a regulator like paul volcker that says, you know, we're going to stick to this plan, i mean, do you think that there's an argument to be made around that? it's sort of, i guess, the great man theory of history. >> guest: no, i'm not really much -- i don't care much for great men theories. [laughter] that's caused a lot of trouble over the years. >> host: and we'll get to the autocrats and foreign policy in just a minute. >> guest: but volcker was a special guy. he knew what he was being hired to do by president. he was -- they didn't, he got that job to do what jimmy carter wanted him to do which was kill inflation. which was, you know, it was a big political problem. and volcker knew how to do it. he was a banker, and he -- i'll give you a little story about that. >> host: please. >> guest: he called bob bartley and me over to the new york fed right after he was hired and gave us a nice lunch, and then he said, okay, when there's blood all over the floor, will you guys support me? and i held up my hand first. i didn't give bob a chance. [laughter] we both agreed, yes, we would. and

the fed whether it is janet or alan greenspan or paul volcker whenever good and have never been good at saying maybe we did not do this quite right. maybe we need to change course. they're not going to stand up and say maybe we got it wrong and we have to do something different. i think they should more often be willing to do that. that is not the nature of the beast. be so that's the fed should more willing to say we need to reconsider some things and the things she talked about like in , he talked about the same things janet mentioned tweaking regulatory reform and that is as close as you will get without them being forced to do something different by congress it will be an interesting dance over the next several isths about how far congress willing to go on making changes in dodd-frank versus what the fed is willing to accept and how much they will have to be forced into much they will do on their own. that is going to be a dance we will see play out over a while. we may have a new governor coming in in randy quarles. of al have some what different perspective. it will play out in

agenda the volcker rule was first proposed by and named after former federal reserve chairman paul volcker who served as chair of then president barack obama's economic recovery advisory board from two thousand and nine to two thousand and eleven the rule was meant to prevent banks from making certain types of risky speculative investments that volcker believes contributed to the two thousand and eight financial crisis specifically it disallows banks from making certain investments with their own accounts to increase profits which do not benefit its customers and it limits bank ownership of hedge funds and private equity firms the volcker rule is part of the much larger two thousand and two thousand and ten dogs . financial reform law on which president donald trump has promised to do a big number the five agencies that set the original limits of the volcker rule are reportedly headed back to the drawing board while the rule is meant to make markets safer keeping insured lenders from making big market bets that could go bust critics argue it's made banks too conservative resulting in lost

agenda the volcker rule was first proposed by and named after former federal reserve chairman paul volcker who served as chair of then president barack obama's economic recovery advisory board from two thousand and nine to two thousand and eleven the rule was meant to prevent banks from making certain types of risky speculative investments that volcker believes contributed to the two thousand and eight financial crisis specifically it disallows banks for making certain investments with their own accounts to increase profits which do not benefit its customers and it limits bank ownership of hedge funds and private equity firms the volcker rule is part of the much larger two thousand and two thousand and ten dawn frank financial reform law on which president donald trump has promised to do a big number the five agencies that set the original limits of the volcker rule are reportedly headed back to the drawing board while the rule is meant to make markets safer keeping insured lenders from making big market bets that could go bust critics argue it's made banks too conservative resulting in lo

percent of the thirty year to five six seven eight percent remember in one thousand indy under paul volcker rates got to sixteen seventeen eighteen percent eighteen percent can you imagine that when we first started reporting on this the last financial crisis and here alan greenspan in our last episode we were basically warning about the next crisis coming from the fraud from c.l.i.'s collateralized loan obligations and now he's saying the bond market will collapse remember we did a show for the b.b.c. world at that time and it was this a ten part series and the b.b.c. the head of the b.b.c. paul gibbs who has passed away since then but he was concerned that the financial crisis wouldn't last for ten episodes here we are. one thousand one thousand one hundred eighty episodes and we still have content to talk about notice how much less drama there is in our new sovereign currencies without central banks and that is the crypto currency markets yes there's a lot of drama in there in terms of a few drama queens but there's no like outright fraud of this sort of magnitude that can occupy one tho

united kingdom that involves making tough and often unpopular decisions, almost the equivalent of paul volckerf america. may, is this a government that can make tough decisions? coalesce and make decisions you and others made 30 years ago? is a good questions, because difficult decisions will be made over the deficit, we have still not fully recovered from the financial crisis of 2008, the deficit is too high. i get the impression that the chancellor is focused on that and determined to act on the. you cannot get away from the awkward fact that the main purpose of this government, the main challenges until the next election is going to be actually than negotiation with the e.u. this is so complex and time-consuming it dominates everything out. tom: how do you respond to what is percolating out there of a new trade for the united kingdom, not a return of the empire, but the idea that with brexit the united kingdom could trade globally versus a singular focus on europe. is that a feasible goal? i think so, but it would be slightly naive to increase trade with u.s., canada, new zealand, will some

paul volcker never once commented on federal reserve policy, and i will tell you, i thought that was-- a very much appreciated that. my version of the volcker rule is you don't give advice to the people who come to you >> i don't know if you're going to tell us about your investment f.a.n.g. stocks mr. chairman but i do want to ask you about this notion of the bond bubble. some out there will take a look back at the markets and point to, you know, what you say is a bond bubble. the last bubble that we saw, and say that these were created effectively by the fed injecting massive amounts of liquidity into the system. at this point would you say the fed has the power to ease this bond bubble off the ledge? or do you think it's more likely that the fed will do something that will cause this bond bubble to pop >> those are the types of questions i don't answer, because they are, in effect, commenting on current fed policy ask somebody else. >> i have a very different question one of the things that there's been a lot of speculation about is who should be the next fed chair. i won't ask yo

wasn't ray trained economist >> people forget paul volcker was not an economist >> right >> so would 28% move the needle. >> i would say that's one positive thing is that if it is indeed the case that one side of the aisle is reaching to the other side to get some kind of maybe it's not going to be comprehensive tax reform, but some kind of tax reform, that will be -- that would lead to a real big part of it. something that could actually -- >> so anything >> if we could get 60 votes in the senate, you're going to need the democrats. and it could become more permanent. we see permanent not temporary as a real positive and that, i think -- >> beth we're going to be out of time i want to point out the income number was unchanged but wages and salary go for strong 0.4%. that was june. real quickly we talked about this idea of the second quarter, does it continue in the third quarter? >> you're talking about -- >> gdp groethd >> gdp growth. we're expecting -- we're expecting gdp growth to be in the again kind of in the mid twos we're not expecting any big bump >> that's a good number. if