my discussion with the former treasury secretary larry summers and conservative thinking niall fergusonplus, president trump's foreign policy and the rise and rise of china. my conversation with kevin osnos of "the new yorker." ♪ ♪ >>> "amanpour" on pbs was made possible by the generous support of roslyn p. walter. ♪ >>> good evening, everyone. welcome to the program. i'm christiane amanpour in london with the global perspective. the american president takes every opportunity to tout america's booming economy as the success story of his first year in office, whether on twitter, last week at the capitalist mecca in davos, switzerland, or tomorrow during his state of the union address. >> there has never been a better time to hire, to build, to invest and to grow in the united states. america is open for business and we are competitive once again. >> so is president trump's tax reform responsible for reversing the american carnage that he deride it at his inaugural last year? and is the boom sustainable? joining me now from new york is the economist and former u.s. treasury secretary larr

who is larry summers to be talking here? the fact of the matter that nancy pelosi and larry summers scoffing at case of 1000 or starbucks $2500 given to employees, i heard neil cavuto talking to you at the beginning of the show, be very careful how condescending we're being to people. that may be difference them taking a vacation this summer. walmart, several thousands of dollars going back into the consumer's pockets that will make a real difference in the economy. trish: scott, this is driving me crazy, basically the last 10 years, when i looked at lack of wage inflation, that was a real problem. the idea we were not getting any economic policy out of washington. forget the $800 billion stimulus that literally went nowhere with obama in his term, that was nothing. we were entirely reliant on the federal reserve. you know what that did, that created a two-tiered economy in some ways because the only people that benefited from that were people with capital. so, scott, for the democrats, i mean, i look at the policies, the ec

to get your take is well on what is happening with the u.s. 10 year paper, but let's hear from larry summersut what he thinks about the current level of yields. larry: if markets become more alarmed, treasuries are where they go. as many as confident observers that yields are going to rise sharply from here. yousef: do you agree or disagree with larry summers that yields are pretty much going to state range bound for the foreseeable future? yes, the risk of anti-trade policy from the trump administration is one, the risk of government shutdown is the other. those two factors basically mean that it is elevated and the demand for treasuries are high. that's exactly what he was alluding to. but that would suppress yield. for me, i think there is a bigger [indiscernible] 2.65%,ields have risen the highest since 2013, 2014. that flow is to move away from u.s. treasuries into other assets as global growth improves , as well as the tax reform, it clearly will boost the economy through the fact that it is not revenue neutral. mean you should expect higher growth and higher inflation. for me, the big

and ultimately i want to see a strong dollar. >> joining us this morning larry summers, former treasury president emeritus at harvard university who also just wrote a piece in "the washington post" about mnuchin's comments mr. secretary, it's always good to have you. good morning. >> good to be with you >> the take on mnuchin is that he said publicly what historically secretaries have kept private and that's what got him into trouble, is that what happened >> well, yes, but most secretaries haven't favored a weaker dollar. so i don't know where his views actually are but he certainly made a mistake by not speaking in a carefully scripted way and not emphasizing the importance of financial soundness. >> does the president's follow-up to they saying the dollar is going to get stronger and stronger ameliorate any of your concerns? >> yeah, probably a little bit on the other hand, i always thought presidents i work for always thought that it was a big mistake for a political leader to make forecasts as to what was going to happen in markets no one really knows what's going to happen next in

we'll hear from larry summers. later, conversation world war i and president woodrow wilson. >> c-span, where history unfolds daily. and 79 c-span was created as a public service is brought to you today by your cable or satellite provider. >> recently the communicators were with -- their own by gnocchi, a finnish telecommunications company. we talked with the president at the lab's headquarters in new jersey. >> where are we? we are in bell labs, with like to think it's very relative in the future as well. just about every technology the operation system the other communications, your apple phone or other phones satellite communication, we consider ourselves the foundation of the internet. >> who owns bell labs today? >> the company will remember from the 33-ten, did you ever have one of those phones? sort of a wedge. when that evolved is sold to microsoft and microsoft shutdown. another day on the network part of it. >> is much more on the network side of things. >> this is interesting because it's for the good of

and those costs are the ones that larry summers and others this afternoon discussed. so i think there are other ways that you can broaden it out. for example, the example of taking an average over a longer period of time has some attributes of that. but i do think that it does help to actually talk about it in a public way. communicate it clearly. and whatever your framework is, it's going to make a difference for policy. so if i'm picking a five-year average or a one-year average or only looking forward, i'm going to have a different policy prescription. so when i'm thinking about my monetary policy and what interest rate is optimal, it's within the framework we adopted in january. if we had a price level target right now i'd not be recommending the same monetary policy prescription as the current framework that we have. to the earlier question that kristin was talking about, frameworks make a big difference, because our policy path would be different depending on which framework we pick the. how much risk you're willing to take for inflation being above 2%, or being

monetary policy hearing from former treasury secretary larry summers. >> good afternoon. director they bring greetings from the hutchins center somewhere it was canceled he cannot be with us today but he is probably watching on his phone or weighing in on everything i did wrong. but we think the question that the backward looking question our thinking about is how did that policy work? and could be considered conventional policy but one of the questions is given everything that we know that is the right one. nobody anticipated we would have so many years or no did we think the long one -- long-run equilibrium the members said they expect to be at 3% that means there's not a lot of room below zero. so when we first conceived of this event may felt this was a discussion that was important because if you start talking about this you froze the market so you don't talk about it in public. so we were wrong that fomc members are afraid to talk about it and the number regional on -- regional fed bank presidents including janet yellen herself but it cannot be left to the policymak

treasury secretary larry summers.ds today in both the "financial times" and "the washington post" to that effect. we're going to talk with him about that, why he says it. that's next. this is bloomberg. ♪ >> this is bloomberg daybreak. let's get you caught up on market action. s&p futures have turned green, although perhaps just a little bit, up to .1%. ftse 100 is also up, climbing a bit more. you can see the 10-year yield have declined by one basis point. 10-year yield in spain declining after fitch upgraded that economy, and michael mckee of bloomberg television was pointing out that the gap between spannish and german 10-year yields has narrowed to the least since 2010, sort of key measure that people look at. let's flip up the boards and get a sense across assets. the u.s. dollar is weakening against the south african rand. this come as a growing number of investors believe that the new government in south africa will prompt the economy to do better. chinese 10-year yields do dip just a bit after almost reaching

so this conference started by larry summers talking about the fact that very low interest rates for a long time were both quite likely and quite costly. the second panel then talked about what are the possible solutions, giving a number of different frame works that would make that less likely or less costly. the third panel put together a group of stakeholders and talked about more broadly how the various stake holders should care about this issue. and this final panel is really to talk about process. and so i am going to talk about process in this panel rather than necessarily go into detail about the various proposals that have already been discussed. so we heard what bank of canada did, and i think it was a very clear presentation, so thank you very much for that, john. i'm going to put it in the context of how applicable is this to the united states. there are a lot of differences between the united states and canada. i'll start with, we start with a very different frame work. so we do have a dual mandate, so it's maximum sustainable employment and stable prices. we've explicitly

experts, including former federal reserve chair ben bernanke, and former treasury secretary larry summers, talked about the current inflation target of 2% and whether changes are needed. it's 2:15. >>> good afternoon and welcome. i'm david wessell, director of the brookings. thank you for coming and people joining us online. i bring greetings from glen hutchens, the benefactor of the hutchens center, whose chartered plane was canceled so he can't be here today. he's probably watchology his phone and will undoubtedly be weighing in on everything i did wrong in the first opening segment. when we think that question of rethinking the 2% inflation target is one of the most important questions facing monetary policymakers at the moment, you might say that the backwards-looking question we need to think about, which we at hutch.scenter are thinking about, is how did unconventional policy really work? and should unconventional policy really be considered conventional policy? but we look forward, i think one of the -- you'd have to argue one of the biggest questions now is whether, given everythi

david: larry summers has written , piece for the financial times on the eve of his scheduled visit to. he talked about his concerns about geopolitical risk. the bond market is pricing in that risk, and reports that president trump may be cooling off on wilbur ross. we started by asking whether treasury yields will keep on rising. hard to say. if markets become more alarmed, treasuries are where they go. as many as confident observers that you folks are going to rise sharp we from here. scenarios, a scenario where the economy strongly whereow markets stay call him and there is no geopolitical stir -- disturbance. scenario, you see the fed tighten more now that it is priced into the market. i suspect you will see a meaningful upward move in long rates. there is also a scenario where some uncertainties come more into focus. if that were to materialize, you could see equity markets selloff and in that scenario, 10 year yields would meaningfully move downward from here. >> what is the potential low for a 10 year yield in that scenario? >> i think if we have, i guess the way i would approac

we will start with larry summers former treasury secretary and then my colleague wilshire from appear larry summers. >> my job at a conference i am not in government should surely be provocative and be sound but my proposition is the first proposition the current framework likely to involve unnecessary costs of lost output with $100 billion per year. and a proper better framework that ultimately aspired to with nominal interest rate and to develop these in several stages. within that current policy framework to have historical standards very low rates for a very large fraction of the time. even in good economic times. even to share the feds view in the neighborhood of 1% falling short of that 2% inflation target. with a good rule of investment --dash to be revised in one direction. so it is my judgment for further reduction are more likely than further increases. it was due to the long run libor with 2.3%. less than 2.8 but the market is projected that expected value as a reason for that discrepancy. but reasonable judgments if we continue to operate in our current framework in good t

there is a cost, if we hit the zero lower bound frequently, and very hard like larry summers did discuss. and i think we're in an environment right now, where we're likely to have fairly low interest ritts, i think we haven't talked a lot about what the costs are, larry gave some numbers. i think monetary policy effectiveness is not nearly as -- we're not -- we can't get out of that situation as easily as we have thought, in fact -- the fact that neither europe or japan have gotten out of that situation yet kits how difficult it can be. so i think we have to take that and think a little bit about, what does it mean, if once you hit the zero lower bound, you may be there for a prolonged period, what does a prolonged period mean? there are income inequality issues, a difference between savers and investors. lots of things you have to think about in terms of financial stability. if you have long periods of very low interest rates. i think factors those in should give you flexibility in your monetary policy framework than we currently have. >> the bank account is reviewed. the other question

larry summers recently at a brookings institute speech said that the fed normally raises to 500 basiss, 500 basis points when there's a recession, when the economy doesn't act well and obviously he was pointing out we don't have 500 basis points anymore the point is we haven't been calibrated right for a long time and in all deference to larry summers i do totally agree with him on this and the notion of the fed buying insurance and raising rates was something that many have been talking about a handful of years ago we should have taken out that insurance, like a long-term chart. i've had plenty of charts with cpi data that showed we had more cpi-type inflation prior to our first tightening at the end of 2015 the fed is offsides a bit, the metric isn't relevant in the form of 2%, but we do need insurance, but not 500 basis points worth you have to recalibrate both sides of the ledger. carl can a, back to you. >> interesting times, rick thank you for that meanwhile, the s&p is now having its best start to the year since 2003 our commentator mike santoli is backhere at post 9 rates gett

we'll hear from larry summers.later, conversation world war i and president woodrow wilson. >> c-span, where history unfolds daily. and 79 c-span was created as a public service is brought to you today by your cable or satellite provider. >> recently the communicators were with -- their own by gnocchi, a finnish telecommunications company. we talked with the president at the lab's headquarters in new

number of people i have known well in academic life like ben bernanke, janet yellen, stan fischer, larry summers were all in policy positions. and so there was a natural ease of having a conversation about these questions. you know, tim geithner, who did not have an academic background, but he had been in the treasury a long time. that was very important, i think, in tim being able to interact with people around the world because he knew them all. i think if he had arrived in office only six months previously, it would have been very, very difficult. and he had experience in the federal reserve bank of new york and then in the u.s. treasury, so i think the continuity there, knowing people, having had a long time in your career where you have had a chance to think through what you really believe about why banking systems are fragile, what causes disruptions, what is the right way to respond to it, these things were very important. and i think one of the problems that the political side had was that deep down they did not really understand these issues. and they thought my god, it is a crisis. we

policies and his cheerleading rhetoric have without question boosted business confidence, which as larry summers often noted is the cheapest form of economic stimulus. but whatever you think of the policies, the larger point is that trump the conventional republican is working within the american system, rather than trying to destroy it. it's possible the weight of the presidency and challenges of the job pushed trump toward a more sober and responsible path. it's also possible that trump simply decided for now, for one day, to side with his moderate advisors. he often seems to be an unstable compound of trump's one, two and three on a single day tweeting out juvenile absurdities and lashing out at democratic institutions but then also promoting some sensible policy. even at davos, he couldn't stop himself from attacking the news media and repeatedly making false or misleading claims. the mood this year among the global elite at davos was upbeat. the world is experiencing synchronous global growth, something very rare. but underneath this good cheer there is this quiet. partly because people rem

anchors too many to name, cnn analysts, citigroup economists, the new york times, mit economist, larry summers, steve ratner, mitt romney and nancy pelosi. your thoughts here? ben: impossible to predict the stock market either up or down. best thing by the index, just hold on for dear life. i personally think the market is a bit high but don't worry about what i say. i'm very often wrong, but the market is not wrong, show stay with the index that's going to keep going with them. it does seem as if the market doesn't have that much room to grow but that's what people often say. markets climb on walls of worry and this is a typical situation for that. what my worry is is inflation. this economy has become so strong, mr. trump was right. we're going to get tired of winning and we keep winning at this rate we're going to have inflation and we do not want inflation, so but i think the economy has been a miracle success story. don't put your trust in pundits but not your trust in prediction s about the stock market by the index hold on to it. liz: you know ben, a lot of companies taking big hits, th

, trish, if you go back to 2010, the geniuses on the president's counsel of economic advisors, larry summers, jason furman, were projecting in 2011 there would be 3.8% gdp growth around in 2014 it would be 4%. based on these policies, coming out of recession there was cycle, no matter what they did they would get the benefits of it. guess what? it didn't happen. bad economic policies means you don't have growth. good economic policies incentivize businesses to grow. guess what they do? they grow. trish: they grow! imagine that. out ever point out to the viewer the president is arriving on capitol hill for a bob dole event. we'll continue watching that for you. but, andy, my goodness, you know, 3%, 4%, jamie dimon, the ceo of jpmorgan saying 4% growth. i spoke with carlos ghosn who runs nissan mitsubishi. he said these economic policies are really phenomenal. they are revising all estimates for car sales. they didn't think car sales would be so great. now he said we have a much more optimistic picture. >> nissan, another good nashville company where i moved, art laffer lives. nashville is pop

. >> larry summers, very tough prescription. thank you very much for your diagnosis.d coming up, fighting back. mayors from across the country boycotting a meeting with the president, after a surprise crackdown on sanctuary cities. the leader joining me next. there's a vacation at the end of every week with hilton. whatever type of weekender you are, don't let another weekend pass you by. get the lowest price when you book at hilton.com (gasp) (singsong) budget meeting! sweet. if you compare last quarter to this quarter... various: mmm. it's no wonder everything seems a little better with the creamy taste of philly, made with fresh milk and real cream. with the creamy taste of philly, your heart doesn't only belong ♪to you. bye grandpa. and if you have heart failure, entrusting your heart to entresto may help. entresto is a heart failure medicine that helps improve your heart's ability to pump blood to the body. in the largest heart failure study ever, entresto was proven superior at helping people stay alive and out of the hospital compared to a leading heart failure

paul: james, some of our friends on the right -- i mean, on the left, rather, larry summers called itueling things but also the short-term tax cut, perhaps, anticipation. so it's all phony. what do you think? >> yeah. well, keep in mind a lot of those people were saying in october of 2016 that a trump win would tank the markets. so we have to realize that these are people who have been wrong a lot lately, and what they've especially been wrong about is the idea that the obama new normal was as good as it gets. paul: secular stagnation -- >> secular stagnation was the term and thisç belief that the u.s. economy can't grow the way that it used to. i think we're seeing lately that it can. i think we should expect that will continue because we just got a historic -- i know we've talked about mr. trump overstating things, but he did not overstate, this is the biggest corporate rate cut ever. we're going back to the corporate income tax rate of roughly 80 years ago. so this is a huge -- paul: that's before you were born. >> a little bit, yes. huge pro-growth stimulus for the economy, and i

and monetary policy with former federal reserve chairman bernanke and former treasury secretary larry summersposted by the brookings institution, it is lied at 1:00 p.m. eastern on c-span 3, live on c-span.org, and on the free c-span radio app. c-span. where history unfolds daily. a 1979, c-span was created as public service by america's cable television companies and is brought to you today by your cable or satellite provider. ♪ >> this week on "q&a," hendrik meyer. he talks about his book "arthur vandenberg: the man in the middle of the american century." >>

coming up, we will talk more highlights from bloomberg's interview with larry summers on geopoliticaln his nes -- and what is next for treasury yields. ♪ >> what'd you miss? three summers is not sure about the direction of treasury yields. anders joined david westin lisa earlier to discuss. it is hard to say because if markets become more alarms, treasuries are where they go. i am not as confident as many observers that yields are going to rise sharply from here. two scenarios.re there is a scenario where the economy continues to grow and where markets stay, and there is no geopolitical disturbance. i think in that scenario, you will see the fed tightening more than what is now priced into the market. i think you will see some meaningful upward move. a scenario areso some of the a scenario are some of the uncertainties come into focus. i think if that were to materialize, you could see equity markets sell off. and that scenario, i think 10-year yields would meaningful move downwards from here. lisa: what is the potential low for 10-year yields in that scenario? look, i think if we hav

wilbur ross came on our show and said the media in attend dance took that comment out of context larry summersjason fuhrman putting out notes, letters, statements, saying this was a big mistake, it would only invite retaliation but then steve mnuchin was on a panel hosted by cnbc this morning, here's what he had to say in response to all of that >> so my comments have been that in the short-term where the dollar is is not a concern of mine that is will fluctuate that in the short-term there's obviously benefits and issues with a lower dollar. in terms of the benefits, it's beneficial for our trade imbalances there are also issues for people who hold dollars so i want to be clear on acknowledging both in the long-term i fundamentally believe in the strength of the dollar it is the reserve currency, i believe it will continue to be the reserve currency given the strength in the markets. >> the dollar dived yesterday on those comments i thought it had come back a bit, but unch now. >> the "wall street journal" takes the trump administration to task for comments because the dollar -- >> cite the "

thinking about this event and in what we wanted to accomplish here, what we set out to do was to have larry summers make the case why we should think about this, have a number of very experienced monetary economists who have views about what

afternoon we will hear from former federal reserve chair ben bernanke and former treasury secretary larry summers about inflation and monetary policy. that is life from the brookings institution at 1 p.m. eastern on c-span3. you can also watch online at c-span.org or listen on the free c-span radio app. >> the deadline for cspan's studentcam 2018 video documentary competition is right around the corner. it's january 18. we are asking students to choose a privation of the u.s. constitution and create a video illustrating why it's important to you. students across the country are in the final stretch and sharing their experience through twitter. these students participated in a studentcam film festival. this group wrapped up an interview on climate change. and the student learning a lot and having fun while editing. our competition is open to all middle school and high school students grades six through 12. $100,000 will be awarded in cash prizes, and the grand prize of $5000 will go to the student or team with the best overall entry. for more information go to our website, studentcam.org. >> next,

larry summers made a presentation yesterday.hat means the recovery is delayed long enough that the economy growth is cut by $1 trillion over a decade and that is a real loss to every citizen. david: how much of this is what i would think of as real inflation as opposed to just expectations and is the fed no -- >> expectations has become a critical component of how you figure inflation going forward. the fed targets inflation expectations really because they want the markets to believe that inflation is going up. but how you do that, this inflation targeting idea. the range would give markets and some reassurance that they are ok. the idea is to bring expectations up in the markets first and then over the longer when weyou and me and do our salary negotiations with our bosses and that sort of thing. look athave to take a dollar-yen. at one point it was the only currency that was up against the dollar. what does that signal in the market? >> the thing about the boj is they have been conducting this program.gram -- qqe if you look

come back, much more on the president's comments from davos, joined by former treasury secretary larry summers on "squawk alley. a g. liberate your spine... aflac! and reach, toes blossoming... not that great at yoga ya but when i slipped a disc, he paid my claim in just one day. so he had your back? yup in just one day, we process, approve and pay. one day pay. only from aflac but prevagen helps your brain with an ingredient originally discovered... in jellyfish. in clinical trials, prevagen has been shown to improve short-term memory. prevagen. the name to remember. door buzzer hi. smells really good. thank you. more pasta. hey guys. hey! how are you? you bring the wine girl. some would shy away from throwing a big party in a small space. guys, it's a lot of food. but tonight, you're going to make the most of every square foot. with blue apron, any night is a chance to see what cooking can do. well, it'sonce again.eason >>yeah. lot of tech companies are reporting today. and, how's it looking? >>i don't know. there's so many opinions out there, it's hard to make sense of it all. well, victor,

afternoon, we will hear from former federal reserve chair ben bernanke, former treasury secretary larry summers about inflation and monetary policy. that is life from the brookings institution at 1:00 p.m. eastern on c-span three. you can also launch watch online at cspan.org or on the free c-span radio app. >> this weekend congress, the house returns today for the first legislative business of the second session of the 115th congress. this week's agenda includes a resolution tuesday supporting the right to the people of iran to free expression and condemning the iranian regime for its crackdown on legitimate protest. members will also consider legislation thursday to reauthorize provisions of the foreign intelligence surveillance act. that is set to expire on january 19. the same day current government funding runs out. the senate also returns today at 3:00 p.m. eastern. they will consider the nomination of william campbell to be a district judge for the district of tennessee with the vote to advance at 530 eastern. for the rest of the week the senate will take up other judicial nominations fo

bloomberg, a conversation with larry summers. his essay in the washington post was quite important. with us. from davos, switzerland, this is bloomberg. ♪ taylor: this is "bloomberg surveillance." i am taylor riggs. there is a huge deal today in bioverativ has, been bought. sanofi is looking for new products for its best-selling diabetes drug. takemont has agreed to full control of metaphor day. -- otto porter -- net- a-porter. backwiss bank will buy $2.1 billion of stock over the next three years. it will merge its wealth management is this is. the ultra fast fifth-generation of wireless boon fory will be a t-mobile. it will benefit from revenue sharing agreements. he held the benefits of having a major presence in the u.s. and the positive impact of the republican tax overhaul. >> being in the u.s. is great benefit. it is a growing market. where the payback of your investments is something which is predictable. it is not something regulated as it is here. with the tax reform, we are even getting tailwinds here, so it is supporting our investments. taylor: that is your bloomberg bu

larry summers, the former treasury secretary on wires speaking on cnbc which he talked about these taxatever they're calling them, as a gimmick. again this follows on heels of nancy pelosi and others saying that 1000 bucks, chump change, crumbs, whatever. you know, whatever your point of view careful how you frame it, to folks getting 1000 bucks, 2500 bucks 5500 bucks in case of chrysler fiat. that is real money. might be a rounding error to some of you, might be a gimmick to some of you, but a gimmick they take to the stores and spend long before they see anything in their own paychecks. be careful being so condescending. trish regan, the dow is up about 130 points here, i think this is the battle royale on the left and right, trish. they either amount to something or they're nothing at all but i think most people would look at that and those bonuses, whatever the motivation, say, yeah, i like it. trish: that is a lot of money. you can't call it corrupts as nancy pelosi. neil: i can buy a lot of hickory farms cheese baskets with that. trish: hey, neil. thank you so much. president tru

one of the major panels of today, featuring some of the biggest names in economics, including larry summersne year into the trump administration. there are panels on things like infrastructure and health care, evaluating the obamacare programs. a lot on >> going on in washington and how it's driving the economy. tom: begin our discussion with professor bullard. the question everyone is asking is, whether the united states economy under donald trump, will we see faster growth and will be see bigger deficits that eventually leads the fed a higher inflation and leads the fed to move faster? >> you will see faster actual demand-driven growth as a result of the fiscal stimulus. potential growth will barely pick up. we are moving to an economy where deficits will rise, where slowly but steadily inflationary pressures will augment and ultimately the fed will have to do more than they are probably ssing -- tossing out. francine: go ahead. mike: i was going to ask a quick is -- how quickly this happened. >> the recognition of the reality as early as the middle of next year. the fiscal stimulus bill

larry summers wrote a great piece i thought prior to the election where he said the problem with theocrats and the progressives is they have no growth strategy, it's all redistribution, end inequality, that kind of thing he said growth solves so many problems and the inequality problem is one if you get enough growth, you'll get wage growth at the lower level and inequality will come down. i think right now the path of least resistance is higher i think there are things this year that could change that. we've got, you know, a debt ceiling bill and if we get a contentious thing like we had several years ago, that can cause problems. >> yeah. >> the election, itself, is going to be a lot of uncertainty around that. if we've got mueller's investigation -- >> yeah. >> so if that stuff comes through, just raising the level of uncertainty, you'd expect -- you'd see some blow-back in the markets. >> i like what you said, we transferred the volatility out of the marketplace into washington bill, thanks for joining us. >> sure. thanks for having me thanks. >> that's bill miller. >>> speaking

that's normalization after years were bond yields have been oppressed because people did not -- larry summersaid we would not get there with the global economy. it appears we have gotten there now. now the fed and other central things are moving away from the's monetary policy process. -- away from this monetary policy process. it is tough to transition from qe to no qe to higher rates to tapering without causing a major problem. clearly, it's about central things going gradually. if central banks look what they are behind the curve, the market will get spooked. francine: the german bond seems ot be -- i don't know the word. is there a danger that when the bond yield changes, the markets are not ready for it? lucy: i think the same thing applies everywhere. equities look cheap against bonds, but expensive against history. they will be affected by the rise in bond yields. but i think the point made about inflation is the major risk. if there's more inflation in the system then we think and the central banks think, that could be a source of trouble. and lucy james barty macdonald stay with us.

. >> former federal reserve chair ben bernanke and former treasury secretary larry summers are at the brookings institution today. they'll be speaking about the possibility of inflation in the u.s. economy. it starts at 1:00 p.m. eastern. you'll be able to watch it live here on c-span3. and coming up tomorrow here on c-span3, the senate finance committee will hold a confirmation hearing for the president's health and human services secretary nominee alex azar. he's replacing tom price, who was fired for taking expensive private jet flights and billing taxpayers. mr. azar's confirmation hearing is tomorrow at 10:00 a.m. eastern. again, see it live here on c-span3. >> c-span, where history unfolds daily. in 1979, c-span was created as a public service by america's cable television companies. and is brought to you today by your cable or satellite provider. >> the international energy agency says coal use will continue to decline across the globe as the use of renewable energy increases. the head of the agency's gas and coal division spoke about the forecast recently at the center for str

. >> you will see a lot of deals through january into the spring and the edge of summer. larry: nice. experts say that flights can help you -- experts say that apps can help veronica: you search for those deals. and i bet a lot of people are trying to get out of town. larry: including brazil. northern florida, even, seeing temperatures around freezing in the windchill. stress,now about heat but cold stress, where day after day, your body can't get a break. that's where we are right now. it's days seven and we could have five more days locked into this deep freeze. loudoun county, out towards winchester, frederick county, virginia, your windchill temperatures are five to 10 below zero. wind out there this morning. higher elevation in harrisonburg. look at this, two thirds of the nation is in the windchill advisory. mentioned florida down there. look at louisiana as well. today it will be around six degrees. in our area. houston, down south, typically belowseeing readings freezing for today. willctual air temperature top out at 26, 27 degrees. sunshine, yes, with a bit of a breez

we always talk about what's the risk of the market, i would add larry summers, we were going to havebal collapse and now added 7 trillion. ashley: just notice the swiss markets for anybody that's interested. that's also very encouraging speaking of global market and economy. stuart: very encouraging number for the economy, 250,000 new private-sector jobs created in the month of november, that's a good economic indicater, isn't it? >> there's no question about it. all those people who said the tax policies, the tax cuts will not engender that kind of hiring and investment, look, the evidence is in, manufacturers, by the way, some of the jobs are manufacturing jobs which we are happy to see, they are higher paid and better benefits and here is a prediction, in the first quarter we will see wage growth resume and it's highly time that we see that, i think the obama administration constantly underestimated how many people were out of the workforce, now people will be drifting back into the workforce but we will also see wages go up. ashley: what a difference, the obama economy, two or th

or 3% so the fed won't have the five percentage points it has to cut in the face of a recession larry summers conference said the overwhelming likelihood is that when recession comes policy won't have sufficient room to cut rates as much as it would like to within the current frame work some fed officials and economists are thinking about how to get inflation and interest rates up so there is ammunition to fight the next downturn currently the fed target is 2% inflation level and that target is mostly missed, almost entirely, since it implemented in 2012 it continues to shoot for that rate while it misses the goal increasingly experts are talking about alternatives like price level targeting. the fed would aim for a level in the price index, keep rates low until it hits that level it could convince markets and consumers of the fed's commitment to higher inflation practically any change is a long way off jay powell habsn't been approved by the senate any change could be a year or 18 mpts away. i want to bring it to you because fed officials are talking about it now trying to figure out how to

when he brought in tim geithner from wall street, he brought in my dear brother larry summers. a tack but at the same time at that time tied to deregulating neoliberal policies. it was clear he had wall street-friendly, drone presidency escalating and, therefore, a lot of the progressive rhetoric and that audacity of hope would become empty in regard to poor people and working people. symbolically, he was masterful. what i mean symbolically, is to have a black face in the highest place in the american society empire in government meant that not only had he made progress, which we had, but we had black people being empowered. we were in power for eight years, and you look around at poor people, look around the ghettos, look around the schools, look around at the massive unemployment and the massive incarceration, wow, who was in power for eight years? they're the ones who did very well, ask the folk in prison, ask the folk in the hoods whether they were in power. not at all. there was a failure of nerve not just among barack obama, but among intellectuals, black intellectuals be

riders will recall that this idea, popularized by former obama white house economist larry summers heldica is fated to endure slow economic growth but the point is that tax -- that economic policies matter. the growth rebound in 2017 show that secular stagnation isn't destiny, it was the result of policy choices by the previous administration i thought you would love that. >> yeah. >> then finally this conveniently justified the obama era's historic slow growth as inevitable deus ex machina so those are just -- i had that built. i didn't -- i wasn't here to do it i knew that you -- if i didn't do that for you, andrew, that was in the weekend wall street journal when i got back. >> you want to make sure that -- >> i want to make sure that everyone -- do you disagree with anything that was said there the journal editorial writers are pretty smart, i think. >> they are. look, turns out that new normal of the very sluggish 2% growth as far as i can see for america was wrong and is wrong and policies do matter you can feel it. and i'll tell you, too, back home on main street it's not just sm

>> absolutely paul krugman comes from the same kind of place larry summers does, the ivy league.fe. look at the way they run those places, what microscapes and aggressions and everything else, is it no surprise that most of their graduates when they show up in business these days are useless? pete: yeah it's true if you don't teach the fundamentals what do you got? >> at maryland we teach the good old fashion stuff. lisa: i'm a tennessee grad. pete: and i went to two ivy league schools. lisa: pete get out of here. we're together on this. pete: thank you, appreciate it great stuff. up next, was your new year's resolution to go on a diet? so which ones really work. mine was not but and which ones do not. we've got an expert to serve up the truth on food in the new year, next. lisa: going to get hit with the truth, pete. ♪ (burke) at farmers, we've seen almost everything so we know how to cover almost anything. even a swing set standoff. and we covered it, july first, twenty-fifteen. talk to farmers. we know a thing or two because we've seen a thing or two. ♪ we are farmers. bum-pa-

larry has just taken the oath of office as philadelphia's attorney. he wants to keep fewer people behind bars. he is also opposed to the death penalty. he replaces williams who we signed last summer and then was found guilty of bribery and other charms. will yaps was sentenced to five dpreer dpre years. >>> she says one of her top priorities will be to look at mismanagement there. >> time >>> time is now 11:09. time to check in with jessica boyington. >> yeah. it happened a few hours ago, an accident on 322. so route 322 is closed between 295. portions are getting a delay in back up. that is closed heading to the bridge where some of you may be in a sticky spot. slow right here because of slow movining maintenance vehicle. we are at a 27 minute drive time there where some of those vehicles are moving slowly. down to 30s for speeds. should be about 15 miles per hour like the southbound side. back to you. >> thank you. >>> the eagles have two weeks to prepare for the nfl playoffs. head coach doug peterson will talk to us this afternoon. there are reminders about what could have been with now injure reasonable doubt quarterback carson wentz. we are keeping hope alive. the eagles wil