right well do put this into historical perspective as you mentioned back in nineteen eighteen paul volcker was a hawk any raise interest rates up at one point at a time and we got up to the mid teens on the interest rates and but as you point out if in fact we start off at a twenty five percent fed funds rate and that rate goes to one percent or two percent that's a four to eight hundred percent rise which actually on a percentage basis would be greater than the rises under paul volcker and this would cover a much bigger pool of debt so the question therefore is. the if in fact inflation genie is out of the bottle and the i.s.i. manufacturing days just had a thirteen year high of sixty point eight percent in february it indicates that inflation is roaring back the fed has always told us that they can. take those toxic assets off their balance sheets and return them to the marketplace without causing all kinds of market may have is that possible wolf. i think it's important to realize what the fed is trying to do and the fed is trying to tighten up financial conditions which means raising y

hundred percent rise which actually on a percentage basis would be greater than the rises under paul volcker and this would cover a much bigger pool of debt so the question therefore is. did it if in fact inflation genie is out of the bottle and the i.s.i. manufacturing gauge has had a thirteen year high of sixty point eight percent in february it indicates that inflation is roaring back the fed has always told us that they can take those toxic assets off their balance sheets and return them to the marketplace without causing all kinds of market may have is that possible wolf. i think it's important to realize what the fed is trying to do and the fed is trying to tighten up financial conditions which means raising year olds which means by definition falling bond prices so the fed has also talked about the elevated valuations in the stock market certain fed governors have talked about price bubbles in commercial real estate which is back before trillion dollars in debt that are sitting on the banks hold and that. commercial mortgage backed securities are or are backed by and so you have vario

all right well to put this into historical perspective as you mentioned back in nineteen eighty paul volcker was a hawk and he raised interest rates up at one point at a time and we got up to the mid teens on the interest rates and but as you point out if in fact we start off at a twenty five percent fed funds rate and that rate goes to one percent or two percent that's a four to eight hundred percent rise which actually on a percentage basis would be greater than the rises under paul volcker and this would cover a much bigger pool of debt so the question therefore is. if in fact inflation genie is out of the bottle and the i.s.i. manufacturing days just had a thirteen year high of sixty point eight percent in february it indicates that inflation is roaring back the fed has always told us that they can. take those toxic assets off their balance sheets and return them to the marketplace without causing all kinds of market may have is that possible wall. i think it's important to realize what the fed is trying to do and the fed is trying to tighten up financial conditions which means raising y

hundred percent rise which actually on a percentage basis would be greater than the rises under paul volcker and this would cover a much bigger pool of debt so the question therefore is. if in fact inflation genie is out of the bottle and the i.s.i. manufacturing days just had a thirteen year high of sixty point eight percent in february it indicates that inflation is roaring back the fed has always told us that they can. take those toxic assets off their balance sheets and return them to the marketplace without causing all kinds of market may have is that possible wall. i think it's important to realize what the fed is trying to do and the fed is trying to tighten up financial conditions which means raising year olds which means by definition falling bond prices so the fed has also talked about the elevated valuations in the stock market certain fed governors have talked about price bubbles in commercial real estate which is back before trillion dollars in debt that are sitting on the banks hold and that. commercial mortgage backed securities are or are backed by and so you have various fed

we've just seen -- there is no question from the cbo score to what these former regulators like paul volcker and tom hoenig, some of the republicans, volcker and others have said this is going to put more risk. that's why i ask people to come to sherrod brown.com and sign a petition saying no bailouts. don't do this bailout. because this is going to make it more likely that the banks will have to be build a out some time. >> all right, senator sherrod brown, thanks for joining me. >> thanks, chris. glad to. >>> still ahead, a pretty incredible story from "the new york times." a belo russian escort says she has hours of recordings that could expose russia's interference in the elections. and a big anniversary for president trump this weekend. that's thing 1, thing 2 next. new olay whips powerful skincare, now light-as-air a breakthrough moisturizer whipped for instant absorption feel a light-as-air finish in a flash new olay whips ageless but i'm not standing still... and with godaddy, i've made my ideas real. ♪ ♪ i made my own way, now it's time to make yours. ♪ ♪ everything is working, work

we've just seen -- there is no question from the cbo score to what these former regulators like paul volcker tom hoenig, some of the republicans, volcker and others have said this is going to put more risk. that's why i ask people to come to sherrod brown.com and sign a petition saying no bailouts. don't do this bailout. because this is going to make it more likely that the banks will have to be build a out some time. >> all right, senator sherrod brown, thanks for joining me. >> thanks, chris. glad to. >>> still ahead, a pretty incredible story from "the new york times." a belo russian escort says she has hours of recordings that could expose russia's interference in the elections. and a big anniversary for president trump this weekend. that's thing 1, thing 2 next. ♪ you know how painful heartburn can be. for fast-acting, long-lasting relief, try doctor recommended gaviscon. it quickly neutralizes stomach acid and helps keep acid down for hours. relieve heartburn with fast- acting, long-lasting gaviscon. and helps keep acid down for hours. want us to do about what woulthis president?father

paul volcker, former chairman of the fed, is worried this bill deregulates the u.s. operations of foreign banks, as i'm worried. sara bloom raskin, deputy treasury secretary said this bill removes necessary guardrails that were installed to reduce the chances of foreign megabanks drawing on u.s. bailout funds. mr. president, i don't think yo, mr. president, the junior senator from oklahoma, serve with integrity and honesty. i don't think any of my colleagues on this side of the aisle or anybody else, i don't think any of us wants to face the voters if five years from now, ten years from now what we voted on today and this week results in our bailing out foreign banks. americans were angry that we bailed out the big u.s. megabanks. imagine the anger aimed if the story is more focused more precisely that we bailed out foreign banks, which we actually did, but the story was more about wall street. imagine if that's the story. former treasury officials michael barr and antonio weiss are worried this bill is rolling back rules that protect the u.s. economy from foreign ba

i think the best answer to that question is it given by paul volcker brought in by former secretary-general kofi annan looking at oil for food program and did an extensive report on the corruption and mismanagement that he and his commission saw in the oil for food program. at a senate hearing in 2005, snort norm coleman of minnesota asked volcker, do you think there's a culture of corruption at the u.n. no, i don't think there's a culture of corruption awn though there's corruption. i think there's a culture of inaction, and that's a very, very astute observation. when you come to the question of corruption and you look at the what the u.n. has done to expose it and prevents it in the future, the answer is very, very depressingly little. >> host: how many people do you have working when you're there for the u.s. delegation? >> well, number varies at different time. when the general assembly convenes when they come to new york, 150, 160 at the u.s. mission more or less on a full-time basis including a little known fact a total of five american ambassadors. >> host: how about what they're pa

we had this amazing off the inflation by paul volcker. greenspan came in. had very generous monetary policy. you and i both agreed it was too generous but the tax cuts clearly stimulated growth in the economy, no? >> let me finish my thought. my thought was because of that roiled inflation volcker had to drive the prime rate to 20 1/2% by fall of 1981. it sent the economy into the dumpers. david: right. >> the worst recession we had since world war ii. david: agreed. >> then finally when he broke the back ever inflation, he took his foot off the brake. the prime rate got all way down to 7%, by '85, '86. that was a natural stimulant that helped the economy rebound from a bad -- david: you know how tv is. we have got to wrap. we don't have much time. final word, a little bit of growth had to do with tax cuts in the 1980s, not the ma "of it? >> i agree with that. david: i'm asking you, you think it is true. >> the growth of the 1980s was about average for the last three decades. david: all right, david stockman, always a pleasure even though we disagree profou

intohances of it turning something like the 1970's where we saw paul volcker type inflation, we are notoing there. the trade war started, did it start some time ago, is it going to start today? we will see the u.s. slapping tariffs on aluminum and steel. the chinese are responding saying the u.s. is going to far. if it has started, is it priced in or should it be priced in today? not priced deftly in. we should be worried about it and we should be watching china's reaction closely. -- the things we are watching is the price of the yuan. they could weaken the yuan quickly and that could a bad for everybody. we know what happens when the yuan tumbles quickly. it is no good for any asset class. we will be watching that closely. ever.reat stuff as you can follow mark and the rest of the team. it is less than three weeks until russia goes to the polls. we will look at today's key address by vladimir putin. that is next. this is bloomberg. ♪ matt: welcome back to bloomberg markets, the european open. let's get the bloomberg business flash with 16 minutes to go to the start of trading. we go t

here are the words from former federal reserve chairman paul volcker who i got to know when he was in the house of representatives. he was on the federal reserve and i was in the banking committee. here is what he said. these are his words of february 21 of this year. he said, i'm pleased that the senate banking committee has forged ahead with meaningful bipartisan financial reform to ease the unnecessary regulatory strain on small banks, helping them to flourish as an engine of economic prosperity. he doesn't agree with every single word of the legislation before us, but he concluded by saying, i thank you for the opportunity to comment on this important piece -- this is a letter to senator brown, i believe -- i thank you for the opportunity to comment on this important piece of legislation and look forward to its swift passage. let me read that again. did i read that right? i thank you again in a letter to senator brown. i thank you for the opportunity to comment on this important piece of legislation and look forward to its swift passage. that doesn't mean he agreed with every sing

testified, sitting where you are right now in january, he believed the bill would accomplish the bill paul volcker said it does sarah bloom raskin said there will be less regulation of the foreign banks. antonio weiss said the same. i had an amendment during the markup on that issue and it was defeated foreign banks lobbied against that amendment the bill's supporters rejected it i have three very related questions, i'll ask the three consecutively, if you can answer them now or in writing, will you promise to push back against secretary mnuchin and foreign bank lobbyists to ensure that no foreign bank will benefit from any reregulation, i would like -- any deregulation, i would like that promise from you. i would like to know what the fed will do with u.s.-based banks that fall in that category and the final question, wouldn't it be better to amend this bill to avoid litigation, to make sure it doesn't benefit large foreign banks? you can respond now or in writing. >> why don't we take those under advisement and give you a clear response in writing. >> thank you >> thank you that concludes the qu

for us on a feel for the saying the tragic loss of her sister means that paul volcker that she wants to help others stay safe. and out of the news a swiss voters have overwhelmingly rejected a plan to abolish broadcast license fees while the final count shows more than seventy one percent voting no in sunday's referendum that means voters want to keep a mandatory fee for programing the price tags were out four hundred euros per household and relates and that's in order to support public broadcasting. a sigh of relief that this was a public service broadcaster. the station produces content for switzerland's minority romance language because a vote against the license fee would have spelt the end. of being the we unite the roman speaking world including those people who don't live in roman speaking areas in switzerland and abroad where an important market mark club's supporters of public service broadcasting see sunday's vote as a clear signal in favor of independent journalism and the opponents these activists sparked a debate they say swiss public service broadcasting is no longer re

i and my friend, paul volcker, think the fed ought to target 0% inflation. that is not a bad thing. 2% apparently does not fool us, even though it cuts the value of our money in half in about 35 years or so. did i hear that was the last question? [applause] thank you. >> like it just have you stand to the side for second. . >> >> there are many authors and speakers. one of the things that the alexander hamilton awareness society wants to indicate his -- is who are those you can have a great scholarly -- that you can have faith and trust in. so we have a special award we would like to give to you. for your dedication to representing the accuracy of alexander hamilton's record to national and international organizations, to university students, and to the public. the purpose of this museum. the museum of american finance. as a mentor, you have been very patient with many people and very kind with your advice. very hamiltonion. so i just want to thank you. i want to read the award. "richard sylla is hereby recognized as a national hamilton scholar for exemplary

paul volcker, the former chairman of the federal reserve, wrote that country-wide, national city and gmac were all below $250 billion and required -- this is a quote -- required billions of dollars in official capital assistance and debt guarantees either for themselves or their inquiring institutions. end quote. and here's what phil angelitis, who served as chairman of the financial crisis inquiry commission, said about this particular provision, and i quote, the bill's provisions to list the asset threshold for enhanced prudential standards and supervision from $50 billion to $250 billion would substantially reduce oversight over 25 of the 38 largest banks, including institutions over $100 billion in assets that were deemed too big to fail in 2009. a number of financial institutions with less than $250 billion apparently triggered the need for bailout assistance during the crisis, and history has shown time and time again that the failure of financial firms that are not among the largest megabanks can pose systemic threats to financial stability. in addition to weakening these requ

paul volcker, former chair of the federal reserve, he has cautioned us about this bill. he was a fed chair for a democrat and a republican president. sheila baer who helped us put protections in place after the crisis, she is a republican, warning us about this bill. tom honnig, current vice chair at the fdic, selected for that passion by republicans has told us this is possible. barney frank has said he would vote no if he was here. former governor of the federal reserve dan turillo, he has outlined a number of concerns. law professors, fair housing advocates, big bank experts, people who provide legal services across this country who deal with foreclosures, and civil rights groups are telling us we can't go down that path again. we know what happens next. it's hieb rust to think we -- hubris to think we can gut the rules in these banks again but avoid the next crisis. if you strip the rules away from the big banks and you turn your back as regulators on misfeasance and malfeasance, that collective amnesia, we're going to pay for it, and we know we are. there are so man

former fed chair volcker, by former fed governor and deputy treasury secretary, by bush appointee, former fdic chair sheila baer, and by the former deputy governor of the bank of england, paulit's important to note that it's not all candy and roses here let me talk about a couple other things unemployment rate has been steady at 4.1% wage growth has been slower to improve. at your confirmation hearing in november, you mentioned labor force participation for prime age workers was also lagging i'd like to see improvement across the board, as i know you would. two questions related to that. do you think it's possible to achieve further improvement in wages and employment in workers that have been left behind without causing higher inflation? and will you commit to look at all the data and considering the workers who have struggled the most so has to avoid raising rates pre-emptively and cutting off the chances for broader economic gains >> thank you, senator. so as you mentioned, there are a couple places where it looks like there may be additional slack in the labor force the biggest of those is prime age participation by prime age workers, a full percentage point where it w

we know that from other former regulators, paul volcker, and we know that from sarah raskin, we know that from other professors and regulators, i know another nominee for president bush, she is concerned about the bill. we know that. if we want to fix the foreign bank issue, let's adopt -- not just adopt my amendment, let's fix it. no favors for the biggest deplorable banks in the united states. don't give the regulators the option. we know who the regulators for the banks are. we know the regulators for the banks distribution every -- most of them used to work on wall street. you go -- you go to the white house and the white house looks like a retreat for wall street executives. so we want to write strong laws, clear laws, we don't need to place blind trust in the people who have failed us before. quarrels, mick mulvaney, mnuchin, we expect these people who have been wrong in their public pronouncements to be right in their public actions. we are trusting these people who have profited, i can him that the names, we are trusting these people who now have public service jobs, we are t

experts like paul volcker, head of the federal reserve, sheila bair, head of fdic, republican appointment by president bush, used to be chief of staff for senator bob dole. dan turillo, read of regulation for the federal reserve wants us to vote no. sarah bloom raskin at the federal reserve and secretary of treasury. tom honig, a republican who said fdic, earlier was a fed president. antonio weiss at the treasury department. paul tucker, international regulator. phil angelides, former california state treasurer who ran the commission that examined what happened in the bank crisis, all wrote to the senate, all outlined a combined 28 pages worth of concerns about this bill, and my colleagues just say oh, this is just helping the small community banks and some of the regional banks a little bit. well, not exactly. that's what happens here. we start off wanting to help the small banks. we start off helping some of the mid-sized regional banks that generally do a good job, banks like runnington and fifth third and key bank, but then wall street gets involved and wall street drives a bigger and

finally, i have filed an amendment supported by former federal reserve chairman paul volcker to retain and strengthen the five's emergency safety and soundness powers. to quote chairman volcker, it's clear that circumstances can arise where the activities of some banks with less than $250 billion in assets would pose a grave threat to financial stability. to regress such a threat, regulators have certain tools in their arsenal that we wish they will never have to use. senator reed's amendment wisely restores and strengthens one such tool, allowing it to be deployed under limited circumstances and only upon approval of a supermajority of the financial stability oversight council. surely we should at the very least agree to preserve and strengthen the ability of our financial regulators to avoid grave threats and another financial crisis. before i conclude, i'd like to make one further observation. ten years ago today, few of us knew ahead of time that we would see an economy that would collapse into debts that we did not anticipate. our nation would literally recoil due to the recklessn