janet yellen: so, yes. margin, i think that was something that concerned people about pushing asset purchases a lot further. it was a worry that they had. paul krugman: so in effect we are saying that the people who hold ben bernanke over the coals , saying he was debasing , the open letter from a bunch of economists warning against -- all of this did somewhat color. janet yellen: but not much. i've given you an example of concern that perhaps at the margin made a difference, but i would say on balance, we push to do almost everything that we could think of in order to try to stimulate the economic growth and reduce unemployment. that was the overwhelming consideration. maybe in qe there were also people who felt it might have adverse impacts on market function. there was internal opposition to doing more on qe. did -- we also used the tool of forward guidance, which, we talked about purchasing assets. another factor that impacts long-term rates is the public's expectations about the path of short-term rate

janet, dr. yellen. janet yellen: janet is absolutely fine. paul krugman: i'm professor doctor-doctor. okay. janet yellen: how about paul? paul krugman: that will do. let me just start with, there is so much to talk about, so you were in the middle witnessing, taking decisions, in the midst of the worst economic crisis since the 1930s, so my first question is, did you have any inkling in advance that something like this might happen and when it did hit, did you have a sense that you kind of knew what was going on? janet yellen: well, i saw pieces of it that gave me an inkling, so there were things i was concerned about. from 2004 to 2010, i'm thinking of 2007-2008, but particularly 2008, is the height of the crisis, so i became president and c.e.o. of the federal reserve bank of san francisco in 2004. my very first briefing i got from the group that was involved in banking supervision, they were very concerned about cre commercial real estate lending, and in the banks that they supervised, which many -- many of which were banks in california,

. >> tonight at 8:00 eastern, former federal reserve chair janet yellen talks with "new york times" columnist paul krugman about her time at the fed and the current risks in financial markets. here are some of her remarks. yellen: i think things have improved, but that i think there are gigantic holes in the system. the tools that are available to deal with emerging problems are not great in the united states. take leveraged lending, which i talked about. i don't think the banking agencies have sufficient tools. we can deal with that if it is a safety and soundness problem for a bank, but if it is a question of selling risky things into the market that can undermine financial stability we don't have a set of tools to do with that. we are also seeing a lot of pushback against regulations, and to some extent, look, after eight years of writing thousands of pages of regulation, it probably should be adjusted around margins, particularly smaller institutions. but we are seeing more than that happened now and we are entering crisis decade after the an era where there is a huge focus on deregulatio

and trump made the choice to not reappoint janet yellen. he thought she was too short. she's 5'3", and therefore he wanted someone taller. that's what the "washington post" reported. if he wanted someone who wasn't going to raise rates he could have stuck with janet yellen, but he didn't. >> it's one of the most insane and delicious ironies in this era, the first woman to ever run, who did an incredibly good job, i think, by and large, who actually sympathetic to the inclination trump has gets canned because she's "too short" replaced with a guy, who, john, trump is now railing against in public, to play the obama had done game, the kind of like bright line towards dictatorship conservatives tend to freak out about. >> reportedly he's telling people that powell is going to turn him into a herbert hoover. that's how concerned he is about the economy, which seems a little overheated to me. but it would be kind of ironic if he was hoisted by his own patard of sexism, firing the praised federal reserve chairman for not being tall enough. maybe there's some binders on high s

been shorter he was six foot seven and then every subsequent fed chairman has been shorter with janet yellen clocking in at something like five point six why is this important let's talk to stacy herbert well jerome powell is the chairman of the federal reserve bank of america and he did raise interest rates by twenty five basis points this week despite all the tweets badgering him from donald trump the president of the united states who is telling him he's going to sink the economy of course that is s. and p. five hundred has had the worst basically the worst december since one nine hundred thirty one since the great depression and everybody's quite upset the power put is much further out of the money than it was under previous fed chair's that's what hurt psychology miller table back the investment firm in new york says how will traders possibly survive as the euro heads right getting back to my discussion about the height of chairman during that time starting with volcker when interest rates are the short term rates for the high teens approaching twenty percent when reagan was president t

been shorter he was six foot seven and then every subsequent fed chairman has been shorter with janet yellen clocking in at something like five point six why is this important let's talk to stacy herbert well jerome powell is the chairman of the federal reserve bank of america and he did raise interest rates by twenty five basis points this week despite all the tweets badgering him from donald trump the president of the united states who is telling him he's going to sink the economy of course that is s. and p. five hundred has had the worst basically the worst december since one nine hundred thirty one since the great depression and everybody's quite upset the power put is much further out of the money than it was under previous fed chair's that's what hurt psychology miller table back the investment firm in new york says how will traders possibly survive as the euro heads right getting back to my discussion about the height of chairman so during that time starting with volcker when interest rates the short term rates for the high teens approaching twenty percent when reagan was president th

janet yellen was a great fed chair. she always kept interest rates low for a reason. she was concerned about jobs and the economy. he takes her off there because he says she doesn't look the part. >> she's too short. >> i get very upset, under 5'0" here. because she's short. he takes her off. he puts this guy in, i don't know him, and then he rips the guy to shreds, which is unheard of. it is unethical. it has never been done. and i'll tell you, wall street, where i worked a thousand years ago, wall street, the thing they hate the most is this kind of chaos, this up and down and down and up. and, you know, hey, a thousand points up, that's great, is it going to go down a thousand points tomorrow? this is not good for the country. so i think the last point i'd make about donald trump is he does look at his approval ratings. they are not good. and when nancy pelosi gets in there and the democrats act like grown ups, and i'll tell you, mitch is going to be in a tough spot. let them pass it, let them send the reopening of the government. it could be short term, to the pre

janet, dr. yellen? >> janet is absolutely fine. >> as for me, since i have a degree from germany, i'm professor doctor doctor. >> how about paul? >> that will do. okay. let me just start with, there's so much to talk but but i want -- so you are in the middle with taking decisions and in the midst of this, that the worst economic crisis since the '30s. and so first question is, did you have any inkling in advance that something like this might happen and when it did hit, did you have a sense that you kind of knew what was going on? >> well, i saw pieces of it that gave me an inkling, so there were things i was concerned about. from 2004 to 2010, so i'm thinking of 2007 and 2008 as the -- but particularly 2008 is height of the crisis. so i became president and ceo of the federal reserve bank of san francisco in 2004. my very first briefing i got from the group that was involved in banking supervision, they were very concerned about cre, commercial real estate lending, and in the banks they supervi d super

twenty percent when reagan was president they've gone down every single year really culminating in janet yellen now this new fed chairman powell is in place and he's saying that we're going to go back to well he describes it as getting rid of the put that the federal reserve bank under greenspan or bernanke or janet yellen they were constantly bailing out markets by making rates cheaper apparently powell is saying that he's not going to go in don't truck with that he's not down with that everybody was admonished him about raising raise the problem is that stock markets have been selling off we've seen the worst stock market sell off since one thousand thirty one for december. and people were expecting otherwise the opinion stock investors you have now been warning for the last time basically you can't taper a ponzi this headline reads with a record ninety percent of asset class is down for the year and almost half of the s. and p. five hundred index components and a bear markets hopes are first santa claus rally to save what's left of a terrible investment year and while markets may still see s

twenty percent when reagan was president they've gone down every single year really culminating in janet yellen now this new fed chairman tom.

former federal reserve chair janet yellen told a new york audience last week that she worried about another financial crisis while talking about some of the lessons learned from 2008. she also spoke about the likelihood of interest rates rising and other topic

we'll hear n c-span from former federal reserve janet yellen. followed by u.s. strategy in the iddle east and then former f.b.i. director jamesey

. >> tonight on c-span, former federal reserve chair janet yellen in conversation with new york times columnist paul krugman, talks about the financial crisis, the role of the federal reserve and current risks in the financial markets. >> i think things have improved but then i think there are gigantic holes in the system. the tools that are available to deal with emerging problems are not great in the united states. take leverage lending, which i talked about. i don't think the banking agencies have sufficient tools. we can deal with that if it is a safety and soundness problem for a bank but if it is a question of selling risky things into the market that can undermine financial stability we don't have a set of tools to deal with that. we're also seeing a lot of pushback against regulation and to some extent, look, after eight years of writing thousands of pages of regulation, it probably should be adjusted around the margins rg particularly smaller institutions. but we're seeing more than that happen now and we are entering again really only a decade after the crisis when there is

what did you read into that janet yellen said? >> i agree.inancial crisis or even a recession at this stage. she was expressing caution because what we've seen from the trump administration is a desire to roll back regulations and the congress has implemented some of the rollback through some weakening of dodd/frank. on the other hand, j. powell, her former colleague on the fed, is somebody who has tempered and practical views about regulation. he's not ideologically opposed to wall street regulation. i think she was hedging against what might happen in the future but not in full five-alarm mode. >> progress being made in the united states' discussion with china on auto tariffs in particular. what's your sense of it? >> well, i think we're going to see from the administration a desire to do what it can to temper some of the volatility in financial markets. so the president who grades himself on how the stock market is doing, if he sees the market go down, we're more likely to hear from steve mnuchin or larry kudlow or see a tweet from the pre

|j wonder what janet yellen is thinking, she's at home watching closely at imagine, i wonder what thinkingt city am, eu olive branch is as city fears, what is the olive branch? the eu's response to regulation the bank of england has already implemented a few months ago for the case of a no—deal brexit scenario. the regulations saying that the current regulation, which means london based banks can trade in the eu will continue for a certain amount of time, about 12 months. business as usualfor a period of time. time, about 12 months. business as usual for a period of time. only a period of time, that is important, this is something the european commission hasn't aimed for, they would have wanted to settle this, not with a no deal contingency plan, but with something real in the settlement, concerns about... that trillions of derivatives contracts could be moved in a very short amount of time, and have now been found to be unfounded. but, as you said, it is something which is only covering a certain amount of time, and it might be that, well, in a couple of months from now, it might be the s

i kept asking as i listen to him, where is janet yelling when we need her -- janet yellen when we need her? >> the over brief. all of the numbers he had in economic protections and everything was prepared for him to deliver the right message but he somehow flubbed it.and went to the old janet yellen message. >> and he got to more detailed questions later in the press conference. he was certainly prepared and but then it was just, he clearly kept going back to the word normalization.and not fully explain what that meant. and i think that is where he really missed on the messaging. lou: i think both of you think this is about the messenger. and who could have used you know, something more in the way of training. but i am afraid it is the message. the messages that in the face of weakening signals from nearly every quarter of the economy, certainly lower prices. $4 trillion escape the equities market over the course of this tumble. and suddenly, suddenly we are supposed to righteously accept that more constriction is the perfect answer for declining prices. bill, what do you think? i mean

janet yellen had learned her lesson is fed chair.f the reasons that they should have been a superior choice to jerome powell. but now he is hopefully learned his. we will find out over the next two days. because in the fed open market committee meeting, they're going to decide the direction, they are supposed to raise rates again because jerome powell pounding his chest saying he is a fed chairman, it is independent and the president was wrong about rates. the president was right, right and right. and he was right from the beginning. >> is incredible. the president even did a better job forecasting makes the most wall street economists! lou: he knows more.he is a businessman who's built a fortune and preserved it. >> that is correct. and what made it happen, if we have a rate hike on wednesday, i don't think it is certain anymore. they may just hold off. lou: is there any doubt in your mind that the fed doesn't understand now, empirically, looking at these markets, looking at the yields, do you look at the 10 year, the two year, five

former federal reserve chair janet yellen told the new york audience last week that she worried about another financial crisis while talking about some of the lessons learned from 2008. she also spoke about the likelihood of interest rates raising and other topics important to the financial sector. this interview with paul krugman is just over an hour. >> tonight, we'll be treated to a wide range in conversations organized around questions paul krugman will pose to janet yellen. we'll have an opportunity to learn in detail about the recent economic crisis from someone who had a front-row seat. we will hear about what catalyzed it, how it was managed come how the recovery unfolded, and more. our special guest, dr. yellen, has been widely lauded her for predictive accuracy.

risk janet yellen season the financial markets. we will have been on c-span. ontinues. host: amid the holiday shopping frenzy, discussion about the state of small business in america. guest, former head of u.s. small business administration currently working with bipartisan policy center mainstream finance task force. we will be to some of the task force work but right now, what is the definition of a small business in this country? how is it somebody called a small business according to the federal government? >> it's delightful to see you and i always love to talk about small business. this is actually a really interesting question. what is small? the numbernition of of federal agencies, small business is anybody with fewer than 500 employees. now, that's the general definition but if you want contracting, every single industry has a different definition because if you have a manufacturing company with 100 people, that's small. but if you have an accounting company, that could be big. the other thing is, small business comes in all kinds of shapes and sizes like out o

. >>> the former chair of the federal reserve, janet yellen, told a new york audience she fears there could be another financial crisis because of limited tools to address panics and because of current deregulation efforts. her conversation with "new york times" columnist paul krugman was hosted by the city university of new york. this is an hour and ten minutes. >> tonight we'll be treated to a wide-rangiing conversation, questions paul krugman will pose to janet yellen. we'll have an opportunity to learn in detail about the recent economic crisis from someone who had a front-row seat. we'll hear about what catalyzed it, how it was managed, how the recovery unfolded, and more. our special guest, dr. yellen, has been widely lauded for her predictive accuracy, so if we're fortunate, she'll tell us what the future holds. [ laughter ] a

janet yellen didn't look the part in his eyes.ewish lady from san francisc francisco. >> she's incredible. >> one of the most dovish federal reserve chairs in the 100-year history of the institution. might have been better off threw out the ken trcentral base, sto looking at what they look like or appear as and say she would have been great for me. someone in the seat, knew would be more hawkish. game back and bit him on the rear end. >> uh-oh, janet yellen. maybe a mix tape coming your way. president trump might want to get back with you. dom, cnn has a survey, the chance of recession in the next 12 months has gone up by 23%. that's is the highest level in the trump presidency. put this in context for me. a jump of 23% seems like a lot, but it depends where it came from. >> right. so that's one thing to point out. it's no the to say a recession is eminent by any means. the idea more people are putting it on their radar now. i would point out also josh said something interesting about psycholo psychology. a reconciliation between

if i were him, i would say i don't like the janet yellen crisis she had a great record of navarro techall, she should drift off to the sunset and do a lot of education >> we'll get to what yellen says specifically of the market she's not alone. powell has been on that. we'll get to cramer's "mad dash" and opening bell and we'll talk more of google on the hill and some verizon of cbs news and downgradedd fziser, back in a moment i don't know what's going on. i've done all sorts of research, read earnings reports, looked at chart patterns. i've even built my own historic trading model. and you're still not sure if you want to make the trade? exactly. sounds like a case of analysis paralysis. is there a cure? td ameritrade's trade desk. they can help gut check your strategies and answer all your toughest questions. sounds perfect. see, your stress level was here and i got you down to here, i've done my job. call for a strategy gut check with td ameritrade. ♪ . >>> a look at futures as we count down to the opening bell we'll start with trading at 3.5 minutes. we'll have a significantly hig

dom, i didn't even work in there that janet yellen a couple of days ago says that a recession could beorizon. how are markets reacting to all of this. we know they like to climb at the end of the year. >> and janet yellen's comments about whether there's a corporate bubble, notwithstanding. let's take those comments. the federal reserve and jay powell and whether president trump feels as though interest rates should be raised. this has been something in play for months now at this point. the issue is whether the economic data is there for the fed to keep on its path of raising interest rates. right now, markets do not expect that the fed will be as aggressive with interest rates hikes in the coming year, given the fact that we have some softer economic data out there. namely, in the housing market and certain parts of the economy, besides just the hnl jo -- headline jobs rate. if that's true, the fed will move to raise interest rates this month and hold a little bit next year. that's perhaps giving a little bit of a boost. the second thing that you mentioned, the brexit vote, this idea

and in an interview last night former fed chair janet yellen added her name to the list. >> corporate indebtedness is now quite high. and i think it's a danger that if there is something else that causes a downturn that high levels of corporate leverage could pro long the downturn and in to lots of bankruptcies the non-financial correspondent secretarier >> compani today carry a $9 trillion debt load compared to 4.9 trillion in 2007. that could being bee a heada for corporations should interest rates continue to rise. >>> so why are corporate debt levels rising? it i it something investors should be concerned about yet? joining us colin martin, the director of fixed income strategy at charles schwab thanks for joining us. >> thanks for having me. >> why has corporate debt gone up as much as it has in the the last decade are you nervous yet. >> we are n nervous yet. risks are growing but for now ner relatively well contained. we have seen the huge debt in corporate debt outstandin because of the low interest environment. corporations issued more debt at historically low interest rates.

been shorter he was six foot seven and then every subsequent fed chairman has been shorter with janet yellen clocking in at something like five point six why is this important let's talk to stacy herbert well jerome powell is the to.

will the finance wars that ain't going to work out meanwhile it's kind of interesting what what janet yellen in the senate is saying here now not speaking to her yesterday and she said there's a gigantic full. in the process here and she's worried about another financial recession. what's curious is in june of two thousand and seventeen shortly after a few bad she came out and said. no more fertilizer prices that are a lot of her work there at the time is that one and the other come up with max never wrote about yesterday this is when you're in charge of the air and else you have to say that the plumbing is good so here we are now i guess time hands and spread aster you're going to speaking to are you going to say whatever you want so now she's worried. about are your shoes carriers of a big crowd on the back were john well old. max you know these guys are surely that's an interesting point you bring up you say that ok the fed is terrible we think when they should get rid of it but if you get rid of it what do you replace it with separate up another question is what if you were to reform the

sticking to a script dating back to janet yellen >> t bottom line is that i didn't see what the risk was foh fed to just say, you know, we'll wait until the next meeting or the couple of meetings and wait and see how things play out. they have raised rateti three s this year. when you look at the cumulative tightening into the system including the balance sheet, basis points for basis points it's 325 bpsz o tightening already in the system. we haven't seen that hit the broad economy ye >> some applauded the move specifically for not knuckling under the pressure from the markets. >> powell seems to me a level headed man who is doing his job. he is not intimidated. and we've had very low federal funds rates. they've been negative for years. it's about the time they come up to zero or something like that when the economy is showing signs of sength. so i'm compressed with what he is doing. and seems to me it shouldn't stir the markets a whole lot. >> part of the problem is that powell fed seems to have trouble managing expectations. investors clearly wanted a more dovish message than pow

paul volcker if that's still true right then we went over to bernanke we had the bernanke and the janet yellen put thirty years of an activist fed not steering or piloting the economy of the economy they are living on me they are the rest yes they are that's fine so who bails out the person who smokes and he doing the bailing out the less i want to thank god i'm on a show like this i could you know it's like a soundbite show i can actually expound on the so ok so we have something called the business cycle right max ok so you talked about one thousand nine hundred seven let's go back to two thousand and two thousand and eight what happens is there's a lot of debt out there and i saw you talking about it on on one your other shows lots of debt out there well how does that come from primarily from banks and shadow banks near banks ok. banks loan a lot of money to the private sector consumers and businesses they take out a lot of debt and then when they take on so much debt they can't pay it back it's supposed to happen is a mild recession ok but somewhere along the way the central banker said we

monday at 8:00 p.m., former federal reserve chair janet yellen in conversation with new york times columnist paul krugman talking about the 2008 financial crisis, the role of the federal reserve, and current risks she sees in the financial market. the city university of new york host the event. >> c-span's washington journal live every day. coming up monday morning, former u.s. small business administrator karen mills talks about the by policy center recommendation to bolster small businesses. and, the white house proposal to overhaul the postal service. a conversation with kevin cozart. be sure to watch c-span's washington journal, live at 7:00 eastern monday morning. join the discussion. on tuesday, likely incoming house speaker nancy pelosi and senate minority leader chuck schumer met with president trump to discuss border security. the president is asking for $5 billion to complete a wall. house democrats have proposed about $1.6 billion for the project. parts

it might be the republicans are saying the fed needed to raise rates from janet yellen was chairman.it's a little bit of an argument for them to now say the fed should not raise rates. it is helpful to chairman powell i think that he has that strong relationship. host: we referenced this big week in the stock market for party for investors. one of the invest -- one of the drivers was the china fed policy and we just learned about the huest of cfo of wall way -- ihue. what are you beginning to understand about the initial pressure of this arrest? >> it's hard to figure out what the president is making on trade. larry kudlow is contradicting things the president said they are to earlier. and it's very clear that the president wants a big win on china, he wants to say that he made a great trade deal and the real problem is what he identified with chinese anticompetitive behavior but the same time, it's hard to know what he's going to concede at this point we are not even sure if the agreement is real. it's reading the tea leaves and hard-to-find at this point. host: for both of you, fir

. >> janet yellen is now professor of at the university of california berkeley. as they talk about the 2008 financial crisis. the role of the federal reserve, and current risks in the financial markets. we will have that here on c-span. >> a government shutdown will happen on friday if a spending deal can't come together. latest on those negotiations -- . how optimistic is the white house and congress that the shutdown can be avoided? guest guest: there is it? aer that so far -- that is question mark so far. upre is a risk if they come with a deal that not enough republicans would be here to pass it because lots