op-ed,ll street journal janet yellen, ben bernanke, alan greenspan, and paul volcker commented on president trump's recent attacks on the central bank. they say the chair must be able to act independently. president trump has delivered his most forceful condemnation of racism and white supremacy. this following the mass shootings this weekend that killed over 30 people. the president did call for new restrictions on gun ownership -- did not call for new restrictions on gun ownership. that thet recognize internet has provided a dangerous avenue to radicalized, performedminds and demented acts. we must shine light on the dark recesses of the internet and stop mass murders before they start. prime minister boris johnson's opponents are heartening plans to stop a no deal brexit. jeremy corbyn is signaling he will call a vote of no-confidence next month. mp saysbel to worry there is a growing number of hardrvatives against the brexit. china has reiterated its support for carrie lam as the financial hub cleaned up after a day of traffic chaos and more violence. according to the people's daily, ch

life and there was an open letter in the wall street to join the phone from 4 former fed chairman paul volcker he actually was the fed chair under jimmy carter and reagan then old so alan greenspan burned bernanke and janet yellen they don't and they did not directly name us president donald trump but they said overall that it's not a good idea either to really. give react on politics from washington that this actually could worsen the situation so even if they did not name donald trump directly it was quite obvious where this letter was addressed to the posture of u.s. president donald trump has again and again criticized his fed chairman. powell even after he and the federal reserve cut interest rates last week for the 1st time since the financial crisis that still was not good enough for u.s. president on from the fed chairs from the past weighing in on the present and carter there and wall street for us thank you monetary policy of course is just one front in the fight between the 2 countries that chinese companies are no longer buying agricultural products from the united states after a r

jon: -- paul volcker, ben bernanke and alan greenspan, talking about fed independence.hy you wrote that and what you said. >> well, we're concerned that fed independence is under threat, and all of us feel very strongly that in terms of the u.s. economy performing well and the fed being able to play the most constructive possible role in end suring that that -- in insuring that that the, it's very important that the fed be able to make decisions in an independent way that's not color by politics or political pressure. and all of us have had the experience of being able to make decisions in an environment where sometimes one has to make as a fed chair decisions that are the unpopular or difficult in the best interest of the economy. congress has assigned the fed two very important goals; maximum employment and low inflation or price stability. all four of us have done our very best to try to pursue those objectives, and we've been able to do so and gain the confidence of markets in the process by explaining what we're doing but also a making the best decisions we can bas

janet yellen, ben bernanke, alan greenspan, and paul volcker wrote in the washington journal that theindependently and in the best interest of the economy. ofderique carrier, head investment strategy at rbc wealth management is still with us. president trump does not really need to attack powell and demand interest rate cuts if he just plows on with the trade tensions. that seems to be resulting in lower interest rates already -- anyway. thatrique: that is pushing putting some pressure directly -- that is putting some pressure directly. .75% of interest decline between now and -- between last week and the end of the year. matt: so do you expect the fed acknowledge that they are worried about global growth or continue to acknowledge they are worried about global growth and not still just focused on employment and price increases? frederique: so the slowdown in global growth has been acknowledged. we have increases in tensions between china and the u.s.. there is -- the markets see jerome powell as being hawkish. nine press at his conferences he has had, in seven out of nine of them, on

i was thanks to paul volcker who in 1980 you know started to you know stuffed out inflation with a huge surge in interest rates and it's been basically easy street ever since easy money has resulted in many things and we're going to go over that in a moment you and i witnessed some of it into troy where we were last week where you could see former greatness former beautiful buildings abandoned industry abandoned creation of wealth abandoned because.

i was thanks to paul volcker who in 1980 you know started to you know stuff about inflation with a huge surge in interest rates and it's been basically easy street ever since easy money has resulted in many things and we're going to go over that in a moment you and i witnessed some of it in detroit where we were last week where you could see former greatness former beautiful buildings abandoned industry abandoned creation of wealth abandoned because you know you and i can remember our childhood and any you know any person entering the market since then my god it must been horrible back then right but our parents had amazing jobs they got paid well we they were able to own a home and buy a home with one income that they were you know more community. university didn't cost your life you know so here we've had this rolling over of debt over and over all the way down as we talked in the last episode there's been an ever declining utility of debt part of this has been that we need more and more debt in order to grow this fake economy of this economy because remember if you look around there'

peter: what was missed was paul volcker.er was named chair of the fed in august 6 of that very year. the cover date on the magazine was august 13. just as we were writing got, the man who would conquer inflation was taking office. it was the tough recession that wrungically caused that inflation out of the system and set the stage for the stock market recovery. caroline: it is a shame he will not be known for that and forever be tied to the volcker rule. joe: well they are dismantling that. line, in the current environment -- peter: i think you made a good point earlier. in the same way people thought inflation could never be extinguished back then, now they are absolutely conflict -- absolutely convinced deflation is here to stay. and maybe it won't be. caroline: also in this context, a guest at the other day said the bravest thing you could do would be to allow a recession, for central bank somewhere to allow a recession, allow the reset, and the stock market could go off once again. joe: that sounds like andrew mellon, se

i was thanks to paul volcker who in 1980 you know started to you know stuff about inflation with a huge surge in interest rates and it's been basically easy street ever since easy money has resulted in many things and we're going to go over that in a moment you and i witnessed some of it in detroit where we were last week where you could see former greatness former beautiful buildings abandoned industry abandoned creation of wealth abandoned because you know you and i can remember a childhood. any you know any person entering the market since then my god it must been horrible back then right but our parents had amazing jobs they got paid well we they were able to own a home and buy a home with one income that there were you know more community. morse university didn't cost your life you know so here we've had this rolling over debt over and over all the way down as we talked in the last episode there's been an ever declining utility of debt part of this has been that we need more and more debt in order to grow this fake economy this economy because remember if you look around there's no

out of control carter was more interested to rain that in through limiting the money supply and paul volcker at the fed kennedy was much more interested in government spending to mitigate the impacts on the working class those are the two biggest policy differences thank you to the panel. thank you for coming by the books you will learn a lot. read and be skeptical. [applause] you are all part of a cohort of people that fight what people are trying to force on us. thank you. [applause] [inaudible conversations] >> good afternoon with the massachusetts historical society and so happy

banks bought the volcker rule when it was just an idea in the head of paul volcker. they bought it when lawmakers were talking about including it in the dodd frank act. they fought it when regulators were and plummeting it and they fought it ever since it was on the books. trump's election provided an opening. it took a couple years with a couple years with trump as president but they finally got the volcker rule rolled back. david: it is a rollback. it does not take away the basic principle of the volcker act. basically make the bank's drop easier because they can determine whether they are complying or not? jesse: that is how trump's regulators are describing this. this is not a gutting of volker. this is trying to make it clear which trades are banned and which are not. in real-timehat the way they conduct their activity on trading desks was almost impossible to tell -- make those split-second decisions about can i do this for a client or is this going to run afoul of volcker? the point was to go through and cleanse it and make it simpler to comprehend this is an

get over tchlit >> paul volcker has a piece in his own book about the time whe reagan came to him and effectivelye1 pressuredÑihim. it's not that presidents have not pressured fed chairs before, but have they done it so publicly does t("á public nature of it change the dynamic especially when you're trying to inr example or otherwise with other countries? >> since when is the mandated of the fed to discuss politics and trade wars it'sq inflation and employment. all of a sudden 60% of the reason is because of trade wars? >> you don't think the president would like the fed to get in line and help with the trade war? you don't think there's something going on you don't think that's part of the arrangement? you don't think that's what the president wants? i think he's encouraged. he says i want 50 basis points gone off rates he gets results by saying that why stop powell actually acquiesced by saying i did this because of trade wars >> isn't that terrible >> no. it's not terrible. gregg popovich when he gives the nba refs a hard time, should he be thrown out of coaching? that ref should

in 1982, after paul volcker, the chairman of the federal reserve, managed to squeeze inflation out ofhe system through two punishing back-to-back recessions, the conditions were set for the rebound. if you look at the market now, the s&p, if you invested in dividends over that period of time, we have 7000% since that article came out. not bad for a corpse. jason: a story right in the short-term but very wrong in the long term. glad that our readers are keeping us honest and that we are owning up to it. peter coy, thank you. coming up, as that 2020 election approaches, are the polls prepared for hackers? plus, rebirth in baltimore. e-commerce reviving the american city's neglected industrial hub. this is bloomberg businessweek. ♪ ♪ jason: welcome back to bloomberg businessweek. i'm jason kelly. join us for bloomberg businessweek every day on the radio from 2:00 to 5:00 p.m. wall street time. also, catch up on our daily show. listen, subscribe to our podcast. get that at itunes, soundcloud, and bloomberg.com. you can also find us online at businessweek.com and on our mobile app. as the

paul volcker, alan greenspan, they write we are united in the conviction nthat the fed and its chairust be permitted to act independently and free of the short-term political pressures and without the threat of removal and demotion of fed leaders for political reasons. i know we have some investment and investable ideas from you, i want to get to those but also four fed chairs teaming up to go after the trump administration in a hit there what are your thoughts on that op- op-ed? >> this is a big deal. this is enough of the enough of the criticism. think of the former fed chairs that came out and spoke and signed this article. these are the four horsemen. these are the four horsemen of central banks who have come in defense of jerome powell you may not agree with what he did with the recent cut, but he's not lashed back or retaliated to any comments i think all this criticism put forth towards fed powell and an interesting moment in time, i think it's unwarranted therefore he has his back being covered by former chairs the whole article was talking about we don't need to be checked b

janet yellen, ben bernanke, alan greenspan, paul volcker commenting on president trump's latest commente central bank and say the fed and its chairman must be able to act independently and free from the threat of removal or the motion for political reasons. president trump delivering his most forceful condemnation of racism and white supremacy following the mass shootings over the weekend that killed more than 30 people but the president did not call for new restrictions on gun ownership. he blamed the attacks on mental illness and cultural depictions of violence. it has been six weeks since he took his first historic steps into north korea and spoke with kim jong-un and they appear on the verge of collapse with north korea threatening to take what i called a new road in negotiations if washington does not compromise. this was after north korea conducted its fourth short range missile test in two weeks. president trump pressuring nicolas maduro, freezing venezuela's assets in the u.s. and adding immigration restrictions, the move putting venezuela on the same footing as countries such a

hadley, we had four former federal reserve chiefs, ben bernanke, alan greenspan, janet yellen, paul volcker all saying that this pressure on the federal reserve, they're clearly targeting the president without mentioning his name is not constructive. that we have an independent fed for a reason. and they bemoan that. that that is being called into question. what did you think of that? >> well, certainly everything that is going on with the fed and everything going on with trade policy, these are headwinds that we're seeing reflected in the market but i will say from a 30,000-foot view the white house the president trump and his administration along with congress via the tax-cut package, they have been pursuing a domestic economic policy that put us in a strong position as americans. the bureau of economic analysis last week releasing wage data, updates to wage data, personal savings have increased, business investment is going in the right direction. this is encouraging. it sort of suggests now is the time for us to as a country to be facing some of these hard things, whether renegotiating

my feeling we don't have intellect over there the caliber an consequence of say, paul volcker or alanreenspan to see how the economy is changing and how the tools must evolve. for example, helicopter money may make a lot of sense right now. charles: i'm glad you said that. we have less than a minute, you said some profound things, real quick, i shared the idea of having non-economist run the fed. this could possibly be the a person who understands main street more than someone who is just always looking, crunching data. was that a mistake, a mistake to get a non-economist jay powell in this job? >> it was a mistake. however to get a good economist to do the job you have to look outside the realm of macro economists. they really believe the entire economy can be reduced down to four or five equations, to make profound statements about expectations and so forth. in reality they really have very poor models that have very poor predictive quality. we need to start to get someone who says, how is the world changing, what do we do about it? for example, why is the fed so afraid of giving or

we are now seeing this op-ed released by former fed chairs paul volcker, alan greenspan, and others.e talking about the need for this independence. they are saying they are united in the conviction that the fed and his chairman be permitted to act independently and in the best interest of the economy, free of short-term political pressures and without the threat of removal. we continue to see more pressure coming from president trump for the fed to continue to ease policy. we are seeing this head on the wall street journal. now, we continue to talk also about the trade headlines and the ongoing tensions. goldman sachs has factored in the trade war. the question is, how do you strategize around the next potential escalation? joining us on the line from atlanta is goldman sachs global head of an and emerging-market -- fx and emerging-market strategy. we continue to see this traditional safe haven for japanese yen. is that where we should be going? >> absolutely. thank you for having me on. i think the ongoing trade conflict is very positive for the yen. it remains one of the few underv

of the narrative and sad to see this happen but not the first time it happened go back prior to paul volcker why he was so unique is changing the narrative because the narrative at the time was not working we created inflation, a stag inflation environment and no one anticipated to develop and the net result is to change the narrative and he did it by targeting money supply as the federal reserve focused on controlling money this fed has to do the same thing. but in reverse they have to focus on inflation. we need a higher rate of inflation in this economy, beyond 2%, possibly 3% we need inflation accusation in case there's a downturn and we don't have that today. and therefore, this fed has to start far getting money supply and targeting stronger money supply growth and inflation and allowing the fed funds rate to drop. >> there seems to be waning confidence that central banks engineer inflation >> we are unique to certain extent because japan failed in this because japan didn't correct the banking system for years. europe hasn't corrected the banking system even today. we have solved our b

maria: last week you along with fellow former fed chairman paul volcker ben bernanke janet yellen wroteences that certainly applies to the federal reserve as well as to other government agencies, when the current chairs four-year term ends the president will have the opportunity to reappoint him or choose someone new, that nomination will have to be ratified by senate we hope that when that decision is made, the choice will be based on the prospective nominee positives col tens both not political allegiance or activism dr. tell be more about that why you want to write this op-ed. >> well, i think concerned about political forces will drive -- inordinary informant loo drive choices of who become members of the federal reserve board, irrespective of their qualifications. and i think that whole article rests on the notion knowledge and ability is what determines who is a good federal reserve governor. politics does not or should not enter into the whole question. maria: i totally understand that i think everybody would like to see and make sure we have an independent federal reserve. like

i mean there is an op-ed today defending the federal reserve, by former fed chairman paul volcker alands an independent fed right perception monetary policy decisions are politically motivated osh influenced by threats the policy makers wouldn't be able to serve out terms of office can undermine public confidence central bank is acting in best interests of the economy can lead to unstable financial markets worst economic outcomes, your wreaks to this, and do you think this is what this is about? >> is to i don't think this what is this is about, i think that they have a point all four in stressing, the importance of political independence of a central bank, you need operational autonomy, the political system should set the targets of what the central bank should do but then leave the implementation to the central bank but this is not about political pressure. this is about market pressure. markets have not only been conditioned to expect ample predictable central bank support they feel entitled to it that increasingly has put central banks in a corner, and the only way they can get out

it happened through fdr, lbj, through nixon, ronald reagan until paul volcker, that basically stoppedthe federal reserve is not some aye historical thing like a sewing machine. it is individuals that make statements. he should come out and apologize. that what critics are saying. stuart: the fed should lower the rates. they have to do it. who case what effect on election. >> it is shocking. stuart: if you want more of this, i'm sure you do, remember tune into "the evening edit" 6:00 tonight with liz on the fox business network. liz, thank you very much. great to see you back. >> thank you. stuart: now this, new "qunnipiac poll" out this morning, it shows, how about this? all four democrat front-runners beating president trump in head-to-head matchup. look at that. by wide margin too. go pac chairman david avella. whether you like it or not you have a problem with that poll. what do you say. >> if barack obama could get reelected when americans had a 25% view that the economy was excellent in august of 2011, president trump is on his way to an electoral landslide. 61% out of that same

paul: a revamped volcker rule on wall ruled out street. prohibited and layout limits for banks to follow. the rule changes are being seen as less of a shakeup than expected. during that time, bank trading has been radically reshaped by advancements in technology. shery: youtube finalizing plans to and targeted ads on videos likely to attract kids. the ftc reached a settlement, but it is unclear if this move is a result of the deal. youtube maintains its primary site is not for children, saying young people should use the youtube kids app, which doesn't use targeted ads. has picked aramco two people to advise on its second attempt at ipo. the boutique investment banks selection ofitial underwriters for the listing. rd was not part of the first ipo attempts, but it is in pole position to secure a role on the ipo. the dispute between disney and sony is threatening to end their coproduction of the spiderman films, throwing the future of a beloved character in the air. dave has the story in tokyo. what is happening? what is at stake for sony an