. >> nikkei newspaper. mr. chairman, we have seen greater volatility recently in japanese markets.equities, jgb, and foreign exchange. some say this is due to uncertainty in the federal reserve monetary direction. others say it is lack of confidence in the bank of japan monetary policy. how do you view the bank of japan's efforts? do you still support bank of japan policy? the other question, how much do you pay attention to the spillover effect to international markets when you consider exit strategy? >> i think the volatility is mostly linked to the bank of japan's efforts. which seems logical, since in earlier episodes when the fed was doing asset purchases and the doj was not doing anything, there was no volatility. it seems logical that the change here is the change in boj olicy. the boj is fighting against entrenched deflation. deflation has been a problem in apan for many years. expectations, public expectations are for continuing deflation. it takes aggressive policies to break those expectations and get inflation up to the 2% that the bank of japan has set. that's why it i

nikkei newspaper. mr. chairman, we have seen greater volatility recently in japanese markets.jgb, ands, foreign exchange. some say this is due to uncertainty in the federal reserve monetary direction. others say it is lack of confidence in the bank of japan monetary policy. the bank ofiew japan's efforts? do you still support bank of japan policy? the other question, how much do you pay attention to the spillover effect to international markets when you consider exit strategy? >> i think the volatility is mostly linked to the bank of japan's efforts. which seems logical, since in earlier episodes when the fed was doing asset purchases and the doj was not doing anything, there was no volatility. it seems logical that the change here is the change in boj policy. boj is fighting against entrenched deflation. deflation has been a problem in japan for many years. expectations, public expectations are for continuing deflation. it takes very aggressive policies to rake those expectations and get inflation target the bank of japan has assessed. that is why it is difficult. to be -- th

. >> i'm from the nikkei newspaper. thank you, chairman. cently we have seen equity and foreign exchange. some say this is due to uncertainty to the monetary policy direction, but others say this is due to lack of confidence to the bank of japan's monetary policy. so how do you view of bank of japan's efforts? do you still support bank of japan policy? and other question is, how much do you pay attention to the effect of the international market when you consider its strategy? >> well, i think the volatility is mostly linked to the bank of japan's efforts, and that would seem logical since an earlier episode when the fed was doing asset purchases and the b.o.j. was not doing anything, there was no volatility. sort of seems logical that the change here is the change in b.o.j. policy. the b.o.j. is fighting against a very difficult, entrenched deflation. of course, deflation has been the problem of japan for many, many years, which means that expectations are very much the public's expectations are for continuing deflation, and therefore, tak

nikkei thinking over in japan. global selloff. pretty open i said the trend remains to the upside. dagen: edward snowden now telling a chinese newspaperhat the u.s. is launching a massive hacking off her. connell: to put it all together for us, peter barnes. >> .subject of the hacking scandal , the director has been defending these programs. had they been in place before 9/11, they may have actually been able to stop 9/11. these leaks have been damaging. >> we are taking all necessary steps to hold tte person responsible for these disclosures. >> these programs are legal under u.s. law. congress has been repeatedly raised about them. snowden is the target of a criminal investigation. there has to be a proper balance. the administration grees with that. they are willing to work with congress to tweak the policies and programs to make sure that that balance is in place. connell: peter barnes on capitol hill. dagen: monica crowley is here now. yesterday, general alexander, the head of the nsa, woods noted that he could tap into any americans phone or e-mail, alexander says that is false. >> there are a lot of parts of his story that are