>> i think he's going for follow up on yellen's comments.e marketplace that the fed does understand the situation and i also liked what yellen had to say where she's not going to wait to have a bad situation. they will anticipate that if perhaps will there looks like the situation is developing that's kind of negative, they will go ahead and do something. i suspect at this point in time that they will reinforce that situation twist is still in place. i don't think they will end at the end of june because we don't know what that that july employment number will be. but i think it's a little early for qe-3. but i think he'll echo janet yellen's comments that, hey, listen, we're sensitive to the problem. we look at different things. and we'll act ahead of what we think may be a really disappointing result. >> you call attention to a couple points here to be concerned about. one is a slowdown that we've seen in business investment spending and the other is this question as to whether corporate profits have peaked. >> well, i think both are key l

this kind of light that seems to have appeared between yellen and bernanke.ngly suggested she was inclined to do more. today the chairman much more equivocal. couple of theories, one she is more dovish and signaling a more public desire to move than the chairman is ready to do. i actually find that unlikely. she's very much a team player. and i would be very surprised if she didn't share the gist of what she was going to say with the chairman before she said it last night. what i think is going on is that the new information that the fed has, basically that shocker of an unemployment report on friday and the serious ruptures going on in europe, that's pretty new information. they haven't had the time to fully process what that means. and bernanke said as much during the kwa, q & a today. he said, look, employment numbers and staff are wrestling with this right now. given what i heard from yellen last night and the chairman today, i would put the odds they act in two week's time at little over 50%. exactly what they do is the interesting question. >> right. al

deflation and the money that the public has let's bring up their attempts to keep trying ok janet yellen who is the vice chair of the board of governors at the fed yes in a speech last night said that as she discussed this evening prolonging weakness in the housing sector remains one of the several serious headwinds they think the u.s. think. and in the end she says given these headwinds i believe that a highly accommodative monetary policy will be needed for quite some time to help the economy and so my question about these headwinds that housing are is this a headwind simply because it's about all the debt in housing that's dragging down the economy and houses are just the conduit for this borrowing binge. yeah it is it is this debt bubble dragging down the economy but what amazes me is that the people who are that are running the economy don't know anything about economics this head when you get a look at what created the wind ok the stock market crash back in two thousand and . ten created a very accommodative policy and basically pumped the goose the money supply and that caused the

although julia just pointed out maybe you should be paying more attention to yellen because bernanke was speaking in the lion's den. there has been a real move particularly in the currency markets based on some of these ideas, but right now they're still going with bernanke's word as the final and most important word and that's why the dollar is stronger against the euro. gold prices have come back a little bit this morning with the strength of the dollar and down about $10.70. $1577.30 an ounce. >> of course the european debt crisis seems to repaint biggest risk for the u.s. economy. joining us now from london is chief european economist from barclays. we talked about the story that reuters is reporting regarding spain and whether a bailout is coming this weekend. do you have any intel or view or either what's happening or what needs to happen there. >> itz's looking like lily we'le some information. these guys are having enough schedules and enough summits as it is without it needing them to give up another weekend on the telephone. so i think this shows that something is brewing.

vice chair janet yellen speaking will boston last might. take a listen. >> i'm convinced scope remains to provide further policy accommodation. >> citing risks from ongoing housing problem, a weak jobs market and worsening financial conditions. a number of other central bank officials will be out speaking today including lockhart, fisher, evans. a lot more than that. also beyond the fed heads, a few other economic events of mote today. at 8:30 a.m. eastern, we'll get you weekly jobless claims and this afternoon we'll get consumer credit. >> i thought there was one other fed official talking, too, today. >> yes, you saw me -- >> wasn't will one other one? >> there was one. >> why would we leave one out? >> i was so embarrassed about possibly getting will wrong. >> you were the one who said you can skip over names. >> what if it turns out he's the one that says like the most important stuff and people will go i didn't know he was talking. >> coche cota. i practiced it. i would consider naming that when naming the guy. there he is right there.

we're going to hear from vice chair yellen tonight in boston. bernanke tomorrow testifying before congress. carly, with that in mind, you just described this as kind of a question for europe. should the u.s. step up and fill that void that policymakers have left? >> must say that i'm not a big fan of further action on the fed's part and the reason i say that is because i don't think it's worked particularly well. yes, it has worked to boost the stock market temporarily. but every boost in the stock market that has resulted from the fed's action we now know has been fairly temporary. we're now, we basically erased all the gains the year on the stock market. i'm not sure operation twist or qe3 will do any good. the reality is that the u.s. faces some structural difficulties in our economy that's holding back growth. one of the most important of those is we have more small businesses failing and fewer starting right now than in the last 40 years. those small businesses are struggling with an incredibly complex tax code, a thicket of regulation. in

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the markets are disappointed bernanke wasn't as explicit as fed vice chairwoman janet yellen. yesterday she called straight out for the fed to take action. bernanke throwing a bit of cold water on that this morning. >>> meanwhile, linkedin says it's reset the passwords of every account victimized by a recent hack. if you can't log in, there will be instructions as to what to do. lots of jokes out there about the linkedin hack. it's very popular here in the bay area. but linkedin is less popular elsewhere. "the l.a. times" found some tweets, one said, if my linkedin profile was updated in the last four years, yes, it was hacked. another person said, i'm glad linkedin got hacked because at least somebody knows my password. back to you. >>> tensions escalating in syria this morning after u.n. monitors say they were shot at while trying to investigate reports of another massacre. secretary of state hillary clinton condemned the syrian government over reports of new civilian deaths. speaking in turkey where she is meeting can european, turk irk and arab partners, clinton says syria

third, two federal board reserve governors and vice chair yellen have hinted at additional action by the federal reserve. so based upon those three items and based upon your testimony, the basic question i have for you, is the federal reserve planning to take any additional action in the short-term to spur economic growth and create jobs? >> m chairman, first i think china and europe face rather different economic situations than we do. we obviously have to make our judgments based on what's happening here in the united states. looking forward to our meeting in about 10 or 11 days, i think the main question we have to address has to do with the likely strength ever the economy going forward. as i discussed in my testimony, the weakness in labor markets in the last couple of months may reflect the end of a catch-up period in which employers were offsetting the very sharp declines in employment that occurred during and after the recession. if that analysis is correct, then going forward in order to see continuesed improvement in employment and lower unemployment rate, we'll need to see

they're going to do but recently we've seen some regional fed presidents and i said governor janet yellen hinting that they would be on board for more easing which should raise concerns for people that think that this is a solution because what we've seen with this is a lot of unintended consequences without the benefit to the real economy that this was supposed to produce and that advocates of it are looking for it to produce it just has not produced the results that people are looking for and so people should have a real note of caution when they look to what the fed's doing but but did bernanke you say those magic words that everybody needed to hear today. it depends on what you want to hear of the guys if you're maybe you know want to trade on it and you're a traitor and a speculator then you were you know maybe looking for indication of what's going to happen that you didn't get but it depends on what you're looking for and the reality is you know he didn't give any game changing news today absolutely not but a lot of people would say that the. fed probably will act they probably wil

janet yellen, the deputy who live like a lot, one of the things we could do but we are not doing them, the economy is in terrible shape and we will not intend the inflation party and unemployment is way above what it should be. one reason we are not going to do anything and something is going on with a mixture of class interests in a subtle way to absorb -- absorbed by the board. put that in my article about ben bernanke didn't know what that meant. >> do you know what class interest meant? >> they didn't know what the word meant. and then -- the point is is not easy. one of the things we did, in long stretch of easing the burden will democrats could always do what is necessary which was wrong. when you have a crisis like we have now, monetary policy is not enough. you need the government to step in with spending but that doesn't mean -- particularly the fed similarly clearly would not start raising rates when the labor market might be strong enough to generate rate increases which is doing now. >> there is the major cognitive problem we face as progressive trying to explain why it is

the economy, immigration and the presidential race with cnn chief white house correspondent jessica yellen and matt bye of "the new york times" magazine. i'm candy crowley, and this is "state of the union." >>> there was a showdown of sorts this week. romney v. obama giving dueling economic speeches in ohio, a campaign hotspot if ever there was one. weakening economic growth following tightening polls, white house adviser said the president would use the speech to reframe his economic argument. he tied mitt romney tightly to george w. bush and outlined his goals. >> that's my vision for america. education, energy, innovation, infrastructure. >> flash back almost four years ago to the day, candidate barack obama. >> it's time for a competitiveness agenda built around education and energy, innovation and infrastructure. >> joining me now is white house senior adviser, david plouffe. david, thanks for being here. let me start with the first big question, which is is the fact that the president is saying virtually the same thing that he said four years ago when he was campaigning a recognition

janet yellen, the vice chairman of the fed, most economists, zandy to nobel laureate krugman, to morevement, particularly when you see the crisis in europe and downgrowth in china, 2% looks good. i think he's done a good job, mr. bernanke and hopefully he'll do everything he can to keep this economy moving and to support a fragile economy. >> i pose the same question to you. as carolyn put it, you got a shaky world economy, a fiscal cliff, anemic economy here at home. is it bernanke's per view? should he ease? >> no, q he-1 and qe-2 didn't work to produce the high. it gave us a sugar high in the stock market. it creates more uncertainty within the market. and again, i think the real problem is that we're facing this fiscal cliff that congress has not got its financial house in order. the president continues to talk about higher taxes on job creators, and now we've seen just this tsunami of red tape on businesses as well as his health care plan. i think there are limits to what monetary policy can do, and we've reached them. >> carolyn maloney, have we reached those limits? let me just

jessica yellen, she says neither president obama nor republican rival mitt romney are honest about the depth of the problem and their ability to arrive at a solution. john king is cnn's chief national correspondent, anchor of jkusa. he can read the political tea leaves like no one else can. i'm going to ask him if americans are better off today than they were four years ago and more importantly if they feel better off. will cane is a cnn contributor and a conservative who i think agrees cutting spending or raising taxes now are both the wrong thing to do. and ken rogoff is a former imf chief economist. he is the leading authority on financial crisis. we're going to start with you, ken. you're the expert. you made a career out of studying economic crisis around the world. i just laid out how i see this gathering storm. where am i wrong? >> well, you said you're normally an optimist. i'm normally pretty calm. i'm nervous now. you look at what is happening in europe f that blows up, there is nowhere to hide. we have hope it doesn't. there is not a sescertainty by means. there is instabili

. >> jessica yellen said earlier what would be great if mitt romney and barack obama were honest withing we are in for a rough long slog. in greece this is the reality. you're asking people with a 25% unemployment rate, 50% youth unemployment rate to take more cuts and there isn't an obvious light. why would they vote for greater austerity? >> greater austerity is one thing. also the reforms are another. the unions here have been resisting the reforms. the reality is, and this is quite interesting, that there is a productivity gap in greece. it's 40% between a greek worker and u.s. worker. it's about 29% between a greek worker and his breaththren hered the european union. they have low interest rates from germany. they had a structural boone because the european union money was coming into the country leading up to the olympics. between 2000 and 2007, this economy was booming, growing 4% to 5%. public spending was going up 40% to 45% a year. right now the payback is very, very painful. that's what the greeks are voting for now. do they go for more austerity or follow the euro line sta

and a lot of his partners have said this, janet yellen, a close ally last night in a speech made the case for more action from the federal reserve, central banks right now around the world are one of the few places that have the ability to inflate economies as well as to inflate stocks. and a lot of the world is waiting to hear, obviously, what ben bernanke will do. the european central bank took a different approach yesterday. their chairman said, we want policymakers to make the choices to actually secure europe for the future and we're going to take a backseat now and say policymaker, it's your turn to act. >> and they're encouraged by some things merkel is saying over there. >> they are. merkel, obviously, germany is one of the strongest economies in europe. germany right now is taking on europe's problems. in order to take them on, and agree to take them on, germany has to say to spain, portugal, ireland, greece, we're accept the way you behave, we'll accept your spending, and in turn we'll also help you and pay for your banks and your crisis. >> thanks. >>> president obama is w

here's our chief white house correspondent, jessica yellen. >> they're rivals, but they agree on onee last decade another try, then you should vote for mr. romney. >> if you think the president's right when he said the private sector is doing fine, well, then he's the guy to vote for. >> both men took to the battleground state of ohio with the president trying to reframe his economic message. >> of course the economy isn't where it needs to be. of course we have a lot more work to do. everybody knows that. the debate in this election is about how we grow faster and how we create more jobs and how we pay down our debt. that's the question facing the american voter. >> he said his opponent will roll back regulations on business, taxes on the wealthy and protections for consumers while he would invest in education, infrastructure and grow jobs that helped bolster the middle class. just 243 miles away his opponent drawing on his business cred took it to the president. >> talk to people you know that run a retail store or a small manufacturer and say, did president obama's policies help p

let's go straight to jessica yellen standing by with the details. >>> president obama hammered congress, telling them to pass his long stalled jobs bill as a way to cushion the u.s. from the effects of europe's worsening economy. but that's 23409 the part of his remarks that's making news. the president trying to regain control of his mess amg. >> if congress decides despite all that that they aren't going to do anything about this simply because it's an election year, then they should explain to the american people why. >> after disappointing jobs numbers drove unemployment up to 8.2%, he called on congress to pass the jobs bill he bruintrodd back in september. but he hit an offkeynote. >> the private sector is doing fine. >> republicans were quick to pounce. >> mr. president, take it from me, the private sector is not doing well. >> my question would be to the president, are you kidding? did he see the job numbers? >> here's the president in context. >> we've created 4.3 million jobs over the last 27 months. over 800,000 just this year alone. the private sector is doing fine. where we

jessica yellen is inside where the president will be speaking.f all, when candidate obama was the first go-around he touched on some of the same issues. what does he need to say to bring back the support or enhance support? get people to come out and vote. >> reporter: it is interest when the president last addressed this gathering. it was almost exactly four years ago. june 28, 2008, he was then a candidate. running for office and at that time then senator obama said that he was committed to bringing then illegal immigrants, 12 million illegal immigrants, out of the schad companies and said he would make that a priority from day one if he were elected president. and as you know, many in the latino community have been disappointed he did not make comprehensive immigration reform his top priority first year in office. instead he pursued health care reform as one of his very top challenges. more recently he went after -- tried to pursue the dream act that failed in congress and so he took executive action. we will hear him trumpeting that on the st

his second in command vice chair janet yellen saying in a speech she thinks it could either be bond purchases further extend i should say hiking interest rates. we'll keep watch on it today. back to you. >> we'll be listening for those comments. mary thompson, thanks so much. >>> new reports this morning of yet another massacre in syria. we have the latest now from cairo cairo. good morning. >> reporter: activists inside and outside syria say the village witnessed about 250 residents in that village, 100 of them were killed, many of them at close range, executed by government supporters. meanwhile, the diplomatic efforts continue to stall. secretary of state hillary clinton in turkey trying to bring together arab and european allies to prop up the syrian opposition. they're holding a meeting later in the month of june to try and get some support to the syrian opposition, ordering or carrying out rather attacks inside syria. natalie? >> reporter: eamon reporting from cairo, thank you. >>> u.s. defense secretary leon panetta is in afghanistan this morning amid a recent upswing in violence. this

and before bernanke's speech on thursday, janet yellen will and you can in boston. so we'll get some indication of where they're going. but they're in a hard situation. important thing to look at is what happens to their forecasts. are there forecasts coming down significantly. and it's not clear that they're coming down must have to warrant another all in move. but they have to be talking about it. the data looking worse. and they keep saying they want to see progress on bringing unemployment down. there's a lot of cross currents. and they have to make a judgment about whether progress has stalled. and they might not the have enough poinformation. >> so you think it may be another month before we know? >> it could take some itime.un . what the phone calls ben is making every die dray to draghi others. >> they talk to each other and i think the fed and treasury are really frustrated. not so much with draghi. they like draghi because he's cut from the same mold. he's an m.i.t. economist just like bernanke. he sees the world the sale way. but it's a very hard politica

- if you look at for example the last statement that the fed made in april, if you look at janet yellen'stement and chairman bernanke's statement they've seen an economy, domestic economy that's doing moderately well although some risks and the risks are to europe. if you folks have covered very well what happened in greece did not resolve knigit just eliminated some of the potential down side risk exposures. if the fed does something dramatic it would seem it would be in this meeting. >> one thing we said, mark and i'll get to greg, is that we're trying to justify or at least give the europeans the benefit of the doubt on this kicking of the can strategy. we're hoping that they think if they can create more time then maybe things in italy and spain they can sort of work things out there but then i realize if spain's economy is this bad and bank assets continue to deteriorate what good is buying time if three months from now things are worse in their banking situation than they are now. is this a viable strategy where they are buying time and things improve over time or things get worse?