chair yellen: yes. your last appearance before this committee, i expressed my concern about the treatment of cleared margins under the leverage ratio. it diminishes clearing options for customers while requiring them to pay more. i applaud the treasury department's policies to offset for centrally cleared margin under the leverage to ratio, and offset would have an insignificant amount on bank while raising -- while bringing down. is expected to offer an offset for the sake of clearing customers in the u.s., i hope the federal reserve will follow suit to adopt an offset for u.s. firms. chair yellen: the leverage ratio may be having unintended consequences and it is something that we should look at very carefully and committed to doing that. >> on a similar note, on june 22, the federal reserve testified "we believe the leverage ratio is an important backstop to the risk-based capital framework, but it is important to get the calibration and the risk-based requirements right in doing so to mitigate marke

chair yellen. in may, the overall unemployment year low.3% hit a 16 although the unemployment rate rose 1/10 of 1% in june, this reflected the positive news that more workers who had dropped out of the labor force had returned to look for work. when the overall rate of employment now down at historically low levels, would you say that the economy has reached full employment, or do you believe that this headline rate masks weakness in the labor market where additional progress must be made? chair yellen: so, not all groups in the labor market are faring equally well. about,remain concerned particularly for african-americans and hispanics, weaker job market outcomes. policy is a blunt tool. as you point out, the unemployment rate and overall rate of the labor market is strong with many job openings workers.tunities for the unemployment rate is slightly below levels that my colleagues would regard as sustainable in the longer run. rate foreen a steady several years now. constant rate of labor force pa

chairwoman yellen, welcome back. we welcome the decision, the announced intentions of the fed reducingthe process of the size of its oversized portfolio. but in terms of the plan and in terms of portfolio composition and balance sheet normalization, why does your plan contemplate rolling off treasury securities at a faster pace than mortgage bonds? chairman yellen: so, the differences are relatively slight. my expectation is, although one can't be certain of what the prepayments of principal will be on mortgage backed securities, that ultimately our caps on our reinvestment of mortgage backed securities will not be binding. that they will only come into play in exceptional circumstances. so once we phased in those caps i don't expect them to be binding. the treasury market is very deep in liquid. it's a huge market. we're -- our intention in gradually phasing up these caps is to avoid disruption. mr. barr: this gets to the credit allocation. on feds use of interest reserves as a monetary policy tool. banks one and a

yellen: ok. so let me start by saying the very beginning of our policy on fmoc external communications states the two-way communications between members of the committee and members of the public are very important, both to communicate with the public and also to gain information and that these will occur in a variety of ways, including in some closed door meetings. so there is no requirement that fmoc members cannot meet in closed door sessions. the brookings institution is not a for-profit institution. it's a nonprofit and we have a clear set of guidelines governing what can and cannot happen in -- mrs. wagner: will the remarks be released to the public? ms. yellen: so the clear rules hat no fmoc confidential information can be divunged ever, including in -- divunged ever in a closed door setting and that fmoc officials may not discuss even their own views on policy except to the extent they have already been presented in a public forum. the vice chair's remarks did not pertain to monetary poli

good afternoon, chair yellen. chair yellen -- if it's independent of politics? >> yes, i do. >> well, in that light does your opinion about monitor policy independence also extend to independencindependent conditiol politics? >> distribution politics? i think the fed should be nonpolitical. >> yes, ma'am. well, i reviewed some of your speeches since last march. i didn't see a lot melted to monitor policy. i did see one speech where you appeared before a community development research conference, and it was a on creating quote a just economy.u and a conference you also spoke at on women at the brown university, the monetary policy was mentioned only one time in that speech and the reference was in context of explaining why monetary policy is poorly equipped to address quote pockets of persistently high unemployment. it just appears that the speeches represent efforts to address social issues in a way that establishes the limits of sound monetary policy. do you also worry that these in the same way exposes monitor policy to increase risk from distributional politi

chair yellen: thank you. member andanking other members of the committee, i'm pleased to present the federal reserve's semiannual monetary policy report to the congress. i will briefly discuss the current economic situation and outlook before turning to monetary policy. since my appearance before this committee in february, the market has continued to strengthen. job gains have averaged 180,000 per month so far this year, down only slightly from the average in 2016 and still well above the on averagefficient to provide jobs for new entrants to the labor force. the unemployment rate has fallen .25% since the start of the year. 5.5% below its peak in 2010 and modestly below the median of federal open market committee participants' estimates of its normal level. the labor force participation rate has changed a little on that this year. another indication of improving conditions in the jobs market given the demographically driven downward trend in this series. this includes workers marginally attached to the labo

why is this so important to janet yellen. and when i asked you during the commercial break, we are not sure. jim: pressed for it when she was president of the san francisco federal reserve bank. this number is tacked up on the wall as if it were handed down from on high. 1965, there was not one year in which the rate of inflation reached 2%. 70 basis points. .7%. so now days that would be the grounds for kinds of a panic, right? deflation, 1930s. so what is it that changed? for one thing we are more encumbered more debt. they think we need inflation to help us pay our debts. but we never say that. it's the intellectual dishonesty of this monetary policy that most rankles me. maria: we are out of the throes of the recession, the financial upset of almost 10 years ago. but the economy is not doing all that great. look at gdp. 1.5% on average. tax receipts down. do you think there is a risk things slow down as the fed accelerates this? >> yes, i think there is a big risk. janet yellen in her testimony this past week and the docu

here a lessers hawkish janet yellen? uncertainty gradual rate hikes, like she always does. let's look at a chart together, showing the [indiscernible] doing one more rate hike this year is not so strong. we will see from this chart the odds looking at the september rate hike, the december rate hike, they have gradually come down. you can see again, there it is, for the december hike, it is up around 45%. for september it is down to 13%. today, aeige book out survey of the 12 district banks, saying labor markets are targeted. put it all together. the that is talking about raising rates, could that be perhaps white people are -- why people are getting bearish? >> it's sort of blows me away. they are tightening. they have been tightening since early 2015, when they started hinting they would do it, pushing the market to do it for them. we have had interest rates come from zero, a substantial increase. >> the natural neutral rate could be lower than the fed, that would signal fewer rate hikes down the road. it does not chang

jonathan: chair yellen goes low fed lights of fuse. president trump lands in paris presidentd emboldened macron. unveiling a landmark law taking britain out of the european union. i am jonathan ferro alongside david westin. we get you up to speed. 1% ons up a by 1/10 of the s&p 500 after a high on yesterday's session. euro-dollar retreating down .2%. yields up on the 10 year. at 8:30 a.m. we will get u.s. economic data for jobless claims in the consumer price index. of janet second day yellen testimony, this time to banking committee. at 11:00, the u.s. congressional budget office will announce the fiscal year 2018 urgent in washington. president trump will hold a joint news conference with president macron in paris. jonathan: from talk to dove. -- hawk to dove. committeden: we are to obtaining our 2% objective and are aware for a number of years we have been running under that and recognize there are dangers that would be associated with persistent undershoots of our inflation objective. it is 2% is not a ceiling, it is a metric objec

-- chair yellen: ok. >> do you believe that you have the ability to usurp the laws -- chair yellen: we are not usurping the loss. we make sure companies are in a safe and sound fashion. >> the state has lost relative to the -- laws relative to the corporate boards, do you believe your power to usurp? chair yellen: congress has passed laws that places obligations on us to provide these financial institutions. >> my time has run out. >> the chair yields from the general -- gentleman from arkansas. >> thank you. chair yellen, nice to see you here looking fit and rested from all your travels. thank you for your perseverance in front of us. we have talked before about the monetary policy and i have not been a fan before i was in congress of going beyond the said's initiative -- fed's policy. i felt like q1, q2 and q3 do not create the job increases that policymakers at the time thought. i have been concerned as we go back and look backwards since 2008 that said officials have always been a little reluctant to talk about some of the unintended consequences such as a distorting the price mech

two of theinates day janet yellen's testimony.vonne: fizzling out as investors await earnings data. retreating from another overseas market. admitting defeat on the russian front. yvonne: meeting in beijing to risk.n overheating and shadow marketing top the agenda. in newi am betty liu york. it is just after 7:00 p.m. yvonne: it is just after 7:00 a.m. in hong kong. it seems markets are taking it as steady as she goes. you can also argue she came up more hawkish the first day. it was still too early to conclude inflation was well short of that 2% target. we did see bond markets reverse. betty: one thing we did come away from these last two days, is that the fed is watching inflation. it is something they are on high alert about in terms of whether they are going to hike rates again or gradually delay that. i do not know if this was a jab or not, when she was asked a question about donald trump's growth target she said 3% growth would be great, but challenging. i want to pull up this chart for our viewers. much making how america g

yellen comments stirring some anxiety about the lack of inflation. we'll get that report on friday here in the united states. dax up 0.3%, strong session for france as president trump heads to paris you can see the french equityie deks up. and the spain ibex up 1% >>> and international energy agency is raising its forecast for the year iea says opec's compliance with production cuts fell to a six month low in june as several members pumped more oil than allowed by their supply deal oil prices slipping a bit today slipping down around about half a percent, but they did gain 1% yesterday and of course a better week this week than last dollar board is interesting love the dovish comments suggesting less hikes needed did actually see the dollar gain across the broad index up one tenth of 1%, but we saw bigger moves yechbs t against the euro and yen the pound, 1.2928. aussie dollar also stronger. gold prices just to on round things off gained 0.4%. 1220 the price of gold >> and yesterday a clear indication of how when janet yellen speak, wall street liste

the market is waiting for yellen. on what yellen tells us today, that is what will end up moving markets by march. we are waiting for the fed to opine on what is going on. it is below consensus but appropriately so. >> i think the trade is still on and people will look at equity markets. >> have we seen a rereading in the market that makes you not want to go by equities? asking if i think we will see a large-scale move, i don't think so. our expectation is very similar to yours. we are range bound. >> where does the bond market get its cue from? >> looking forward, most market participants generally understand with the ecb is about. there are more questions about how the bank of england will approach things. the bank of japan is an left have pushed back against the rise of the government bond yields. the fed will be important if you do not get the hike at the end of the year, not what we are expecting, but if we don't get it, it will have a big impact on bond -- on bond markets as well. >> how much is it because money

trade, how is that yellen playing out?hie: rising, asian bonds and gold sliding given janet yellen's more hawkish comments, saying inflation is a two-sided risk, gold down .1%, but equities driving the momentum, driving the benchmark to the best week since march. the taiex the only outlier, down .2%. aussierency space, the the best g 10 performer going strength to strength above $.75. at 113.54,ding helping the nikkei 225. the singaporean dollar losing ground despite the rebound in gdp for the second quarter and the drop for the won is extending. the taiwanese dollar extending its climb after extending the most in three months on thursday. its recent strength has been a pain for exporters, so the taiex is down. falling .5% after its third-quarter sales forecasts came in short of estimates, a second consecutive miss ahead of the 10th anniversary of the iphone do in the fall. mc's biggest customer. the stock has gained 18% this year, and it did hit a record in june, so this has helped turn the founder into a billionaire at t

. >> yellen in congress. the fed chair faces the semiannual grilling from lawmakers, seeking to reconcile a strong jobs market and low inflation. >> and the hawks circle. canada will join the u.s. in raising interest rates. to the fired fuel of global tightening? >> a very warm welcome to the program. this is "bloomberg daybreak: europe," our flagship morning show. i'm anna edwards. manus: i'm manus cranny. we have a pack show 40. we have the bank of cyprus ceo here with us. post,""the washington says a category five visiting the white house. a 94% probability of a rate hike. dollar, up she goes, which is the canadian dollar against the yen. the bank of canada will indeed go ahead and raise rates. the risk on the other side is janet yellen and her testimony in front of congress. anna: the markets are divided between what is happening in the white house, the latest from trump junior, and the central banking story. this canada story does add to this, but how much of this is an idiosyncratic canada story? that,

gary cohn is leading candidate to replace janet yellen. source yous say that the job is kohn oig's if he decides he wants it he would be the first federal dhar in four decades who isn't an economist cohn is also mentioned as a potential future white house chief of staff clearly the man getting good traction within the white house, but this would definitely ruffle some feathers within the fed because of the lack of hardcore economist back be grugrounbackgd he is seen previous ofly being a democrat more than a republican. >> let's stick with the fed because janet yellen is headed to capitol hill today to testify before the house financial services ghitsicommittee. and we'll get the fed's latest read on the economy when the central bank releases its monthly beige book report at 2:00 p.m >>> christine lagarde doesn't agree with some xhechbcomments yellen made. >> i wouldn't exclude that there may one day be another crisis. where it will come from, what form it takes, how international and broad based it will be is to be seen. and typically the

lots more to discuss on janet yellen's upcoming testimony.next guest is watching for any additional details on balance sheet reduction. we have more with state street global markets in a moment. plus, cautious on stocks, but planning to him by more unlisted assets. this is bloomberg. ♪ ♪ haidi: this is "bloomberg markets: asia." i am haidi lun in sydney. inhaad: i am rishaad salamat hong kong. investors looking for some clarification over the balance andt reduction rate increases when janet yellen testifies. joining us now is the global macro strategist at state street global markets. are we going to get anything new? >> i don't think so. we have the june fomc minutes. there was only one interesting data, the labor market data. yes, labor market numbers are .ood we have seen payroll numbers around 180,000. the bad part is inflationary growth transition area? even wage growth has been a weak story. what we will see is how the fed and janet yellen will manage this dual mandate. a lot of people will focus on that first. the second thing is the b

bernanke/yellen party, the bernanke/are ye bernanke/yellen punch bowl you want more, there could be someone better than those two in terms keeg t termses juicing all your markets making you look smart? how can there be a better more accommodative, more let the good times roll more don't take our medicine type -- >> because gary had a seat at the table in 2008 and understood in the world that we were in at that moment how to survivor, how to get out of it he navigated gold man sax through it again, he's credible he's an excellent joyce, he's a student of the markets he understands the markets and i would trust and i think the markets would trust that he will make the right decisions. >> you better be careful what you wish for because he might take away the punch bowl >> if he takes away the punch bowl, then i have confidence that he's doing it because the metrics of the economy suggest it's time do it. >> sometimes you have to take your medicine. three, four years ago they talked abo talked about tightening what the traders would do they were big babies keep giving me my drugs. >> it was the

this is a chart for char air yellen. on the article with gary cohn from the white house is a future fed chairman. this is the lollipop chart, two year yield. we have this up, up, up move in yields. is this escape velocity? here,reach this curve up here is the next meeting, and here is where we might have a new fed chairman. that gives you a graphic of the two year yield and chair yellen. guy: one of the more interesting decisions today comes from canada. tom: yes. guy: we will be paying attention to this throughout the day. we have seen the cab gaining serious traction. but the market is still nervous about this. thise short going into decision. there is interesting marketing positioning going on here. this blue line shows you the risk reversals and this is the one week in the white. the skew favors coal. not everybody is completely convinced that the bank of canada is going to deliver later on and if it doesn't, you will be a massive market reaction. guy: i want to bring my bloomberg global audience into what we are obs

let's talk about today's news with chair yellen.ot of the discussion today she isfocused on how doing at her job and whether she will be back, where the she will serve another term. from your perspective, and you think she deserves to get another re-up at the fed? guest: they really has not been too many changes of policy on her part since you have had a new administration come in. for the nature of the conversation she is having directly with the administration and what her vision would be for 2018 and beyond. but i think the committee members asking her what her plans are, what her asks might be, and her answers were all very telling. see whateel it out and she is thinking or what her interests might be. if i had to guess i would say in 2018 there will be a new chair, but who knows. we will see. as far as some of the items that were discussed, you have a lot of members of the house financial services committee eager to see the multi-trillion dollar balance sheet, to be rounded down, the cleanup, invest in in treasury bonds. from t

at this point the irony could be janet yellen could be most likely successor to janet yellen. maria: she doesn't have to step down. >> the president i think has indicated there is an uneasy peace between the two. i don't know if they are b.f.f.s. but a truce has been declared and they are kind of on the same page now. so i think that would be good for market continuity. i think you have to have someone -- obviously she is very well qualified. she is a very dovish person. maria: more "wall street week" right after this. >> announcer: fed chair janet yellen has investors in a tissy. but does another fed chair agree this time? alan greenspan joins "wall street week" next. so we need tablets installed... with the menu app ready to roll. in 12 weeks. yeah. ♪ ♪ the world of fast food is being changed by faster networks. ♪ ♪ data, applications, customer experience. ♪ ♪ which is why comcast business delivers consistent network performance and speed across all your locations. fast connections everywhere. that's how you outmaneuver. i did active duty 11 years.my in july of '98. and two

at this point the irony could be janet yellen could be most likely successor to janet yellen. maria: she doesn't have to step down. >> the president i think has indicated there is an uneasy peace between the two. i don't know if they are b.f.f.s. but a truce has been declared and they are kind of on the same page now. so i think that would be good for market continuity. i think you have to have someone -- obviously she is very well qualified. she is a very dovish person. maria: more "wall street week" right after this. >> announcer: fed chair janet yellen has investors in a tissy. but does another fed chair agree this time? alan greenspan joins "wall street week" next. >> we have been in an economy with low interest rates for some time. asset valuations are somewhat rich if you use some traditional metrics like earnings ratios. but i wouldn't try to comment on appropriate valuations and those ratios. maria: that was senate federal reserve chairman janet yellen saying low interest rates led to rich asset valuations. >> clearly sustained low inflation implies less uncertainty ab

you will have janet yellen testimony in the puss. >> you will be looking for inflation and yellen's testimony. on friday.t number we have cpi coming out. problem is the details has been weak. one orat you only seen two areas of strength. disconcertingre for the feds. they're betting a lot of all this unemployment that they've about is going to translate into inflation before they seen it. they're getting the markets ready for a hike. we don't have evidence of that. alix: temporary. times are we going to hear that? exactly. david: peter, look at the fundamentals. it really is inflation. what are the fundamentals that will drive inflation. it's been getting softer here a little bit. at the same time, we're employing more people and we more dollars to spend. >> you're right. outink there's other voices there that should have waited until you see the inflation indeed. if you look carefully with the market is pricing, the markets clearly, thery medium term inflation picture is bleak. point, we need to see vast changes. changing, bond yields are going up,ing on thing that's moving is real interest

chair yellen, let me talk. you and i have had ongoing -- it's about, of course, the high unemployment rate of young african-americans. and i always remember fondly when you referred to that as a blunt instrument. as i said, that's what "m" said to james bond to describe him. in other words, he couldn't go through it. so, you said that congress had to come up with some legislation. we did that. house 51 and 52 of which we sent a copy to you, which, you know, which would tie african-americans staggering unemployment rate of staggering african-american young men to training programs attached to rebuilding the crumbling infrastructure. that has been introduced. and, of course, each five years we have to by law fund the 1890s african-american colleges. so we put $95 million in the appropriations, hopefully, that we'll be able to sped over five years of $5 million for each of these universities over that period. now, i read your past reports that you have given, and you have talked about how -- and we would like to m

. -- fed chair janet yellen the fed says it is transitory, janet yellen says it is premature, with thend falling short. loading up on risky assets. dominating the recent junk-bond issues. we begin with a big issue, inflation data injects some doubt into the fed's next move. chair yellen: we are very focused on trying to bring inflation up to our 2% objective. >> the fed is expected to hike rates in december and if inflation does not move back to there 2% target, they will have a pretty healthy debate about that. >> whether or not we get a hike in december depends on where the inflation data goes. on our forecast, inflation will be flat between now and the end of the year. if that is the case, they will not hike. >> the combination of low inflation with slow growth will mean everything goes slowly. and like i said, they may never get to the point they are telling you that they will get. victory to hand it off to the next fed chairman, the rate even with inflation. >> the inflation numbers are probably not going to derail a fed hike this year. what comes first, the balance sheet reductio

like of conviction in yellen's comments on inflation.lar index down for a fourth day hitting a low since september. what i wanted to show you was the one month in a quite and one week in loop. .- blue that has moderated slightly in today's session. the dollar has ended here. anna: the head of qatar's biggest bank and the gulf's artist lender remains optimistic it can grow despite the geopolitical situation and even if qatar's isolation continues. manus: an exclusive interview with yousef, he asked how he was going to refine his strategy to adjust to what is happening in saudi arabia. >> we have a plan for the end of the year for 6-8%. we do not see changes from that level. station.ll diversified working and helping to overcome the crisis. yousef: the last time we spoke you were bullish in terms of your expansion into asia and africa. where the gulf crisis to be more aggressive come up push harder into those markets? strategy is among middle east, africa, and asia. we don't see any change. recap, a corning -- our existing network. we are

at this point the irony could be janet yellen could be most likely successor to janet yellen. maria: she doesn't have to step down. >> the president i think has indicated there is an uneasy peace between the two. i don't know if they are b.f.f.s. but a truce has been declared and they are kind of on the same page now. so i think that would be good for market continuity. i think you have to have someone -- obviously she is very well qualified. she is a very dovish person. maria: more "wall street week" right after this. >> announcer: fed chair janet yellen has investors in a tissy. but does another fed chair agree this time? alan greenspan joins "wall street week" next. this is my new best friend, esther. she might look like any normal, playful puppy but esther's being raised to become a canine companions for independence assistance dog for a person with a disability. to get there, she needs lots of loving care and attention, plenty of exercise and good eating habits so that she can live a long and healthy life for her future family. visit cci.org or call 1-800-572-bark. raise

janet yellen takes questions on capitol hill.answer investor questions with earnings reports. >> it is almost an embarrassment being an american citizen traveling around the world and listening to the stupid -- we have to deal with in this country. nejra: central bank official share exclusive insight into monetary policy. >> at that low level you would have historically seen more inflation pressures. we are not. >> as long as necessary, we will implement

chairman afternoon, chair yellen. chair yellen, do you subscribe to the theory that [ inaudible ] can work better if it's independent of politics? >> yes, i do >> well, in that light, does your opinion about monetary policy independence also extend to independence from distributional politics? >> distributional politics i think the fed should be nonpolitical >> yes, ma'am. well, i have reviewed some of your speeches since last march i didn't see a lot relative to monetary policy. i did see one speech where you appeared before a community development research conference and it was a conference on creating quote, a just economy, and the conference you also spoke at on women at the brown university, the monetary policy was mentioned only one time in that speech and that reference was in context of explaining why monetary policy is poorly equipped to address quote, pockets of persistently high unemployment it just appears that these speeches represent efforts to address social issues in a way that establishes the limits o

at this point the irony could be janet yellen could be most likely successor to janet yellen. maria: she doesn't have to step down. >> the president i think has indicated there is an uneasy peace between the two. i don't know if they are b.f.f.s. but a truce has been declared and they are kind of on the same page now. so i think that would be good for market continuity. i think you have to have someone -- obviously she is very well qualified. she is a very dovish person. maria: more "wall street week" right after this. >> announcer: fed chair janet yellen has investors in a tissy. but does another fed chair agree this time? alan greenspan joins "wall street week" next. liberty mutual stood with us when a fire destroyed the living room. we were able to replace everything in it. liberty did what? liberty mutual paid to replace all of our property that was damaged. and we didn't have to touch our savings. yeah, our insurance won't do that. well, there goes my boat. you can leave worry behind when liberty stands with you™. liberty stands with you™. liberty mutual insurance. so new

at this point the irony could be janet yellen could be most likely successor to janet yellen. maria: she doesn't have to step down. >> the president i think has indicated there is an uneasy peace between the two. i don't know if they are b.f.f.s. but a truce has been declared and they are kind of on the same page now. so i think that would be good for market continuity. i think you have to have someone -- obviously she is very well qualified. she is a very dovish person. maria: more "wall street week" right after this. >> announcer: fed chair janet yellen has investors in a tissy. but does another fed chair agree this time? alan greenspan joins "wall street week" next. here's something we bet you didn't know. nearly half of all cancers can be prevented. that's right -- half. nearly fifty percent. mostly by making small, everyday changes in your diet and controlling your weight. walking more, eating less. and eating foods that help you and your family to seriously reduce the risk of cancer. and of course, by not smoking. visit the cancer prevention, together we can website and

but yellen added that the u.s. economy warranted a gradual rise in rates the fed chair said 2% inflation is still the target and the fomc is monitoring the situation closely. >> it's premature to reach the judgment that we're not on the path to 2% inflation over the next couple of years as we indicate in our statement, it's something that we're watching closely considering the risks around the inflation outlook. we need to make some adjustment as long as our forecast is that we are headed back to 2% about that. >> she was also asked about the health of the u.s. economy and how it will impact the path and timing of rate normalization >> the committee continues to expect that the evolution of the economy will warrant gradual increases in the federal funds rate over time to chaefr and ma achieve and maintain maximum employment and stable prices that expectation is based on our view that the federal funds rate remains some what plbelow its neutral level, that is the level of the federal funds rate that is neither expan

-- janet yellen as the fed chair.says he wants rates to stay low and added the white house aide gary cohen is also a top contender for the job. joining us to discuss strategy, managing 26.9 billion swiss francs. great to see you this morning. let's start with the big picture , an interesting sector story later. on the big picture with the fed and the -- we wait for their decision and little change expected. on the subject of who runs the fed, does it matter greatly to you to steer the course for balance sheet reduction or to think it does not matter too much? julian: there has been quite a transition. the u.s. election campaign last year, donald trump said that janet yellen should be ashamed of herself because of her monetary policy, the dovish approach to interest rates and it has turned around and he is highly encouraging. what i would say without getting into politics about who should be running the fed is the u.s. needs lower interest rates for quite a while longer. the labor market is fundamentally still quite we

chair janet yellen on the hill.ate hikes, balance sheet, strength of economy. >> speaking of yellen who might be the next fed chair? carey co00's name getting another boost. >> and apple bringing down targets for iphone sales. will it be a delayed launch for the 8. >>> futures up modestly after sell off sparked by donald trump jr.'s release of e-mail exchange. yellen will testify before the house. she says gradual rate hikes will be needed to sustain economic expansion. regarding balance sheet see says the committee anticipates reducing quantity to a level below recent levels. what got people's attention is the idea that rates may not have to get as high as they were in prior cycles. >> i think what that is saying to people is we are going to take them up but you are not going to get inverted yield curve. there have been a lot of recession talk of late which i don't get. there is no recession on the rise from the companies. this does take that off the table. what it does put on the table. we have bank earnings on fr

janet yellen is expected to field questions of interest rates today. the fed's tapering plans and her own future when she appears in front of congress. the fed chair's testimony comes amid a flurry of reports suggesting that president trump is unlikely to nominate her for a second term. national economic council director gary cohn is the leading candidate to succeed janet yellen that is what politico reporting citing four people close to the process. he was with goldman sachs before joining the trump administration meanwhile imf managing director christine lagarde has publicly disagreed with janet yellen's prediction that there is unlikely to be another financial crisis in her lifetime speaking exclusively to cnbc, she advised policymakers to remain on their guard against black swan events. >> i don't want to call it the miscommunication, but there was this taper tantrum thoo we had about, what, three years ago i think everybody has learned from that experience both at the fed level and around the world other countries particularly the emerging market

we continue to watch yellen here some comments that 3% gdp in the next two years would be difficult. the vix trading under 10 briefly. i got the ten year ticking up just a touch and the dow close to the highs ckn mite8., up 1 ba ia nu eal time? wait, our data center and our clouds can't connect? michael, can we get this data to...? look at me...look at me... look at me... you used to be the "yes" guy. what happened to that guy? legacy technology can handcuff any company. but "yes" is here. so, you're saying we can cut delivery time? yeah. with help from hpe, we can finally work the way we want to. with the right mix of hybrid it, everything computes. >>> a lot of pots boiling today. the president with macron in paris. we have the cbo budget score for 2018, and then janet yellen continues to testify in front of the senate banking committee steve liesman is watching that. >> interesting exchange with senator cork eastern the fed chair about whether or not we can hit 3% growth. the fed chair was asked, what is productivity been? she said it's about half a point. how about before about 1

at this point the irony could be janet yellen could be most likely successor to janet yellen. maria: she doesn't have to step down. >> the president i think has indicated there is an uneasy peace between the two. i don't know if they are b.f.f.s. but a truce has been declared and they are kind of on the same page now. so i think that would be good for market continuity. i think you have to have someone -- obviously she is very well qualified. she is a very dovish person. maria: more "wall street week" right after this. >> announcer: fed chair janet yellen has investors in a tissy. but does another fed chair agree this time? alan greenspan joins "wall street week" next. ♪ your body was made for better things than rheumatoid arthritis. before you and your rheumatologist move to another treatment, ask if xeljanz is right for you. xeljanz is a small pill for adults with moderate to severe ra for whom methotrexate did not work well. xeljanz can reduce joint pain and swelling in as little as two weeks, and help stop further joint damage. xeljanz can lower your ability to fight infec

going back to chair yellen, she is obviously concerned.he wants to see the rate of inflation moving toward 2%, but remember, as she said, they cannot wait until they get to 2% before they act. so they are acting in anticipation of somewhat stronger inflation data moving forward and i think that is still their plan. jonathan: at this point, they have been undershooting their inflation target consistently for decades. you can look at the history of the fed chairs and you have to go all the way back to greenspan to see the average inflation rate in and around their actual target. bernanke failed. yellen is failing. do they have a credibility problem? >> i think you are spot on. the goal of reaching 2% core pc has been a loose goal. if you look back over the last few decades, there has been some time between 2004-2008 when the core pce has been consistently above 2%. but barring that short period of time, we have not been able to achieve 2% on a consistent basis. jonathan: we did see through the week a tendency among fed officials to lean towa

at this point the irony could be janet yellen could be most likely successor to janet yellen. maria: she doesn't have to step down. >> the president i think has indicated there is an uneasy peace between the two. i don't know if they are b.f.f.s. but a truce has been declared and they are kind of on the same page now. so i think that would be good for market continuity. i think you have to have someone -- obviously she is very well qualified. she is a very dovish person. maria: more "wall street week" right after this. >> announcer: fed chair janet yellen has investors in a tissy. but does another fed chair agree this time? alan greenspan joins "wall street week" next. one laugh, and hello sensitive bladder. so i tried always discreet. i didn't think protection this thin could work. but the super absorbent core turns liquid to gel. snap! so it's out of sight... ...and out of mind. always discreet. for bladder leaks. so new touch screens... and biometrics. in 574 branches. all done by... yesterday. ♪ ♪ banks aren't just undergoing a face lift. they're undergoing a transformatio

janet yellen what may be her final report to congress.in cirilli is on capitol hill with republican senator david perdue of georgia. -- d kevin: we are here with senator david perdue. you saw the new health care bill. do you like it? involve.ontinues to i am hopeful we will get motion to proceed next week. we will get the cbo scores hopefully monday, and move on to this bill next week. this roomask you for for error. we have seen comments from senator rand paul saying he is not on board. perfection is difficult to achieve, and that's why we have been working so hard. we have a crisis on our hands. obamacare is collapsing after six or seven years. information the senator from montana has been asking for for months. the latest information they can give us his august 2014. the irs find 8 million people in this country because they could not sign up for insurance under obamacare. 85% of those 8 million people make less than $50,000, and half make less than $25,000. of thethere are portions majority leader's bill that would keep some of the ta

chairman and chairman yellen for your service. in the past i have sent letters to you and federal regulators and asked you in hearings before about the requirement that custody banks hold supplementary ratio against deposits at the federal reserve. presumably because of worries that in some future universe the fed deposits may become less safe and available than cash which is a universe that i don't enjoy contemplating. i believe that the federal reserve deposits are exactly the sort of safe place for these large immediately callable cash positions, that we should be encouraging because of the strength and reliability of the federal reserve as a counter party. now, as you may be aware, we now have bipartisan legislation to require that prudential regulators provide relief for institutions that clash with the fed. at the same time as providing significant flexibility for regulators to deal with unusual circumstances. so do you see any safety and soundness difficulties with this legislation if it were to go forward? >> so i'm not go

was declaring only a few days before janet yellen declare that markets will never ever crash again of course the italian banks as we've been. warning about here in kaiser par for quite a few years the italian banks are getting to crumble and stock markets buoyed by italian banks rescue but critics say it has killed the banking union critics are saying deal to save italian banks has ruined credibility of banking union proponents of the deal claim that it was necessary to protect the prosperous then neato region and preventing damaging italy's nascent economic rebound so yes seven hundred billion euros the italian taxpayer is on the hook for bailing out these banks and you notice what they say that created the people who are endorsing this bailout they're saying that well benito area so prosperous these are where the rich people live so we should protect them well you know first of all saying that won't be another financial crash in our lifetimes i mean she believes she is correct she believes that she controls the market that's the north or tarion regime for you they this is what she b

thank you chair yellen. it's good to see you. glad to have you back. as you may recall and i'm sure some committee members will recall from previous discussions, i have consistently raised this issue of older industrial cities, the condition of older communities, a subset of american cities that are continuing to struggle. in fact, i'm launching an effort actually beginning today with a discussion at 2:00 entitled the future of america's cities and towns. specifically to raise more attention around this question. and we've talked in the past about the role that regional banks might play in working with these particular cities that face both economic challenges but specifically the cities that face fiscal stress. the thing that i'm concerned about is that when we look at aggregate data, even with relatively slow growth in the economy, the assumption is that even a slowly rising tide raises all boats. well, it does not. and we know that. and so, the question i have that i'd like you to comment on, perhaps, is