guest: the federal reserve is a complicated and the board of governors is part of the federal government come in washington. -- federal government, in washington. our system is comprised of 12 regional banks which are technically owned by the commercial banks in each region of the country and the commercial banks hold shares in the fed. they do not have operational jointls but it is a public-private entity. i am not sure about the statements in the second part, it is possible to replay the national debt although we are not in danger of doing it soon. host: thousand oaks, california, good morning, sam. caller: good morning and thank you for taking my call. i have a full us -- question on the need for the fed. i have no interest in politics or politicians, but i do question why the fed exists. the fed interest rates, when market forces can accomplish the same outcome, much more effectively and efficiently. if i want to lend to my neighbor and i trust him, i can set an interest rate of 1% and if i want to sell or lend to the other neighbor and i do not trust him, i can set it at 2%, why do

with the president fingering the federal reserve is behind the falloff. why david stockman says the federal reserve isn't your problem, mr. president. right now the overhyped market is. he next. a porfolio based specifically on their needs. we're fiduciaries, stewards of our clients' money. entrusted to do what's right. it's a mission. a guiding principle our firm lives by. charles schwab is proud to support more independent financial advisors and their clients than anyone else. visit findyourindependentadvisor.com experience a blend of refined ...and raw power. engineered to take the crown. the lexus ls 500 and ls 500h. experience amazing at your lexus dealer. when you're looking for answers, it's good to have help. because the right information, at the right time, may make all the difference. at humana, we know that's especially true when you're looking for a medicare supplement insurance plan. that's why we're offering seven things every medicare supplement should have. it's yours free just for calling the number on your screen. and when you call, a kno

the current federal reserve's fault that we had this drop yesterday and today that comes from the fact that the federal reserve over these past ten years the q.e. manufacturing created a massive amount of credit over all these years which causes the distortions in the malinvestment and that day out the most important thing if you're looking for looking for a free market economy you have. interest rates. settled by the economy the free market because it's a very very important information so i don't i think the president's wrong in thinking that he can just lecture the federal reserve and the federal reserve is wrong because they think they know what is the right thing to do and they don't know what the right rate of interest is or the right number of supply of money that can only be decided by the market the effects of the fed's interest rate increase are being felt in asia as well with stock markets in china japan and south korea suffering on thursday financial commentator jim rogers gave us his thoughts on the volatility that we're seeing truth is that the federal reserve di

or president trump's initial criticism of the federal reserve's rate hikes had only added to market jitters and on thursday he wasted no time in taking another swipe at the fed i think the fed is out of control i think what they're doing is wrong. the obama administration you had a lot of help because they had very little interest you know when you talk about economies our economy is far better than that but we have actually we're paying interest and they were they were using it for the money. but i think the fed is for too stringent and they're making a mistake well let's go straight over to our financial correspondent yens quarter now he is all not wall street yen for the blame game is afoot trump hitting out at the federal reserve and its interest rate policy all day the guilty party here. well it is possible that the rising interest rates might be a damper on economic growth here in the united states but the big question is the why of the federal reserve increasing interest rates and that is partly because of the politics of the trump administration for example when they started there w

but going after the federal reserve, the risk in that. katherine, you think the president is taking the risks because he's countering his own views set in the 2016 presidential campaign when he bemoaned that the federal reserve was rigging the markets and that they had to get back to an equilibrium? now we're getting back to that equilibrium and he doesn't like it, he's president. >> right. but i would say this is short term. the president doesn't have to reel too much against the federal reserve. the fed doesn't have to hike more than three times next year. we saw inflation this morning. it was below expectations. a deceleration from last month. so i don't see the impetus to go more aggressively than the fed. by the way, it's discounted. so three times next year is the max. i expect earning season that starts tomorrow to be phenomenal. 20% is what i'm expecting. let's face it, economic growth is strong. so i'm talking this, neil, as an opportunity to buy. that's what i'm recommending to my clients. >> larry, the economy is strong. no doub

2155 economic growth regulatory relief and consumer protection act providing testimony will be the federal reserve vice chairman for supervision, federal deposit insurance corporation chair mcwilliams, national credit union administration chairman mark backwaters into the controller of the currency. each of these agencies plays an integral role in the provisions of the law. as policymakers is our job to enact regulations that not only ensure property. safety for the markets that are also tailored appropriately. shortly after signed into law the pin to see some of the unintended cumulative three burden that had once been financial institutions. for years, i and other members of the committee on both sides of the aisle work to find a solution to provide meaningful relief to financial institutions and we succeeded in crafting s. 2155. since signed into law by the president having passed both the house with significant bipartisan support. the primary purpose is to make targeted changes to simplify and improve the regulatory regime for the community banks credit unions and regional banks to promote eco

the federal reserve's implementation of the directive is under way. in my testimony today, i'll describe the progress we've made to date on tavgsz set for the federal reserve in the act and also highlight the work that will be our top priorities in the next few months. turning first to the progress that we've made to date, among the act's key provisions are targeted tailoring measures to reduce the regulatory burden on community banks, to provide clarity to the public, the board and the federal banking agencies in july issued public statements on the regular regulations and reporting requirements that the act immediately effected, indicating that we would give immediate effect to those provisions before the formal regulatory changes were fully implemented and in august the board began implementing these and other aspects with final rules. one interim final rule raised the asset threshold from $1 billion to $3 billion for bank holding companies, to qualify for what's known as the small bhc policy statement. the rule renders most bhcs and savings and loa

you can go through the same thing and say how much is this person of the federal reserve system or from a different advantage point and find a lot of consistency that the person is from the federal reserve. >> if i can respond quickly. i was struck as i read the transcripts in that era as to how out of tune some of the fed bank presidents were about what was happening in their own particular district. i won't mention any names. there's one in particular who didn't have a clue as to what was going on in that person's district. i don't see why it's going to be any different next time. even if you look at having the right people in place and the right diverse opinions. you have, at the time of the crisis unfolding you have two of the four most experts in the world on the board saying, no. short term. forget about inflation. >> that's wonderful. >> i love your presentation. i wondered if you could just talk about 2003. i remember that moment when my wife and i bought a house here in washington and i said interest rates will never be this low again. and but it was baffling, too, as an econom

the federal reserve is a federal agency. rsees a system of federal reserve banks, which are owned by consortiums of commercial banks in each region. but the federal reserve board here is part of the federal government. host: any sense of why they would ask that? guest: this is a common theory. and there is a hybrid structure where operational arms of the fed are under private ownership, but there is a public board in washington that controls the system. host: how many people serve on the fed and how often do they meet? guest: there are seven seats on the board of governor. it is unusual for them to be filled all at the same time. right now, there are four members. they meet eight times each year. host: how long does the chairman get to serve? term. it is a four-year most serve more than one term, although janet yellen, the last, only served one term. host: deborah in new york. good morning. caller: good morning. i am curious if the european union has an equivalent to our federal reserve. i will take the answer off-line. thank

points of the nasdaq composite lost by more than four percent or so donald trump claims that the federal reserve was those interest rate increases is the guilty party here for the heavy selling pressure on wall street so yes does the president maybe have a point there that. that is the fed wellington certainly when. well certainly i mean when interest rates are increasing then it can be a damper on the economy and actually that is also one reason why the fed increases interest rates to prevent an overheating of the economy or to prevent inflation getting out of target so the respect for the president is not entirely false but the big question is not that the federal reserve is increasing interest rates where why and one big reason are the huge tax cuts from u.s. president donald trump that just would lead to inflation tendencies i'm here in the united states so he's not entirely wrong but actually he's the one who sort of put the federal reserve under pressure to keep interest rates rising so fears of an overheated economy there are there for us in new york thank you yes. more bad numbers for ge

the so in that respect the president is not entirely false but the big question is not that the federal reserve is increasing interest rates where why and one big reason are the huge tax cuts from u.s. president donald trump that just would lead to inflation tendencies i'm here in the united states so he's not entirely wrong but actually he's the one who sort of put the federal reserve under pressure to keep interest rates rising so fears of an overheated economy there are there for us in new york thank you yes. more bad numbers for germany's biggest lender reporting a sixty five percent drop in your on your profit for the third quarter leadership says it needs time to right the ship but investors remain impatient and bank shares have fallen forty one percent since the beginning of the year in a letter to employees c.e.o. christians a ving said georgia is on track for its first profitable year since two thousand and fourteen once one of europe's leading financial institutions has struggled since the financial crisis. the european parliament has also agreed on that use twenty one thousand budget

president trump for the third day, jonas is blaming the federal reserve, the thinking is the theory ist he is saying the stock market run up was spectacular on my watch it's the federal reserve's fault we're having market mayhem, and some people on wall street agree with him. your take jonas? >> i've got to say i agree with not the hedging part that he's doing but the overall concept that the federal reserve is run by stogy people who somehow think we have to have 5% rates to be at a normal range is a recipe for causing another recession. there's no rule we have to be higher. the inflation luckily came in low today. there's no reason to continually rapidly raise rates it could cause a global financial crisis for no reason, because the longer term bond market investors are very happy earning rates right around inflation. they don't seem to care and that's great there's a lot of money in the system so he's on to something and that is watch what you're doing and i'm not saying we need 0% rates but the federal reserve is acting like this is the hottest economy in all-time about to burst in

the federal funds rate might increase. no one on the fmoc was thinking of a rate increase. on august 16, the federal reserve board cut the discount rate by 50 basis points but bernanke did not want to cut the fed funds rate. most banks had access to the fed funds rate at 5.25, which was the fmoc's target rate. why would they want to borrow from the fed's discount rate at 5.75? it made no sense? and banks did not borrow. more importantly, for years, the discount rate and the fed funds rate has been adjusted together. the discount rate, a hundred basis points above the funds rate. the irregular policy action of cutting the spread between the two rates to 50 basis points accomplished nothing other than to make experienced market participants wonder what was going on. in my paper, i discussed several other irregular policy actions. none of which, i argued, made any policy sense. for 40 years or more, the economics policy literature had studied the case for policy predictable and there was no published paper that demonstrated advantage from deliberate or accidental creation of policy uncertainty. robert lucas, w

the blame game is afoot, trump hitting out at the federal reserve and its interest rate policy. e they the guilty party here? >> well, it is possible that the rising interest rates might be a damper on economic growth in the united states, but the big question is why the federal reserve is increasing interest rates. that is partly because of the politics of the trump administration. for example, with the massive tax cuts earlier this year, we have an economy in the united states was almost full employment, and then you have those massive tax cuts. that is also driving inflation higher. if you look at trade policies, that makes imports more expensive into the united states, so those are factors white inflation is on the rise. not massively yet, but that is one of the reasons why the federal reserve is increasing rates, not just because they want to but because they have to. >> you and i have been talking about record after record after record in recent months. what we are seeing -- is is simply a downturn or a correction? >> that is the big debate we are having. is it a correction

the federal reserve hints at more rate hikes ahead. contributing to another volatile day on wall street. >>> toy story, some of the world's largesttaers are making a play this holiday season for the $11 billion hole left by foist r us. >> are you feeling lucky? well there is more than this illion up for grabs week as lottery fever grips the nation. those stories andn more nightly business report for wednesday, october 17th. >>> and we do bid you good evening, everybody and welcom was the selloff that wasn't. when the opening bell rang this morning stocks fell sharply. just like that half of yesterdas gains were erased. however the intense selling didn't lass. stocks climbed back. even after the release of the minutes from the recently hawkish federal reserve meeting, stocks held steady. so after some oh bouncing around here is where things settled out for this day at least. the indus fial averagel by 91 points. we're now at 25706. it has been down more than 300 today.at one time nasdaq fell by just 2 points. the s&p off a fraction. >>>

the federal reserve's implementation is underway. will testimony today, i describe progress on tasks set out for the federal reserve in the act. i will also highlight our top priorities. turning first to the progress we have made today, among the act's key provisions are measures to reduce the regulatory burden on community banks. the board and the federal banking agencies in july issued public statements on regulations and reporting requirements, indicating we would give immediate effect to those provisions before the regulations were fully implemented. in august the board began implementing aspects of the law with interim, final rules. one interim, final rule raised the assets threshold from $1 billion to $3 billion for bank holding agencies to qualify for a small policy statement. seesule renders moche bh 'sth less -- renders most bhc relief from consolidated financial regulatory reports. another rule expands eligibility for small firms to go through 18 month regulation cycles rather than an annual cycle. addition, the task of deve

relaunch the us because we have the federal reserve and its minutes to out for the open committee meetinge just had the president calling the federal reserve a little bit out of control and how they are raising interest rates, a re control and how they are raising interest rates, are they? they are probably not out of control at all and what they are doing is trying to manage the economy so that it does not overheat. certainly we are going to be looking for two very simple things over the support, doesn't mention inflationary problems, does it mention volatility? this a bit too things that say the market are we right in pricing another hike for the interest rates? all the activity around inflation has been stronger, suddenly capital spending, it now remains to be seen whether it can show up in the inflation numbers. but certainly if abe is linked to discuss bringing the sales tax back, obviously the economy is doing a lot better there and some were expecting. international monetary fund and world bank's meeting ended on sunday with a call for the same approach to international trade issue

i must dress he's not the only one to have problems with the federal reserve he deems going too far. time to president nixon having interesting conversation about the conversation that was taped about moves that then federal reserve chairman was then making two-rate. listen to this. >> we reduced the discount rate today. >> yeah, yeah, good. >> what is it now? >> we got it down to four represent. and typically when we reduce the discount rate or make a change we merely say we make the change in order to bring the discount rates in line with market conditions. >> right, right. >> this time we set were doing it partly for that reason but also to further economic expansion. >> good. good. that's what you put out in the statement. >> we put out a statement and that will be in the press tomorrow. >> good. that comes in the same date we sign the tax bill which is good. neil: think about that. that is arthur burns and the line that stood out to me there and i thought you would be pleased. that was arthur burns letting the guy who chose him i hope you are happy with it. it's not as if it's un

but the big question is not that the federal reserve is increasing interest rates, but why. e big reason are the huge tax cuts from u.s. president donald trump that would lead to inflation tendencies here in the united states. so he is not entirely wrong, but actually he is the one who sort of put the federal reserve under pressure to keep interest rates from rising. steven: jens korte in new york, thank you. cuba was once a world leader in sugar production. at one time the sweetener accounted for 75% of cuban exports. now for the first time the communist nation is turning to imports from as far away as france. hurricane irma ravaged the island and its harvest, and that wawas followed by an unususually long rainy s season. reporter: he quickly noticed the curious turn of events. sugar tends to be brownish, but the frenchch version is white. >> the sugar that has been now arriving is good. it is very sweet. not very differerent from cuban sugar. the main difference is the color. reporter: cuba's sugar industry was once the flagship of the island's agricultural exports. it illu

jason: specifically about the federal reserve and the excerpts in the magazine go to the heart of theionship, that sometimes uneasy relationship between the federal reserve and the white house. tell us what he experienced. christine: back in the day when he was serving the johnson administration one of the , stories is about him attending a meeting between henry fowler and chairman of the federal reserve william mcchesney martin, who is famous for calling the fed's job is to take away the punchbowl before the party gets started. president johnson am a what he witnessed in that meeting which was private and the white house was watching president johnson trying to influence the fed to prevent them from raising rates. he describes that in vivid detail. we also excerpt an example when he was on the federal reserve himself in the he had been 1980's. reappointed by reagan after carter had initially elected him in 1983. in 1984, an election year, and he was summoned to the white house and had a surprising experience. carol: let's describe it. because it is fascinating. you do say it does not

capitalism and the evolving culture of risk and finally president and chief executive officer of the federal reserve bank of minneapolis from march 1985 way through augus august 2009 which is some kind of a record and also the co-author of too big to fail the hazards of bank bailouts published by the brookings institution in 2004. thanks to all of you for taking part in this discussion today. i'm going to start by asking several questions of the panel and after we are done discussing the book among ourselves we will open up in about 45 minutes to questions and answers from the audience which we will conclude and take part in a reception. i would like to start by asking the obvious question which is why did you choose to write a book about the city ended in particular i would like to know whether that's because you consider city story unique or because you think it illustrates a more pervasive problem with the banking system and policy. >> i decided to get involved because he said we should write this book. >> i'm not sure if it is her microphone. >> the real genesis of the book is the idea of serial

the previous federal reserve chair was janet yellen and this was she was an obama era head of the federal reserve and president trump said she did a good job but he wanted somebody else so he picked the older white guy. jay powell and who is generally seen as a solid fellow always a traditional republican and so he nominates jay powell gets confirmed by the u.s. senate and then he says the feds crazy so this is his guy first of all who he's criticizing and says is gone loco and the reason he's doing it is because he is a guy coming out of real estate who lights likes interest rates low and thinks that that's such a good thing and as you're an individual consumer you say sure like interest rates low but if interest rates stay low we're going to have all this essentially the federal reserve printing money and the economy will overheat and we'll have a big crash because if the growth doesn't keep up with all of the debt that's out there because of this tax for bill you paid you talked about then the if we did deficit increase increase and create the borrowing gets higher and higher and at so

beth president of the federal reserve bank of chicago joins us for an interview just after 11 a.m. on time. minas: and another voice from the fed later on. jay powell last night. and the president of the federal reserve of philadelphia. both will speak on bloomberg. ♪ ♪ are taking a look at a live shot of washington. the latest rhetoric from washington to the king of saudi arabia, watch out. he would not be in power for more than two weeks area a warning shot from mr. trump. the press reports that the italians may, may lower the deficit. that is moving markets of this morning. speaking of which, the fed chair, jerome powell, has said he expects to stick with the central banks gradual path of interest rate hikes. calling it a reflection of economic strength of the times you are in. this historically rare pairing of steady low inflation and low unemployment is a testimony to the fact that we remain in extraordinary times. policy of gradual interest-rate normalization reflects our efforts to balance the inevitable risks that come with extraordinary time. so as to an current mesh extend

that's an argument that it will be worse number two because of the last question the decision of the federal reserve that both republicans and democrats supported to bring interest rates down to flood the economy with money interest has been very low governments therefore have borrowed like never before corporations have borrowed like never before and individuals have come back from the crisis of two thousand and eight borrowing ever more particularly to send their kids to college at a time when future job opportunities are not so great. see. the ability to keep inflation genie in the bottle is about bringing so we see prices going up across the board well it's just one of them we see interest rates rising that's inflationary we see the dollar eventually cracking and a catastrophic collapse that's usually inflationary so price across the four go up that makes that russia saudi arabia venezuela. their oil based economies they all benefit wildly from this emerging market takes the benefit of this oil and gold gold starting to perk up. but going of course would skyrocket two hundred thousand plus. it's

evans responds when i asked if he thought the president should be commenting on the federal reserve thehas >> i can't answer that, but i'll say the federal reserve has a large amount of autonomy that is granted us by congress and the president through the federal reserve act. we are supposed to support monetary conditions that promote price stability. >> this is how the fed officials are going to respond, they're not going to engage in a back and forth with president trump but what they're going to do is talk about their policy and charles evans said the economy is very strong, necessitating rate hikes here's what he says about the outlook for interest rates. >> i kind of think neutral, 2.75 to 3%. after many years of accommodative policy which i supported strongly because inflation is now 2%, it is time to readjust the policy stance to at least neutral, see how the economy is performing, and we may have to do more after that >> i asked him what a little bit more is. maybe 50 basis points. do the math. 3.25 to 3.5 if needed with stronger economy i will say, he pointed to the president's

of blame at the us central bank of the federal reservelj of blame at the us central bank of the federal reserve gone crazy. i wonder what jerome powell has to say about that. we have neena from the wall street journal with us for the briefing. interesting times. we thought this relentless bull run would have to come to an end at some point and there would be some sort of correction. what is your take on what is going on? as you said, we have been expecting a correction for a long time. and given it has been ten yea rs a long time. and given it has been ten years since the financial crisis, it must end at some point. that it hasn't, so far. and this might not be the end. we have seen markets go down a bit earlier this year, we also saw it in previous yea rs year, we also saw it in previous years but we have not seen that stabilisation on a lower level that people were expecting as, for example, the federal reserve in the us is raising rates and also qualitative easing is ending in the eurozone. of course we have a number of factors coming together such as federal rates but also warnings by the i

he's worried that the federal reserve is going to raise rates too quickly here. get softer inflation data, that relieves some of the pressure on the federal reserve here. and that's a good thing. and that's why i think investors are kind of confused about what to do here. just to reiterate, guys, the president called the federal reserve loco. he said they have gone loco. they're raising rates too fast. i will couch his comments because there are a lot of investors looking at this situation saying there are a lot of risks around the world, trade, gas prices, mortgage rates. should the federal reserve be talking about raising rates quickly here, probably not. so there's some people that might agree with the president here, guys, and say the fed needs to be more careful about what it says. >> there's a reason the federal reserve is independent from presidents. >> and presidents don't call the fed crazy. you kind of laugh about it, but it's not a laughing matter. this is serious stuff about an independent institution that is responsible for giving us accurate data and

the so in that respect the president is not entirely false but the big question is not that the federal reserve is increasing interest rates what why and one big reason are the huge tax cuts from u.s. president donald trump that just would lead to inflation tendencies i'm here in the united states so he's not entirely wrong but actually he's the one who sort of put the federal reserve under pressure to keep interest rates rising so fears of an overheated economy there are there for us in new york thank you yes. cuba was once a world leader in sugar production at one time the sweetener accounted for seventy five percent of cuban exports but now for the first time the communist nation is turning to imports from as far away as france hurricane ravaged island and its harvest and that was followed by an unusually long rainy season feliciano viro quickly noticed a curious turn of events when produced from cane as in cuba sugar tends to be brownish but the french version comes from beets and is white. and is on the sugar that has now been arriving is good it's very sweet not very different from cuban

tacky, that it didn't make him look good, but the president of the united states going after the federal reservely-nilly hikes in interest rates are scaring the markets and annoying the president. did he hit on something that's core here? does the federal reserve risk overdoing it and killing a good thing? to economist ben stein on all of that. what do you make of that? there's a raging debate whether that's a good thing for him to be doing, the president to be doing. what do you think? >> i think the federal reserve is not a sacred cow, it is not above criticism, that people are allowed to criticize it, but what else can the federal reserve do when inflation starts rearing its head, to be sure in a modest way at this point, what else can they do but raise interest rates and try to cut down their balance sheet a little bit? they've got to do something. if they don't do anything, and inflation gets out of control, then people are going to come along wanting to kill them. neil: it is a pavlovian response, though. economic activity picks up with the president saying all right, he gets that. i think

president donald trump he's called the federal reserve crazy for raising rates. global markets were shaken by trump's comments but so stocks in asia follow wall street's rout the contagion spread to europe where germany's benchmark techs lost one and a half percent investors around the world are nervous and trump lost no time ramping up his rhetoric. but i think the fed is out of control i think what they're doing is wrong. you had a lot of help because they had very little interest you know when you talk about economies our economy is far better than that but we have actually we're paying interest and they were they were using for the money. but i think the fed is for too stringent and they're making a mistake troops remarks of coma's the international monetary fund and the world bank hold their own you will meeting in indonesia the mood there's been pretty bleak not only have they both lowered their forecast but global growth they've also released a report that says the world's financial system is at risk i.m.f. chief christine lagarde even made a veiled referen

but do you think the federal reserve is starting to reconsider? >> i don't think the rally back today, or whether the nasdaq punches into positive territory today has anything to do with rates. i think we saw major, major selling and a great buying opportunity today. now, i wouldn't say volatility is over with. that being said, i don't think the fed is going to bow down to president trump. i don't believe that they will, you know, acquiesce to his thoughts of rates not having to go up. i do believe they do need to go up. now, that being said, something that's very interesting that really hasn't been publicized much yet, there are three open positions on the federal open market committee. three positions for president trump that he can put into place over the next few months, so if he really wants to, he can start hand-picking, hand-selecting some dovish representatives, perhaps, to go into those spots that would then possibly mediate some of the hawkish comments, some of the hawkish feeling of the fed right now. but in the near future, no, i do not

and president trump says when the federal reserve for the market settle, not his trade war with china. the president told fox news that quote the fed is going loco with raising interest rates. last month he said he was not --py the fed has rate raised

the federal reserve taking a presidential beating. ill looking to deliver more rate hikes leaving most wall street strategists to curve flattening going at the 2019. -- into 2019. we begin with a big issue. a messy week on wall street. >> we will see more talks about u.s. treasuries. >> for us, fixed income is the biggest risk in the financial portfolios. >> what to watch is going to be credit than treasuries, because of we continue to see rates rise, what we may see is people bail out of certain sectors of credit. >> we think that means you ought to be cautious in high-yield, high grade, those are places where you need to be careful. >> there is no new information that came out about the fed. if the market suddenly got it, that is the market's issue. the fed has been clear. >> at some point to when they start fighting hard and we see the corrections and you see the implications and real data, the fed probably have to back off, -- has to back up, but that is not today. it is probably the first half of next year. jon: joining the around

latest market swing started after the federal reserve announced september 26th that it was raising its main rate called federal funds rate. key lending rate from 2% to 2.25%. the fed signaled it could have two more rate hikes this year. wall street is concerned about the interest rate hike because of what it is doing to 10 year treasury note. this is what the federal government sells to pay its bills. the yield on that, yield is interchangeable with interest rate has spiked almost eight tenths of a percent. the biggest in the last few days. typically, you see a smoother line. we have seen some jagged lines. this came up. the interest rates on these bonds rise, investors tend to pull money out of the stock market and put it in safer investments, things that pay interest. let's think of the fed as a car, a car with no steering wheel. we have been talking about this for years. has a brake pedal, a gas pedal. when you raise interest rates, it is like tapping the brakes on the economy, slows things down, makes it more expensive to borrow, so you think twice of doing it. when they want to bo

an argument that it will be worse number two because of the last crash and the decision of the federal reserve that both republicans and democrats supported to bring interest rates down to flood the economy with money interest has been very low governments therefore have borrowed like never before corporations have borrowed like never before and individuals have come back from the crisis of two thousand and eight borrowing ever more particularly to send their kids to college at a time when future job opportunities are not so great that is very dangerous because what debts do when they pile up like this is they ramify any downturn you get you lose your job is bad enough but if that means you can't pay all kinds of others that the pend on being repaid well then it spreads like a wildfire that's a bad sign also and finally mr trump has to have the finger pointed at him because he has disrupted the world trade system in the world with his aggressive tower of posturing and posing as undone world trade the i.m.f. last week told him that so he's made problem that another. i'm on top of the economic d

jason: specifically about the federal reserve and the excerpts in the magazine go to the heart of theionship, that sometimes uneasy relationship between the federal reserve and the white house. tell us what he experienced. christine: one of the stories is about him attending a meeting and williamy fowler mcchesney martin, who is famous for calling the fed's job is to take away the punchbowl before the party gets started. he witnessed johnson trying to influence the fed to prevent them from raising rates. he describes that in vivid detail. excerpt in detail when he was on the federal reserve himself. he had been reappointed by reagan in 1983. in 1984, an election year, volcker had a surprising experience. carol: let's describe it. because it is fascinating. it does not happen in the oval office. it happens in the library. walk us through. christine: volcker remembers being asked to see the president, not in the oval office, which he thought unusual and wondered why he was being summons to this library. -- summoned to this library. his memory was that he just saw reagan and baker, then

include size, international activity, short-term funding, proposal is scheduled for a vote by the federal reserverd on wednesday, chairman sunscreen here is set to testify before the joint economic committee on december 5 but will the federal reserve move on interest rates now in december. that would be the fourth rate hike the fed has said it would go forward but as we just teased coming into our final commercial break there were two mystery man we showed before we talk to the break. let us reveal their faces. president trump often takes aim at the feds to rome powell for the market's recent decline peter shift says both parties will be the one to blame when the recession he says we are about to see takes financial crisis of 2008 look like the roaring 20s by comparison. he is here and author of the real crash he joins us but in the spirit of fair and balanced the man in charge of the training group at td ameritrade executive vice president stephen cortes october volatilities and especially will be seen out in no way signals the end of the world. peter, to you first. why are you blaming both pres