i will cover the federal reserve's commitment to transparency and accountability, financial stability and financial reform, and monetary policy. i will close by discussing prospects for the u.s. and global economies. fostering transparency and accountability at the federal reserve was one of my principal objectives when i became chairman in february of 2006. i had long advocated a more explicit policy framework as a way to make monetary policy more predictable and more effective. our efforts to enhance transparency has made monetary policy more effective, that as i will discuss, the steps of been important other spheres, as well. i expected to build on the monetary policy framework that i inherited from paul volker and alan greenspan. they solidified the feds commitment to low and stable inflation as foundations of our economic stability, and they gradually increased transparency. for example, chairman volker introduced a money targeting framework to help guard the fed's attack on high inflation in the early 1980's. and the practice of issuing a statement after each meeting began unde

i have brought a simple chart that illustrates the magnitude of the federal reserve's actions. it shows here the size of the federal reserve's balance sheet by decade from its creation in 1913, 100 years ago, to the present day. as you can see, it took 95 years for the federal reserve's balance sheet to reach $1 trillion. but look at the incredible spike in just the few years since, in the red here. here we are today just five years later at $4 trillion and growing. madam president, let's call this what it is, a back door stimulus program through monetary policy. very complicated, yes, but very important. it dwarfs even the fiscal stimulus package that president obama rammed through congress during his first days in office about five years ago. president obama's fiscal stimulus package totaled $787 billion, a lot of money. and i have just described the fed's monetary stimulus package is nearly four times larger and growing. madam president, this highly unconventional monetary policy poses huge risks to our economy, namely inflation in the future, and the devaluation of our curre

gellin to be the next chair of the federal reserve board. governor yellin's qualifications but also her views on the role and direction of the federal reserve. in recent years the fed has engaged in unprecedented politics come including purchasing trillions of dollars in treasuries and mortgage-backed securities. current fed purchases total up to $85 billion a month. as a result, the next fed chair will inherit a balance sheet that currently stands at approximately $3.8 trillion, four times higher than before the financial crisis. as a native windows i've been a longtime critic of this quantitative easing purchases your now that a reduction and asset purchases finally seems to be on the horizon, i'm concerned markets have become overly reliant on them. that's why it's essential to know how dr. yellen, if confirmed, would manage the process of normalizing our monetary policy. the fed has indicated that it will hold short-term interest rates low for an extended period. in a speech in april, governor john state the policy rates should under pres

the federal funds rate has been there ever since. to provide additional monetary policy accommodation, despite the constraint imposed by the lower interest rates, the federal reserve has turned to two alternative tools, enhanced forward guidance regarding the likely path of the rate and large-scale purchases of longer-term securities for the federal reserve's portfolio. other major central banks had responded to developments in 2008 in roughly similar ways. for example, the bavepk england and the bank of japan have employed detailed forward guidance and conducted large-scale asset purchases by the european central bank has moved to reduce the perceived risk of sovereign debt, provided banks with substantial liquidity, and offered qualitative guidance regarding the future path of interest rates. the short-term rates near zero expanded guidance about intentions for future policy has helped to shape market expectations, which in turn has eased financial conditions by putting downward pressure on longer term interest rates and helping to support economic activity. forward guidance about the short-term interest rates supplements the framework that i described earlier b

isn't it true the federal reserve is a sickly the buyer of -- federal reserve is basically the buyer of our bonds? >> senator, we are purchasing -- >> for the most part? >> we are purchasing a substantial wanted tea of -- a substantial quantity treasury and mortgage backed securities, but we certainly are doing so for the sake of helping the government finance the deficit. in circumstances where we have -- we are doing so to achieve the goals that congress has assigned to the federal reserve. in circumstances where we have run out of scope for conducting monetary policy when our overnight interest rate target has hit zero, we really have to rely on alternative techniques, and we are certainly not the only central bank that has recognized this and is undertaking similar programs. >> you allude to other central banks, and i don't know of any other central bank i think we should follow. we should set the example here, and the fed has darkly. -- has historically. i will run out of time in a minute. unemployment. you mentioned unemployment. 7.2% ornemployment is 7.3%. 7.2%. what is reall

the. federal reserve officials. now well with the fact that there are still some empty safe stuff on the board of the federal reserve had any impact on the town of picher fed policy decisions well now it's that's an interesting question and a good question because we don't entirely know who's who's going to fill the slots for example we do think that there's a good chance stanley fischer is going to be nominated hero and it's up to two to one of the slots and i think that he would find that his. policy stance is really to have lee well in line with earth and so what it really comes down to dollars is to what extent is the president pick. up. members that are shown are only in line with janet yellen thinking or the divorce thinking in general and as long as he continues to pick members that are generally in in that vein they wanted to see a large change in in the composition of the policy making behavior the followers are so if the share is nominated you expect that we'll see more of the same is that we're saying. pay

around the crisis eroded the public support for the federal reserve. in my paper there are some charts on the confidence of the federal reserve and unfortunately a lot of confidence has been declining. there is procession -- perception the fed. try hard enough. -- the fed did not try hard enough. there was little recognition in that classic function of the central-bank to provide a liquidity in a crisis. there was confusion among representatives between spending and lending. they character -- they characterized it as spending. the actions of the federal reserve and the crisis a necessaryustified and keeping with classic central banking. recovery, some actions have been perceived as distorting asset prices and save hearing -- asset prices. favoring the rich. there has been a hit to the reputation to the fed. unfortunate but true. issue is the whole discussion of the federal reserve and federal reserve policy has been caught up in this very polarized political have beenthat we experiencing in these countries these days. in the papers there is a chart of d

moving.ers are not >> we will continue the conversation in a minute. >> federal reserve chairman ben rnanke is speaking at the american economic association's annual meeting. we will listen in. >> accountable for achieving their state objectives. i was confident we can adapt this framework to the federal reserve will mandate to involve amplitude and price stability. central banks using this framework were already in practice, often pursuing economic objectives in low stable inflation, hence the term "flexible." aftermath occupies so much attention, products towards a more specific policy framework was slower than that progress toward a more specific policy from work was slower than i had hoped. the fomc introduced its quarterly projections, which keyuded protections of economic variables such as inflation, gdp growth, and the unemployment rate. we added projections to the unemployment growth and projections of the path of the federal funds rate consistent with each individual's views of appropriate monetary policy. have informeds the public on oath the -- and the path interest rates c

it is ending in tears and yet to me, the federal reserve is looking at the effect on our seniors as collateral damage. that is an acceptable collateral damage to the federal reserve and i just think that, to overlook that is really hard. i think in the last minute i would like to talk about, if quantitative easing is a good policy and has positive effects, then all countries should engage in it which in fact if japan is looked at, they're quantitative easing at double the rate percentagewise we are, so could you address the question, if it's good for one country, is it good for all countries and what effect is just -- japan's quantitative easing going to have? dr. meltzer of you would take a quick stab at it and also.or -- also. >> i think that's the definition of disaster. >> okay, that's close enough. we only have 29 seconds left. >> i think qe policies are things that people have to do because they are extremely dire circumstances. japan has had deflation for 15 years so it's one of the policies terms they are using in order to get out of two decades of deflation. are there going to be outs

it focuses on the huge discount that the federal reserve offered the megabanks during the financial crisis. and the huge market advantage that they got. and specifically, this gao report coming out today said, quote, it recommended, quote, the federal reserve board finalize policies and procedures related to its emergency lending authority. and establish internal timelines for developing those procedures to insure timely compliance with dodd-frank act requirements, close quote. what that means really dodd-frank gives you the ability to wind down that emergency lending authority. the board has not acted on that or even established as far as i know internal timelines to do that. so, one obvious question related to this study coming out today, will you do that as chairman and when will you do it? >> senator, i think that guidance is in, is in the works and, we will try, we will try to get it out soon. >> do you have a general time frame in mind? >> i'm not certain just what the time frame is but i will, i will try to make sure that that happens. >> if i could ask you to just supplement the re

five hundred these are all the products of the federal reserve essentially printing money to inflate these bottles it's it's classic pump and dump this is the same thing that those those. you know are fly by night equities brokers out new jersey to do with any stocks of pumping and dumping this is what the federal reserve is doing by printing up this money and propping up the dow jones and all these blue chip companies but there is no inherent value behind it because the problems of two thousand and eight where never solved and so the federal reserve has been very very good at keeping the problems down the road here we are in two thousand and fourteen but the problem is we're never solved and they have become worse to the degree. the federal reserve has been printing money and creating the conditions whereby eventually there will be a run on treasury bonds now i think that's why bush i just want to clarify this does that money. go to treasury bonds on the other have got a mortgage bond so. you know they do but. at this time i do believe that after this tape right to believe that the b

more broadly, the approach to regulation and supervision at the federal reserve has evolved to include a substantial macroprudential or systemic orientation in addition to the traditional focus on individual institutions. for example, the federal reserve has created the office of financial stability policy and research which coordinates system efforts to monitor the interactions of financial institutions, financial markets and economic developments to identify emerging vulnerabilities and systemic risks. enhanced monitoring of this type is especially important as the changes in regulatory structure and financial innovation may lead risks to manifest in new ways or to migrate outside the perimeter of the current regulatory structure. much progress has been made, but more remains to be done. in addition to completing the efforts i have already mentioned including the full implementation of new rules and supervisory responsibilities, the agenda still includes further domestic and international cooperation to insure the effectiveness of mechanisms to allow the orderly resolution of insolve

me to join him on the issue that i knew well was the reserve and so that really became the focus of the blog and you know honestly with among other duties just. moving beyond the federal reserve really really wasn't an option. ok now traditionally the five years of interest rates as its primary monetary policy to all but everywhere we look we hear people talking about quantitative easing now i want to ask you why has the fed resorted to kerry in the first place. well the reason they resorted to quantitative easing was because the their their traditional. tools short run interest rates hadn't been pushed as far as they go then that's essentially desirable and so they needed a new another tool in order to support the economy an asset purchases large scale asset purchases or quantitative easing was the two or in your opinion has quantitative easing benefactor. i believe it has been the thirty years i think it's been a factor that holding down longer term interest rates particularly prior to the conversation about tapering i think it was effective in setting expectations for a longer period of short term interest rates and i think those factors help support economic activ

later in the federal reserve there is a new documentary that chronicled the fed during the financial crisis, and this was an intriguing day at the economic forum with ali velshi. i'm david shuster, and this is "real money." >> this is "real money," and you are the most important part of the show. join our live conversation for the next half hour on twitter @aj real money. this has not been a very good day for all of how have money invested in the stock market. for the second day in a row stocks took a big dive, the dow dropped 318 points and the trading loss of 2%. that capped off the weekly decline that they have seen in more than a year. the tech heavy nasdaq fell 2.95%. investors appear to be spooked about what is known as the emerging markets, the rapidly developing countries of brazil, russia and china. those economies are showing signs of slowing down. the market reaction began on thursday following reports of a contraction in china's manufacturing output. that report combined with existing fears around the rising interest rates spread to markets in europe. on friday hong kong'

we're talking about the federal reserve, and it's role in the economic recovery.till with us, mark, director of financial regulations studies at the cato constitution. pedro who covers knicks in the central bank for the wall street journal, and nela richardson with bloomberg government. nela, janet yellen, i had to hedge my bets in the last segment there. she hasn't been confirmed, voted on, sworn yet, but by all accounts she's on her way in. said to be much more hawkish on getting the unemployment rate down than worrying about inflation . what does that mean in practical terms while the bank is also unwinding this long-term stimulus project? >> i think for the near term futureish it means that she has the freedom to really target unemployment as aggressively if she chooses as bernanke has in the past. she really can be data driven, deliberate, but look at a certain set of indicators, motivated by those as opposed to worrying about the specker of rising inflation. >> one of the ways that traditionally has been done is by lowering interest rates. they're practicall

very complex workings of the federal reserve system i'm joined by the host of artie's boom bust erin ade what is a how do we have you here. you love you know i'm always ok. i know you all over this is what i've been i've been in love in having you explain this for the last couple days really mind blowing stuff and i think the biggest misconception that people have of course federal reserve it's right i mean it's public but it's not why is that not the case that's exactly what i mean the title is almost intentionally miss. misconceived because it isn't a federal institution it isn't a public institution it's a private institution that serves a public mission and it fulfills this in a variety of ways but basically it's a group of private banks that kind of got together like you mentioned jungle island initially to serve the needs of the public basically to serve the banking needs of the united states of america that is what the fed does it's not it is a private institution and was designed to be a hybrid of the to make no mistake it is n

i think it's the devil and the dollar the federal reserve has been problem getting it so. she's watched and served but is zero interest rate policy now the problem is that they're going to engineer with your interest rates up until two thousand and fifteen late two thousand and fifteen at the same time quantitative easing is continuing. now all this talk of tapering doesn't mean that to me has ended basically as a something cut back on the amount of bombs that they're buying but what huey means is that every month the treasury excuse me the federal reserve prints of invents creates out of nothing but air seventy five billion dollars worth of money and use that money to go out into the markets and prop up treasury bonds now without this propping up of seventy five billion dollars a month which is approximately nine hundred billion dollars a year without this propping up for your bonds would collapse in value and interest rates would start a rock remember prices of bonds are inversely correlated to their heels now if you have the situation of escalating meals of interest rate

this year is the one hundredth anniversary of the federal reserve act you think that after a century people would have a better understanding of the history and role of america central banking system while the federal reserve act was drafted in congress the roots extend back to one thousand and ten with a secret meeting between rhode island senator nelson eldritch a group of wealthy and powerful financial figures the select group of influential men convener for a ten day top secret meeting on jekyll island just off the coast of of georgia and what resulted was a plan for something called the national reserve association an institution that would handle government debt to remain privately run and nine hundred thirteen president woodrow wilson signed the federal reserve act codified in america's most powerful financial institution one that is neither federal nor holds any reserves we're going to help me break down some questions and this conceptions about the very complex workings of the federal reserve system i'm joined by a host of artie's boom bust erin eight of what is a i've got to

the. federal reserve officials. now well with the fact that there are still some empty threats on the board of the federal reserve have any impact on the town of picher fed policy decision of. well now that's an interesting question and a good question because we don't entirely know who's who's going to fill the slots for example we do think that there's a good chance stanley fischer is going to be nominated hero and accepted two to one of the slots and i think that he would find that his. policy stance is really to have lee well in line with earth and so what it really comes down to though is is to what extent is the president pick. members that are generally in line with janet yellen thinking or that the boards think in general and as long as he continues to pick members that are generally in in that vein then when it see a large change in in the composition of the policy making behavior the followers are so if a share is nominated you expect that we'll see more of the same is that we're saying through insisted pay

but the third part of the triple whammy came from the federal reserve. its policy setters announced a further $10 billion reduction in its stimulus bond buying program. on the day the dow fell more than 1% to 15,738. the nasdaq also tumbled and s & p finished at 1774. in every other way, though, natural gas it finished at a four-year high up 10%. >>> as tyler just said. the federal reserve stuck to its plan to trim back its bond-buying program. wrapping up a two-day policy meeting and ben bernanke's lasts one as chairman of the fed, the central bank seemed unsafazed i the recent emerging markets. . neither recent emerging market currency turmoil in turkey and elsewhere nor the disappointing december jobs report was enough to get the federal reserve to change its mind about trimming its bond buying program. at ben bernanke's last meeting as chairman of the federal reserve, monetary policymakers were unanimous to reduce purchases by northerly $10 billion to 65 billion per month starting in february. leading analysts were not surprised. >> we couldn't see an

later, the confirmation hearing for federal reserve chair nominee janet yellen. programr "newsmakers" with heritage action ceo michael needham. next, fema members of congress joined politico to talk about the importance of public service. speakers include minnesota senator amy klobuchar, florida representative lightman, hawaii congressman gabbard, and misery represented and wagner. this is about 25 minutes. >> good morning. seniorggie haberman, political reporter for politico and i am july did -- and i am delighted to be joined by ms. palmer, a woman who really truly and simplify. ath us this woman we have democratic congresswoman from whitey, senator amy klobuchar, democratic senator from missouri, we have a republican congress woman from florida, and a republican from missouri, and wagner. do not forget to tweet questions and comments using #womenrule. anna has a nexus on stage and we will be tracking your questions. with that, panelist, thank you for joining us on this conversation. let's begin. >> we want to start the conversation with you, senator. there have

will the outgoing chairman of the federal reserve for his conduct communications his behavior the way that he managed the afterward see the policies that he implemented at a time it should be said when the federal government was basically withdrawing its responsibility from economic management so i think what that's about really is the over reliance on monetary policy that we've developed over the last few years. but i think he you know if he goes down in history which you certainly will as as a as the chairman of the federal reserve the most important time of crisis and western in the american economy of the western world i think you'll get good reviews i think he performed very well i and what about q.e. was quantitative easing the right policy prescription in the us i mean u.k. . that's a good question and we'll carry on debating that for a long time but my feeling is that when q.e. was introduced at the beginning. it was designed to on block the blocked arteries of credit which were the product of the financial crisis the sudden sort of heart stopping moment when liquidity

i was given the task to talk about monetary policy at the federal reserve. specifically around the issue of the zero lower bound. the zero lower bound is basically the constraint that you cannot lower nominal interest rates much below zero. it was an issue that economists and other central-bank economists had studied extensively in the 1990's and before the crisis. one thing that spurred the research was the experience of the last decade in japan and the experience of the great depression in the u.s. economists thought hard and studied how big of a threat was the zero lower bound, what were the implementations for monetary policy. at the time, interest rates were well above zero, people thought it was an academic concern. research, which identified a number of issues, i highlighted three of them. the first one was the fact that the zero lower bound is a real, practical concern. it is not just abstract, it is not japan being special or unique. it is an issue we should take very seriously. in the paper i did with dave from the board of governors, we said if you

that's the chairman of the federal reserve. at her nomination hearing before the senate banking committee governor yellen, then the vice-chair now still the vice-chair of the federal reserve, said too big to fail is -- quote -- "among the most important goals -- ending too big to fail is -- quote -- among the most important goals in the post-crisis period." that's one of the many reasons i rise today to support and argue for janet yellen's confirmation as the chair of the federal reserve. today's complex financial system, it is more important than ever that we have strong regulators like governor yellen who can recognize emerging threats to economic stability and who isn't afraid to act when they find abuses that put american consumers and workers at risk. throughout her distinguished career at the fed more than a decade governor yellen has shown she understands how risky financial practices deep inside the largest wall street banks can have a terrible and terrifying impact on american families. she was among seven or eight year

no it shouldn't if the federal reserve say target five percent nominal g.d.p. growth rate and that's kind of what it was during the great migration years from eighty four to two thousand and seven what we saw it typically happen is that real g.d.p. grew about three percent inflation about two percent you see the same kind of product it was full of it again if you focus on stabilizing total dollar spending you're not going to see any huge run up in inflation or or falling is we target normal g.d.p. you're still a korean long run inflation expectations so you wouldn't see a big destruction of the bond market you still have the the long run price stability that inflation targeting brings but in the short run it gives you a whole lot more flexibility to respond to economic shocks provide more stability and december two thousand and eleven the economist say there was an article published in there on how the economic crisis triggered a rise in various schools of economic thought in the article said quote the market monetarism is the first economic school of thought to

no it shouldn't if the federal reserve say target five percent nominal g.d.p. growth rate and that's kind of what it was during the great migration years from two thousand and seven what we saw it simply happen is that real g.d.p. grew about three percent inflation about two percent you see the same kind of product it was full of it again if you focus on stabilizing total dollar spending you're not going to see any huge run up in inflation or or fall on it's we target normal g.d.p. you're still a korean long run inflation expectations so you wouldn't see a big destruction of the bond market you still have the the long run price stability that inflation tare brings but in the short run it gives you a whole lot more flexibility to respond to economic shocks provide more stability and december two thousand and eleven the economists there was an article published in there on how the economic crisis triggered a rise in various schools of economic thought in the article said quote the market monetarism is the first economic school of thought to be born in the blogosph

>in terms of the bond market and the quantitative using program of the federal reserve's,my expectation is that the federal reserve will continue on their quantitative easing program and they're going to continue on the type tapering of that program. so we are likely going to see another $10 billion reduction in the large- scale assets purchase program which is gonna put the federal reserve on track to end the large scale asset's purchase program sometime in the second quarter of this year. so far the economic data that coming out really supports that decision. should investors start to prepare for some sort of bond crash? say if all of a sudden and interest rates go sky high and the decline happens to be huge in the bond market. > i don't think i would call it so much as a bond bust or a bond fallout. i definitely think that we are at the lows in interest rates. obviously we are going to mean revert, meaning that we're probably going to go back to historical norms. which means that we're going to experience higher interest rates. of course that's what happened over a period of time, so

investigative unit has tonights >> the fertile reserve is one of the most powerful and widely misunderstood partsd of government. the documentary, money for nothing inside the federal reserve takes a critical look at the fed's history and its impact on the american economy. the film debuts on sunday. here a preview. >> what exactly is the fed's job, it does control the money supply, sets interest rates, regulates banks and supposed to ensure the safety of the financial system. the fed is supposed to be the guardian of financial stability, preventing chaos in financial markets. usually it can do that. in the summer of 2008 it couldn't do that and we did get chaos. >> jim bruce directed and produced the film. he joins us from los angeles. jim, good to have you with us. you do a phenomenal job of explaining the federal reserve, the economy and our last recession in the ways that everyone can understand. but you are very tough on allen greenspan and ben bernanke, they you say, bowed to the banks to cut back regulations. but they each saved us from financial crises. >> the tricky thing is you have to look at the short term and the long term. in the short term if you loo

the u.s. federal reserve. he had to deal with the worst financial crisis since the great depression. he oversaw a massive government stimulus program. he gets to watch as janet yellen takes the helm, a groundbreaker for many reasons. linda you looks at the road ahead. in the 100 year history of the u.s. federal reserve, there have been many different years of -- many different ways of handling the economy, but always one, and nominator. there was a man in charge. but that is changing. janet yellen is taking over. a 67-year-old former academic, moving up from the number two job at the fed, she will present a radically different face but not a radically different policies from her predecessor, ben bernanke. recovery, hee flooded the economy with cheap cash and capture rates low. now that the economy is getting back on track, janet yellen's era will be different and she has made clear her focus. >> the mandate of the federal reserve is to serve all american people. too many americans still cannot find a job and worry how they will pay their bills and provide for their families. the fede

the federal reserve's commitment to transparency and accountability, financial stability and financial reform, and monetary policy. i will close by discussing the prospects for the u.s. and global economies. fostering transparency and accountability in the federal reserve was one of my principal objectives in front were 2006. i had long advocated increased transparency and in particularly a more explicit policy framework to make policy more predictable and effective. my efforts have made it more effective, but i will discuss the steps are approved important in other spheres as well. as a beginning expected to build on the framework that i inherited from paul volcker and alan greenspan. my predecessors had solidified the commitment to low and stable inflation as foundations of broader economic stability and they gradually increased the of monetary policy, deliberations and plans. volcker introduced a framework to help guide the fed's attack on high inflation in the early 1980s and the practice of issuing a statement after each meeting as cf one c again under chairman greenspan. i believ

is the job of being federal reserve chief also political? >> no doubt. i'm sure that janet will be very attentive to her relationships with important senators and congressmen up on the hill and with other central bankers. the job is to make sure that the fed maintains its political independence, but also is not subject to political pressure. and that's a tough line to follow. >> and finally, stephen, if you could say one thing to janet yellen, what would it be, stephen oliner? >> good luck and be yourself, because i have complete confidence that she's going to be a great fed chair. >> want to thank you both very much. stephen oliner american enterprise substitute and alice rivlin from the brookings substitute.

thes the job of being federal reserve chief also political? >> no doubt. bee that janet very attentive to her with important senators and congressmen up on the hill and with other central bankers. the job is to make sure that the fed maintains its political independence but also is not subject to political pressure. that is a tough line to follow. say onely if you could thing to janet yellen, what would it be? >> it would be just good luck and be yourself because i have complete confidence that she will be a great fed chair. >> who want to thank you very oliner and alice rivlin from the brookings institute. ♪ >> live from pier 3 in san francisco, welcome to bloomberg -- the late edition of bloomberg west where we cover the global technology and media companies that are reshaping our world. i am emily chang. our focus is on innovation, technology, and the future of business. let's get straight to the rundown. ces is about to kick off. google has turned out

lodge them both with the federal government by creating debt deficit spending that it's basically running up the national credit car and on the other hand you have the federal reserve that is obligated i would consider it irresponsible monetary policy whether the united states will fall out of democracy and become some other sort of. government i would venture to argue i'd say a lot of it would agree with me that the united states is. no longer a democracy and hasn't been a democracy for you know at least a decade or so united states to me it seems is more i would call it a kleptocratic oligarchy where you have very rich people more or less control the political process especially after citizens united versus the. the. federal trade commission general election commission and where whereby a company can spend literally unlimited amounts of money in order to get somebody elected on the one hand and on the other hand you have the clock the. crafting part of it where you have people who work in government and then they exit the government and use their government contacts to get themselves are really great contracts i mean my my bet you are in that particular case is m

. >> historic confirmation, janet yellin will become the first female chair of the federal reserve. when she takes the helm, what will be her biggest economic challenge? >> deep freeze -- the coldest weather in decades snarls business travel nationwide. thousands of flights are scrubbed. how bad weather will hit the airlines' bottom line. >> and $2 billion deal, jpmorgan, bernard madoff's main bank of over two decades is reportedly near a settlement over it role in the scandal. will this help the bank's massive issues? all that and more tonight on this monday, january 6th. >> good evening, everyone, and welcome. it's an historic day for the united states and its economic policy. for the first time ever, a woman, brooklyn-born economist janet yellin, is poised to be sworn in as the nastion's top banker. early this eve tng senate voted to confirm the 67-year-old yellin as the chair of the federal reserve. she's now its vice chair. eamon javers joins us live in the nation's capitol with more on tonight's vote and what it means for interest rates, the fed's stimulus plan, and the america

yellen prepares to head the federal reserve. what challenges does she face? we will take a look. is the price of ignoring a ponzi scheme? we will examine the jpmorgan settlement. ♪ >> i am julie hyman. let's take a look at where stocks are trading. we have a rebound today after three down days for the s&p 500. stocks are higher today. people are looking ahead to earnings season and the earnings report on friday. in terms of movers, we're watching the best performer last year, not so great today. netflix was up about 300% last year. , it was cut. we will have more on the markets for you in 30 minutes. you will get more "lunch money" after the break." ♪ ," this is "lunch money trimming live on bloomberg.com. today's moving pictures, where the video is the story. temperatures are plunging as a mass of arctic air fleets across the country. it was a d in central park yesterday. scientists call the cold air a polar board-checks. if you're outside, you're probably calling it something else. commitmentel chapter ,- cap her commitment to appear after being injured in a cross- country ski

leadership both with the federal government by creating debt deficit spending that it's basically running up the national credit car and on the other hand you have the federal reserve that is obligated i would consider it a responsible monetary policy whether the united states will fall out of democracy and become some other sort of. government i would venture to argue i'd say a lot of it would agree with me that the united states is no longer a democracy and hasn't been a democracy for you know at least a decade or so united states to me it seems is more i would call it a kleptocratic oligarchy where you have very rich people more or less control the political process especially after citizens united versus the. the. federal trade commission general election commission and where whereby a company can spend literally unlimited amounts of money in order to get somebody elected on the one hand and on the other hand you have the clock the. cracking part of it where you have people who work in government and then they exit the government and use their government contacts to get themselves or really great contracts i mean my my bet you are in that particular case is mic

keep it afloat with artificially low interest rates thanks to the corruption of janet yellen the federal reserve bank and such a bank. around the world and accounting fraud not arthur andersen because they have already been put out of business but the big four that are left are too big for accounting firms are unable jamie diamond off balance sheet and run like scandal now of course with enron famously when the audio clips were played of their phone conversations they were making fun of ripping off granny and california well the same thing here is not only did they use that same exact to j.p. morgan you said it same exact enron scandal and fraud but they say foreclosure fraud investor fraud cheating customers market manipulation library now the coup de gras to j.p. morgan's had a reputation a two billion dollar fine for closing his eyes and covering up as bernie madoff literally built widows and orphans along with a lot of other families and charities now comparing this to the sink estates of course it's very difficult for old people old ladies to walk across the estate safely here it's difficul

no it shouldn't if the federal reserve is a target five percent nominal g.d.p. growth rate and that's kind of what it was during the great migration years from two thousand and seven what we saw it typically happen is that real g.d.p. grew about three percent inflation about two percent you see the same kind of all of it again if you focus on stabilizing total dollar spending but you're not going to see any huge run up in inflation or or falling is we target normal g.d.p. you're still anchoring longer on inflation expectations so you wouldn't see a big destruction of the bond market you still have the the long run price stability that inflation tare brings but in the short run it gives you a whole lot more flexibility to respond to economic shocks provide more stability and december two thousand and eleven the economists say there was an article published in there on how the economic crisis triggered a rise in various schools of economic thought in the article said quote market monetarism is the first economic school of thought to be born in the blogosphere with

ship makes is a long awaited debut on boom bust today in today's show mr ship weighs in on the federal reserve present and future then we're taking a look back and highlighting some of the best hits from boom bust this past week it's a boom bust brady said you won't want to miss that plus the effervescent ed harrison and i feel your questions comments and concerns in today's in the margins it's the part of the show where we put you the viewer in the driver seat please please drive safely it all starts now. to pick six office confirmed thursday that euro zone inflation. slowed in the month of december now the e.c.b. sees no immediate risk of deflation and wants to keep inflation below or close to two percent over the medium term they've expected a prolonged period of low inflation now the fall in inflation rates is linked to an overall economic adjustment and restoring competitiveness of europe's southern periphery countries like spain portugal and greece were growth collapsed during the crisis and triggered a massive austerity push. elsewhere and initial claims for unemployment insurance in th