madame lagarde talked about the unemployment picture. whatever news you want is in the unemployment picture. if you look at the headline unemployment rate, yes we have very good news. if you start peeling back the unemployment rate, you can find some less good news. last month, we had negative wages. we are not pulling people into the u.s. job market. yes, we can have headline unemployment rates go down, that no one is looking for jobs because they think the jobs out there are very low-paying. on the inflation point, there is no inflation in the united states. you're not close to the fed's 2% target. we are nowhere close to 2% on wages and commodity prices. i think we are a long way from that. >> larry, what do you think the fed should be looking at in setting interest rates -- activity or inflation? >> inflation. the phillips curve is a constantly changing, ephemeral relationship that does not provide a consummate basis for tightening. the risks are enormously asymmetrical. they settle a spiral towards deflation. the fed should not be f

madame lagarde talked about the unemployment picture. what ever news you want is in the unemployment picture in the u.s. yes, we have very good news. if you start peeling back the unemployment rate, you can find a less good news if you look at the wages not getting wage inflation. last month, we had negative for wages. if you look at the participation rate, we are not pulling people into the u.s. job market. we can't headline unemployment rate to go down but no one is looking for jobs because they think the jobs out there are low-paying. on at the inflation point, there is no inflation in the united states. we are not close to the said'-- the fed's 2% target and that seems to be everybody's target in the world. i think we are a long way from 2%. >> larry, what did you think the fed should be looking at activity or inflation? >> activity. larry's curve is a change or relationship that does not provide a confident basis for a tightening. the risks are enormously asymmetrical of setting off a spiral towards deflation. if he said should not

thank you for joining us, madam lagarde. >> pleasure. >> i have to ask about the news this morning.he swiss national bank lifting the floor getting rid of the floor on the swiss franc. is that the right way to do policy? a surprise action by a central bank that rocks markets globally? >> well, clearly what is needed is cooperation, collaboration, communication, i've advocated that and the imf is strongly supporting frens p, for instance, the policy of janet yellen who is communicating very clearly. this was a bit of a surprise. i would hope that it was communicated with other colleagues from central banks. i'm not sure it was. and i'm going to reserve judgment on the pert nence of that move because we have not discussed it with governor jordan and i would certainly want to understand where he's come from. i think i understand why he's doing it, but talking about it would be good. >> it begs the question, when you open up the imf's web page it says that one of the things that you are responsible for is global exchange rate stability. were you contacted about this? did the imf know th

let's start with madame lagarde. >> europe versus u.s.. talking about banks. lagarde stuck up for europe. i know she is done so in the past, but i asked her, who does she think she pulled a most weight politicians, central bankers, is it the experts that we have seen or is it regulators because of the banks? she said, they all have to come together. she is very diplomatic. let's have a listen. >> they all need to pull their weight. 2015 is a critical year for all of the reasons we discussed, but also because there are big trade-ins on the table that need to be wrapped up. there is a big climb until that was certainly fueled an offer opportunities. there are development objectives. those are three key agenda items. the role of policymakers, business, bankers, all have to really rally around those jobs and growth objectives in the context of those big deals. >> we are expecting european qe today. the problem is, will the central bank to enough to kickstart growth? we looked at the space and said, first of all has qe worked? >> there's a phenomenal difference. you

. >> madame lagarde, i'm sorry.t was fraction french. >> these are external shots of the printing factory where the two suspects who remain at large are reportedly holed up. >> one witness says he took hands -- shiooook hands with one of the kouachi brothers. he posed as a police man and then told the witness to leave when they took over the printing factory saying, we don't shoot civilians. >> the shades of this -- we have a great guest for you today. >> they headed into a printing building and reportedly taking a hostage as well. what are your thoughts on what is next? >> clearly, these two terrorists did not have a well-planned escape route. nor have they had the funding necessary to effect a proper escape from the paris area. early indications are that these two terrorists failed to do the proper surveillance for the initial attack on the charlie hebdo magazine. they proceeded to the wrong building. although it appears that they had terrorist training and knew how to operate automatic weapons, tactically they ha

it is my distinct pleasure and honor to present you may download guard who will share -- madame lagarde. thank you very much. [applause] >> thank you very much. and good morning to all of you and happy new year to all of you. this is my first public appearance. i am delighted to be here at the council on foreign relations to speak about the world economy as we see it from the perspective of the imf. i think the council -- i was checking just before i came in. the council and the imf has something in common. they were both created after world war conflict. the council after the first world war, and the imf after the second world war. our genesis certainly has something in common. and you are clearly focusing on peace and stability, and a mission, as embedded in the articles of the imf, founded in 1944, precisely stability and prosperity. there is no better moment and the beginning of 2015 to talk about prosperity and certainly to talk about peace. i think it is particularly important in 2015 because from a personal perspective, i can assure you that teamwork, team spirit, and a collectiv

. >> madam lagarde, also a pleasure to hear you speak. first of all, i want to thank you for being such a strong advocate and voice for women's empowerment. i really enjoyed your comments. i have a question for you, because it's something we're really struggling with you. it's totally indisputable, in my opinion, to achieve one if not all eight of the mullenium goals. when it comes to the post 2015 agenda and 20 year anniversary of beijing, we're still struggling with not the Ñ#ou(u(áq'ess of gender equality. how we encourage multi-lateral institutions, governments to take this more seriously. atmosphere strategy not just a nice thing to do as you said. >> i agree with you that the aparns has largely been achieved achieved. i'm not sure the economic opportunities have been identified sufficiently on a very precise basis because at the end of the day there is so much you can say about moral imperative. some people will turn their nose away and say only interested in economic results, bottom line or whatever. that's where we need to continu

madame lagarde know you? >> she's known me for awhile. from my musical? what do you mean?playing tonight. no, i'm just kidding. shameless plug 762. >> she also gave a speech. but she had no idea that was coming from the swiss national bank, right? >> that they were going to let the floor go? no, she had no idea. >> what else would i be talking about? yes. she had no idea? nobody did. that's weird, isn't it? >> you would think they would go on because people would front run it. >> the bank itself i don't think -- it shows the dangers of using exchange rate policy wind of instead of monetary policy. >> but why didn't they say something this couldn't last forever. give hints we're out there to help everybody figure out. >> becky, put your finger on a currency trading button and i'm a central banker and obviously this can't last forever. buy buy buy buy buy. >> you see a drop of 8% in stocks instead of -- >> but the fed's been saying that the last six months. nobody's hitting that button. >> did it occur to you that because it was pegged at the euro switzerland's currency the