is the fed fully enforcing the volcker rule based on congressional intent? chair powell: absolutely. more broadly, i would completely agree that our job is to maintain the strength of these large financial institutions so that we never have to worry about bailing them out again. i am strongly committed to that. we need them to be very strong so they can perform the roles that they are supposed to perform, even in a severe crisis. i think they buy in large did, admittedly with a lot of fiscal support and a lot of monetary support, too. we can always do better, but i am committed to that. sen. tillis: thank you. i've got to beat the inflation drama for just a minute here. the fomc members insist inflation is transitory, but it hasn't inspired a lot of confidence in me. there was a statement, a couple of statements by president mary daly in february, when she declared the pressures on inflation are downward. in may, she said the higher inflation readings would mean 2.4% to 2.6%. in june, she was predicting that inflation could go above 3%, and despite months of

they're not ready. curt volcker and metro met run and thank you to for watching. you can see this and all of our previous programs. again, anytime by visiting our website, al jazeera dot com, and for further discussion, go to our facebook page at facebook dot com forward slash ha, inside story. you can also join the conversation on twitter. our handle is at a g inside story for me, how much room in the whole team here piper. now? the news news news news ah, welcome to portal. your gateway to the very best to volunteer there. an online content that you may have met. a new program that this for our platforms makes a connection and present a digestible, seeing each the award winning online content on their audience portal with me founder gotten on to 0 me on counting the costs out, salvador legalizes, bitcoin, what it proved to be an economic bonanza for the latin american country, but when it become a guy paradigm, europe, i watering tech valuations raised bubble fears. plus lambda gainey go to electric county, the cough on al jazeera when a war crime is committed,

they're not ready. curt volcker and metro met ron and thank you to for watching. you can see this and all of our previous programs again, any time by visiting our website al jazeera dot com, and for further discussion, go to our facebook page at facebook dot com, forward slash ha, inside story. you can also join the conversation on twitter. our handle is at a g inside story. for me, how much i'm doing the whole team here piper now. the a football from spain traded battling opponents on the biking, fascism at home and abroad. footballing legend edit canton introduces up the nino in the battle. a wanting to use the beloved game to help himself and others survive the horrors of a natural concentration. i. what bone rebels on al jazeera, an extra judicial killing, and a north african capital. i had someone breaking into a house. i heard people shouting so full masked men, but not only the eyes and hair was showing al jazeera willed, his red eye, witness accounts of the dramatic story of the assassination of major p l. o. figure kelly was here in a secret israeli opera

to very high mid genes to form some resistance or to create some scarcity we have had since paul volcker, in the age of margaret thatcher and ronald reagan in the area of deregulation. this runaway derivative growth that has created what's called a shadow banking system is not accountable to anybody. and periodically you'll have crashes, and that's where the resistance comes in. whether it's the crash of $87.00, the bond crash of $93.00, the subprime crisis of 2008, et cetera. that's where the resistance is even ground. alan greenspan said that fed policies don't try to manage the economy. it's merely there to clean up the mess after the crashes, which is what he said. but this idea of creating artificial shortages are artificial. scarcity in you could encapsulate that in the work of milton friedman in the monitors school out of the chicago school of economics. that has now i think come to the absolute screeching halt. we now have run away inflation from decades of money printing and the bodies are now surfacing. they can't bury the bodies, they can't hide or any more. there's no more ha

to very high mid chains to form some resistance or to create some scarcity we have had since paul volcker, in the age of margaret thatcher and ronald reagan in the area of deregulation. this runaway derivative growth that has created what's called the shadow banking system is not accountable to anybody. and periodically you'll have crashes, and that's where the resistance comes in. whether it's the crash of $87.00, the bond crash of $93.00, the subprime crisis of 2008, et cetera. that's where the resistance says uneven ground. alan greenspan said that fed policies don't try to manage the economy. it's merely there to clean up the mass after the crisis, which is what he said. but this idea of creating artificial shortages are artificial. scarcity in you could encapsulate that in the work of milton friedman in the monitors school out of the chicago school of economics. that has now i think come to the absolute screeching halt. we now have run away inflation from decades of money printing and the bodies are now surfacing. they can't bury the bodies, they can't hide any more. there's no more

what paul volcker did was he contracted the monetary base which allowed the money supply, and we had,e in the supply of goods and services. and if we have less money and more goods, that's going to start controlling inflation. that's exactly what we did back then. by the way, you were a young pup back then, but that's what we did to bring things under control. they don't have these tools now. they're not lowering tax rates, and the fed has no constraints whatsoever on its operations. so i don't see anything in the policy mix that would cause inflation to stop if it were to ever start really and truly. i just don't see it. now, there is one other indicator that indicates inflation is rising a little bit. if you take the 10-year bond yield and you subtract out the tips yield, you get the expected inflation. and that has been rising somewhat over the recent past. so it's not as though there's no indicators of inflation, but the true ones, test rates, gold, dollar, foreign exchanges, they haven't shown it yet, but there is some in measured prices, clearly. neil: i wish i was a young pup.

we were heading towards some nasty inflation that paul volcker at the fed eventually had to break thedouble-dip recession. i think the fed needs to be cognizant not where the 10-year bond yield is today but what, continuing to push all this stimulus into the economy is going to produce tomorrow. charles: yeah. everyone's firing on all cylinders. danielle, always appreciate it. thank you so much. >> thank you, charles. charles: from this point wall street's blackstone and blackrock and all these other entities, they're snapping up all the private homes in this country and the prices are going through the roof. what happens when the housing boom comes to an end? could it artificially come to an end? we have rick sharga. he and i will hash this out. we'll be right back. ♪. only 6% of us retail businesses have a black owner. that needs to change. so, i did something. i created a black business accelerator at amazon. and now we have a program that's dedicated to making tomorrow a better day for black businesses. ♪ ♪ i am tiffany. and this is just the beginning. ♪ ♪ in business, it's never

. >> that's the only way -- you and i are old enough to remember paul volcker.got rid of inflation but it was a shock. charlie, thanks for reminding me how old we are. this does not apply to you, tiana. thanks very much. and all of these texas legislators that bolted texas right now they're being greeted as rock stars in our nation's capitol. but whatever your politics, ask yourself why? they left their job. they bolted from their job. is that brave? after this. subway®... has so much new they couldn't fit it in their last ad. so, we're gonna use picture in picture in picture in picture in picture in picture in picture in picture in pict- man, you get the idea! there's so much new at subway®, it's too much to fit in all these pictures in pictures in- as i observe investors balance risk and reward, there's so much new at subway®, i see one element securing portfolios, time after time. gold. your strategic advantage. priceline works with top hotels, to save you up to 60%. these are all great. and when you get a big deal... you feel like a big deal. ♪♪ priceline. e

the volcker rule.t works like glass-steagall lite to separate commercial banking from wall street risk-taking. in 2019, you accepted -- exempted more short-term trading holdings from roles so banks could take on more risk. that weakened the world. in 2020, you eased up the roast to let --rules to let banks invest in hedge funds. the full corolla got weaker again appear to let me ask. during the past four years, has the fed done anything to make the bulk of rules stronger and limit risky trading for the longest -- largest banks? chm. powell: by clarifying it, we made it more effective that what is it supposed to do -- what it is supposed to do. sen. warren: it's about whether you made it stronger not just clearer. it is whether you made it stronger or harder to engage in speculative trading. the answer is no. i have highlighted two examples of weakening regulations. there are more. producing capital requirements. easing liquidity requirements. shrinking bond requirements. killing back on supervision wit

and then we have just farmers going out of business because volcker used a sledgehammer and he probably had to use it because there wasn't a gentle way of doing t. unfortunately, instead of taking inflation seriously, the current administration appears intense -- intent on stoking its flames, pouring gasoline on the inflation fire. in his budget the president proposes government spending and debt at levels previously only seen temporarily during war or economic recession. the nonpartisan congressional budget office and economists surveyed by "the wall street journal," both recently raised their inflation expectations. c.b.o. raised its inflation projections because, quote, output now exceeds its potential level sooner and by larger amounts than previously anticipated. end quote. output exceeding its potential is economic speak for the economy to start to overheat. consumer price data released yesterday shows inflation heating up. in june prices climbed 5% and 4% over the prior year compared to 5% in may. moreover, corn inflation which omits volatile food and energy goods rose at the hig

and we kept pushing, and eventually in congress the volcker rule was brought to life. and then we started partnering and trying to prevent the rule making from tearing it down, and carl would call me up and say here's what's happening. what are we going to do? and we would write a letter, and we would call the regulators, and we would kvaalry -- rally fellow senators. he just kept at it like a dog with a bone. he was not going to let go. he was tenacious, saying this matters, every piece of it matters. we're going to get this done. and so when we think about the fact that that wall street casino no longer threatens the american economy because it no longer operates as it did, we have senator carl levin to thank for that. there is so much more he did here, and colleagues have been speaking to other chapters of his work, but this is the chapter i was involved in. i think it says so much about who he was. his policy expertise, his humble approach to the fight, his willingness to take on powerful actors, that's truly what it is to be a public servant. i wish carl was here