to add the word further that the market has been hung up on to the phrase further gradual increases. they said inflation was basically still expected to hit that 2% rate they have been targeting in the medium term they held the expectation. there is a lengthy discussion about inflation. various models and projections they basically still held the line on that they said the decline in the dollar would potentially move them toward that inflation target they said they have seen few signs of a broad-based pickup in wage growth. that there is an absence of clear signs. that's something the fed is looking for. they did say that the tax cuts are a near term posi

board members. they will do that by april and a fourth by the end of 2018. that's according to the federal reserve press release. wells fargo has issued a response saying we take this order seriously, we are focused on addressing all of the federal reserve's concerns, that is according to the ceo timothy sloan. it is important to note the consent order is not related to any new matters but to prior issues where we have made significant progress wells fargo being forced to replace board members and limit asset growth sending it back to you. >> thank you many of us have been surprised that the federal reserve didn't do something earlier and i think this is more extreme than i thought they might do. more importantly, this limited assets this stock has been red hot. up 5% for the year and when you cap assets you lose what are best narratives that are occurring which is we are in recovering mode. if they can fix the governance, the assets will come back. >> this is one heck of a last move from janet yellen they also excoriated sanger. i wonder if changes the entire investment dynamic about limiting the

the federal reserve ordered the bank to get rid of four of the board members in connection with the feds calls widespread consumer abuses. the action comes in response to a big scandal at the bank two years ago when millions of accounts were opened that customers did not ask for. and a statement wells fargo said they will comply with the feds orders and submit a plan how they would improve the oversight within 60 days.>>> three schools have been announced to be closed because of poor enrollment. our reporter went to glider elementary school which is one of the schools that is expected to shut down.>> reporter: were families, this news is heartbreaking. the school along with -- for families, this news is heartbreaking. the school along with two others will be shut down. the oak grove school district made the announcement this week thing they had little choice. they say the -- as the number of students shrink, so does the state funding.>> we have got to the point where the impact of declining rubble went -- enrollment and increasing costs we needed to take some action to help our district.