powell: yes. senator: part of the concern i have, i have heard -- what you will be doing to address consumer protection issues, in particularly protecting the workers in the workforce. >> consumer protection, we have not really talked much about. we have been assigned an important role in consumer protection which we take seriously. chair as ited as have been as governor, with responsibility for our budgets, that consumer protection would have the resources it needs to do its job. we will try to do what ever congress assigns us well and aggressively. senator: i appreciate that. i will submit the rest of my questions for the record. i would like many of my colleagues -- i, like many of my colleagues have concerns. horrific, we had a crisis, and the deregulation of dodd frank and many of the regulations put in place to protect individual consumers are very important, and i am concerned about rolling back any regulations which will open the door and less than any consumer protection. especially with

powell on your nomination. you know, both the immediate predecessors of the fed, chairman yellen and bernanke testified before congressional committees about their concern and impact of the rising debt. national debt on the economy. here's what chairman bernanke told the committee in june of 2001. he said, large deficits in debt over a long period of time raise interest rates above levels where they normally would be and crowd out private investment and are bad for growth and productivity. they also may involve borrowing from foreign lenders which is also a drain on current income. unquote. do you agree with chairman bernanke statement? >> yes, i do. >> and here is what chairman yellen said this year on july 12th before the house committee on financial services expressing her concerns about rising debt. she said current spending and taxation decisions will lead to unsustainable debt situation with rising interest rates and declining investment in the united states that will further harm productivity growth and

tell us about the colin powell school. left the state department, i came up here to see a little center, the colin powell center, that had been endowed by the rudin family. i wanted to see what they were doing. the answer was they had not been doing much. it was more of a mini think tank. i sat in the conference room here at ccny, and about a dozen students came in, and i saw incredible diversity among these 12 kids, and i saw passion in their eyes. i saw them hungry for a better life. i knew that most of them came from families where nobody had yet graduated from college. this is the first generation of that family. when it got back to me, i said, my god, this is me. this is me 50 years ago. i have got to be a part of this. david: i know you are very proud of the school, as you should be. as you look back on your life in public service, did your parents live to see your success? colin: they both saw me make colonel. they were very proud of that. my father was failing. i could see that. he did not see me make general, but

jonathan: i want to get to what we will probably call next year the powell-draghi spread.t is two-year bunds versus two-year treasuries. earlier this week it was approaching 260 basis points. i keep asking the same thing over and over again, and then we go higher. how much oxygen is left up here? can we go much wider than where we are already at? 250-something on two-year bunds versus treasuries? colin: i think we can. richard: i do, too. colin: we have a lot of things going on. i will bring up a chart if i can really quick. it is the world bond markets. if you take a look at it, you mentioned two years. i have two years here. this is just in the data range on the right-hand side over the last three months. if you take a look, certainly for this one, everything is virtually near the low for the three-month period. as you mentioned also in the u.s., where we are seeing pressure of the yield curve coming from the two-year side of the equation, in the u.s. that level is 181, at the high of the three months. i think that will continue. i think unless there is a change to the g

baseline two-year will continue to go up, not excessively but gradually under powell.eanwhile, the front end in eurozone is basically pegged out to at least midpoint of 2019. where it gets interesting is you will have a transition. draghi's term is up in november of 2019. it cannot be extended as in the u.s. we cannot have him forever. there will be a post-draghi ecb. at that point, if the european economy is humming, the markets will start to romance a higher rate path in the eurozone. i think that is a 2019 story. for 2018, this chart can even be wider. jonathan: everyone is sticking with me. oksana aronov, richard clarida and colin robertson. coming up, the auction block and potentially a record month for municipal bond issuance. and they are outperforming. that is next. this is "bloomberg real yield." ♪ ♪ jonathan: from new york city, i am jonathan ferro. this is "bloomberg real yield." i want to head to the auction block. the tax discussion in washington continues to reshape the money market. municipalities are rushing to send tens of billions of dollars of securi

adam clayton powell jr. adam clayton powell jr. will inherit the church and this is a very interesting thing, churches and religion become -- nntd a number of religion become the family business so if i'm the son or daughter of a rabbi, i might become a rabbi, if i'm the son or daughter of a baptist minister, i might become a baptist minister, and i will learn even if i don't become that, i will learn politics at the foot of my father or grand father or whoever it was. adam clayton powell was this sort of social gospel. he had all kinds -- like father divine, running roughly contemporary, he has all kinds of social operations coming out of abyssinian baptist church, to serve the needs of people who are in desperate, who are looking for jobs, who are desperate, looking for a job, looking for the good life. but preachers have to service their congregation in ways at all kinds of levels. not just an abstract spirituality, but at the level of jobs. the church functions as a social service unit. this is his son.

david: you invented something known as the powell doctrine. colin: not quite.nted by a washington post reporter who came to see me one day and said, i am writing an article about the powell doctrine. i said, great, what is it? he said what we did when we invaded panama and took out manuel noriega, one, make sure you go to war after all diplomatic possibilities have been dealt with, and there has to be a clear political objective, not just military objective. and the second part of the powell doctrine is i used overwhelming force once, but i always said decisive force so you don't have to have too many people, just enough to have a divisive outcome. david: you get the order from the president to kick saddam hussein and his troops out. colin: when that decision came down that they could not find a diplomatic solution, i received the order and gave the order to norm and we were ready. david: there was a famous military maneuver, you went around, whose brilliant idea was that? colin: any infantry captain could have figured this out. it did not take a general. sever

even powell in his hearing signaled his desire to do that. it is fully priced in.e janet yellen's presumably last press conference. we will get a new edition of the dots. in terms of the ecb and the bank of england, draghi laid out the game plan at a prior meeting. i think it will be little news in this meeting. the bank of england, no decision but we will see if there is any dissent. jonathan: do you just assume the news conference after the next news conference is the same but with jay powell there instead of janet yellen? oksana: i think because everyone assumes that is going to be the case that powell will be a continuation of yellen. i think it could happen very quickly, or she will step down as soon as he is approved. very likely he will be at the january meeting. he may be viewed as a dove and a continuation of yellen, but he is very outspoken on deregulation. that can have some ramifications for the market that are not necessarily being priced in right now. jonathan: colin, yellen 2.0 or different this time? colin: i think it is 2.0. i think that clearly so

adam clayton powell sr. was a traditional pastor. harlem had several large churches, all kinds of different churches. saint philip's episcopal, abyssinian, and the list could go on. a sizable roman catholic church. all-black in this neighborhood. but abyssinian had a storied history because it will become the storied history of his son, adam clayton powell jr. he will inherit the church. this is a very interesting thing. churches and religion become the family business. so if i am the son or daughter of a rabbi, i might become a rabbi. if i am the son or daughter of a baptist minister, i might become a baptist minister. and i will learn, even if i don't become them, i will learn politics at the foot of my father or grandfather or whoever it was. adam clayton powell was this sort of social gospel. like father divine, they were roughly contemporary -- he has all kinds of social operations coming out of abyssinian baptist church to serve the needs of people who are desperate, looking for jobs, looking for the good life. black preachers

that powell will be a continuation of yellen.t it happened very quickly, or she will step down as soon as he is approved. very likely he will be at the january meeting. he may be viewed as a dove and a continuation of yellen, but he is very outspoken on deregulation. second have some ramifications for the market that are not necessarily being priced in right now. jonathan: yellen 2.0 for different this time? colin: i think it is 2.0. some decisions could be different. the fact powell came in and was very similar in conversation with respect to how yellen spoke to the markets, no change or shift with the expectation that has been sent out that they would like to raise rates three times next year, i think that is basically how the first quarter will look. i think the real issue for me and where we can have something with respect to the market that could change the course of the fed, as we talked about yields today, that the 10-year rate continues to contract, powell will have a real issue staying to the markets if they want to rais

call, hello, general powell? this is ronald reagan. >> would you fix your tie, please? david: well, people wouldn't recognize me if my tie was fixed, but ok. just leave it this way. alright. ♪ david: i don't consider myself a journalist. and nobody else would consider myself a journalist. i began to take on the life of being an interviewer even though i have a day job running a private equity firm. how do you define leadership? what is it that makes somebody tick? ♪ david: we are here today at city college, a place you graduated from a number of years ago. colin: thank you, david. david: why did you pick city college? colin: i was accepted at ccny. i was accepted at nyu. the reason i went to ccny because nyu was charging $750 a month, or year. i couldn't handle that. my family could not handle that. i went to city college because it was easy to get to, and i had heard a lot about it. david: you grew up in the bronx? colin: i was born in harlem, about a mile from here, and i grew up in the south bronx. the hunch point section. david: your parents were immigrants from jam

adam clayton powell jr. adam clayton powell jr. will inherit the church.his is a very interesting thing. churches and religion become -- in a number of religions become the family business. so if i'm the son or daughter of a rabbi, i might become a rabbi. if i'm the son or daughter of a baptist minister, i might become a baptist minister. and i will learn, even if i don't become that, i will learn politics at the foot of my father or grandfather or whoever it was. adam clayton powell was this sort of social gospel. he had all kinds of -- like father divine, running roughly contemporary, he has all kinds of social operations coming out of abisidian church looking for people who are desperate for the good life. but people have to service their congregation in ways at all kinds of levels. the church functions as a social service unit. this is his son. adam clayton powell jr. playboy, baptist minister, married to jazz and the stage actresses and in 19 41, he was elected on the democratic ticket as new york city's first black city council member. after serving

colin powell stands before the u.n. to deliver a scathing indictment of saddam hussein he repeats the accusations already presented during debates before congress he stresses the existence of mobile laboratories for producing biological weapons these are the revelations made by curveball the iraqi defector who spoke to german intelligence. finally he accuses saddam of wanting to get his hands on an atomic bomb he speaks of the r.u. minium tubes that for months have been presented as a refutable proof. we watched colin powell and we said whoa this is really theatrical well done and we gave him an a for presentation and a c. minus for content which would. be. just on the ski or more policeman the vile that. general powell put in nations with the head of the cia behind him was acquired from a man which the named curveball. curveball whose real name was rough feed comment was a knobby would later admit that he made it all up so he could stay in germany. richard powell who had superficially defended the idea of going to war

i wonder if you have advice for incoming chair powell. yellen: well, my colleague, i have had the pleasure of working with him now for many years, and he is somebody who understands the federal reserve very well and shares its values. as i mentioned in my opening statement, he is committed to the mission of the fed to its independence and to acting in a nonpartisan, nonpolitical way. he is somebody who has participated in the fomc now for many years. to the best of my knowledge, he has been part of the consensus -- i do not believe he has ever dissented. i think there is strong consensus in the committee for the gradual approach that we have been pursuing, and governor powell has been part of that consensus. so i feel he is very well-positioned and very knowledgeable of all the ins and outs of everything the fed does --supervision in the payment everything the fed does. in supervision and the payment system, he has played an active role there. >> i am with american banker. a related question to what nancy was asking -- there have been som

general powell put. nations with the head of the cia behind him was acquired from a man which they named curveball. curveball whose real name was rough feed comment was a knobby would later admit that he made it all up so he could state germany. richard powell who had superficially defended the idea of going to war has no problem admitting that many of powers allegations were unfounded the mobile laboratories that were described in that intelligence report that turned out to be completely false there were no mobile laboratories the aluminum tubes which could have been part of centrifuges. turned out to be aluminum tubes for launching small small rockets colin powell now is lying yeah he did. why he do it because the president told him as though it taking their case to the un the american seek to justify their actions in front of the international community weapons inspectors return to iraq but have yet to find w m d's but washington applies an indisputable logic. hussein indicates that he has weapons of

number one, powell is more focused on markets and will listen to markets. think if you continue to see an equity market that continues to run the way it is run, i think he will do it as a signal of overheating. i think on the margin come he may be hawkish in that regard. the second is regulation. chair yellen was focused on conservative approach toward the banking system and the regulation in the obama administration was constraining for a lot of banks. i think powell will be more practical and that will potentially lead to more lending. eric: diana, those things that might put on the table, is that enough to stop us out of what we are currently seeing? >> i don't think it will be a significant destabilizing for markets. ultimately we have an environment where groups are well anchored, there's a lot more certainty. for long-term investors, it is a good situation. we know the fed will gradually hiking rates and powell is sending the same message. for smaller banks, he has approached regulations saying this is an opportunity for a more tailored approach. he i

number one, powell is more focused on markets. think that if you continue to see equity market and continue to run, powell will do that as a -- will see that as a signal of overheating. the second thing is in regards of regulation. chair yellen was focused on reports towards the banking system and overall regulation under the obama administration was constraining for banks. i think powell will be a little bit more practical and that will potentially lead to more lending on the bank side. jonathan: the kind of things that mike put on the table, is that enough to take us out of regime we see? diana: i don't think it will be as significant a stabilizer for markets. we have a -- environment where there is policy uncertainty. for long-term investors, that is a good situation. we know that the fed will be gradually hiking rates and powell has the same message. for smaller banks, his approach to regulation seems to be more tailored. incomeinvestors in fixed and credit, i think this is a very positive outcome. jonathan: for the treasury m

that is the uncertainty that will hang overjerome powell when he takes over the chair.wn in february. her legacy? in many ways, she has already made history as the first woman to be the chair but apart from that, and economic legacy. if you just go buy a survey done with the wall streetjournal were they asked economists how they would rate hurt more than 60% rated her, they gave ita more than 60% rated her, they gave it a great which means she has done a good job. certainly the economy, strong economic growth. unemployment ata strong economic growth. unemployment at a 17— yellow. but there have been problem areas. below the 2% target that the federal reserve sets. hong kong's de facto central bank has raised interest rates. the monetary authority raised points to 1.75%. hong kong tracks us rate moves because its currency is pegged to the us dollar. the us communications regulator is expected to vote to overturn net neutrality. if this is overturned it might mean internet service providers could charge companies more for their content to be accessed at better speeds crea

with senate confirmation hearings for fed chair powell, many jerome powell and outgoing chair janet yellenll be her last testimony to congress on the economy. on thursday, michael mckee discussed the future of the fed in an exclusive conversation with federal reserve bank of cleveland president loretta mester. michael: obviously, the news for the fed, jay powell. according to him, "i think the case are raising rates at the next meeting is coming together." do you agree? ms. mester: i do agree with that. i have been on that case for a while that we really need to be moving interest rates up gradually given where the economy is. growth is at a sustainable pace. labor markets continue to improve. inflation is below target, no doubt, but it is on a path to moving up gradually at 2%. we have been at interest rates that are very low for quite a while. it just makes sense to start bringing it up gradually. of course, we respond to data as it comes in, and as the outlook changes, we would change off of that. but the strategy of moving interest rates up, relative to where economy is or where it has

her name is dina powell. before her appointment to the white house, she was working at goldman sachs. gary cohen was previously the president of goldman sachs, so when she came on board, it was thought that maybe she would be in gary cohen's orbit. she was named the deputy seek security advisor for strategy demand that role, a lot of normal republicans or even like never-trump republicans, they put faith in her thinking she might be a potentially moderating influence in the administration more broadly but in the national security council specifically. and the national security counsel and policy making in this administration is of particular concern. remember the national security counsel initially was set up by mike flynn and we all know how well that worked out. and remember, after flynn got appointed, after flynn being appointed national security advisor, the next shutter of fear that went through national security circles is when trump campaign ceo and white house -- the trump campaign ceo arranged to get

jerome powell was asked that during his first confirmation hearing in front of the senate.will take a look at what wall street should expect, next. this is bloomberg. ♪ nejra: this is "bloomberg markets: rules & returns." i'm nejra cehic. let's turn to the u.s. jerome powell was quizzed by senators in his first confirmation hearing as nominee for chair of the federal reserve. he was asked by elizabeth warren what changes he would make to dodd-frank and other regulation for taking on the role. >> we can make a more transparent, more efficient, that sort of thing. other things we can do, more tailoring, and that is what we are involved in right now. as i said, the financial system is quite strong. tailoring is one of our most fundamental principles. we want it to be transparent and we want to err on the side of caution. that, itistent with doesn't help anyone for banks to waste money, to spend more money than they reasonably need to end spend to accomplish these objectives. there are a lot of problems we need to address and the banking system. i think we have had eight years

we asked our correspondents to compare yellen and powell. they think yellen is strong in six of the eight categories we asked about, including economic expertise, economic forecasting. they think powell is stronger in regulatory expertise and knowledge. overall, not too bad for powell but he has work to do to catch up with the reputation of yellen, especially when it comes to the economy. with big changes coming to the fed, there's also big changes coming to your taxes. 72% of our 44 respondents say congress will pass the tax bill this month. 23% next month. who will benefit? just 5% say regular workers. 51% of respondents say shareholders and executives. 44% do say that both will benefit equally. there is a kick to gdp coming from this tax cut in the opinion of the economists who answered our survey. about half a point in '18, another half p'19, and a half over the ten-year average. bad, something of a kick. you'll see that when you look at the overall gdp forecast, year over year for next year. 2.85% for 2018. you can see that's risen sinc

jay powell is on track to be the next chair of the federal reserve after being approved by the senate banking committee vote today by twenty two to one with only one democrat democrat senator elizabeth warren opposing the nomination the full extent it is expected to occur firmly in the not too distant future mr powell who has received bipartisan support in the past he's sort of the federal reserve governor since two thousand and twelve mr powell also is set to replace such replace chairwoman janet yellen who's term expires in february and that same senate banking panel today also consider legislation to scale back some of the wall street reform and consumer protection act of two thousand and ten provisions known as dodd frank as the regulations relate to small and medium sized banks it's one of the areas where even a few democrats agree the law may have gone too far. under a proposal offered by chair might create though the threshold at which banks are considered too big to fail would be increased from fifty billion dollars to two hundred fifty billion recall the government bailed out