yellen. and, dr. yellen, it's wonderful to have you here with us with your family at georgetown. i wish to offer my gratitude to the members of the tannis family, to peter, who have joined us for this special event. i want to thank you all for being here and for making it possible for us to gather in this way. i'd also like to extent a special welcome to the honorable sela roosevelt, former chief of protocol of the united states as well as ambassador edward gabriel of the kingdom of morocco, and ambassador dina kawar from the embassy of jordan. it's a pleasure to have you here with us today. this afternoon we're privileged to have the opportunity to hear remarks on the past, present, and future of the united states federal reserve from one of the foremost economists of our time, the honorable janet yellen. there are few people better equipped to share reflections on the state of the federal reserve than dr. yellen. she served as a member of the board of governors in the federal reserve system

yellen university history professor joe and freeman talks about her book, a field of blood. after that, british prime minister theresa may's announcement friday that she is stepping down on june 7 and her appearance at question time several days before her statement. ♪ brian: joanne freeman, what is your book, "the field of blood" about? joanne: it is about physical violence in the u.s. congress between 1830-ish and the civil war. brian: how many instances of violence do you have in your book? joanne: well, i found about 70, which is not the total that there is, but at some point i had to stop researching and i

and even with the new transparency of the fed and what powell has attempted to do which is built on yellen and the opens effort of public posture. i think we need to get deeper on why they are stopping the balance sheet runoff that was what they agreed upon two years ago, and has now been halted. it is a consequential decision without much public clarity. are you not in favor of the fed holding a large balance sheet? rep. mchenry: i do not know why they are making that decision as a policy maker. is that decision borne out of government deficits long-term and debt long-term? is it what our economic activity looks like globally? between the euw economy, the question of brexit, chinese debt load, how all those things drive the conversation on the fed board of governors. the fed meeting minutes, we will know why they made this decision. we need somerun, understanding as a policy maker what this means for the american economy and consumer next year and the following year. next week week is the primary in north carolina's ninth district where we have seen quite a bit of chaos. where do you thin

challenge in new york, and this year andrew ross sorkinod mated the event and crowned the next potential yellen powell or janet >> reporter: at the 19th annual economic challenge, students a quizzed on principles in economics. >> land is a factor of oduction. what are the other three factors? >> capital, entrepreneurship, and labo t >> reportet is correct. and put to the test to apply these principles to the real world. assume a consumer is maximizing utility in the consumption of bread and cheeseum further a that these are the only two goods being consumed wham consumed. appen to the marginal utility of bread if the price of cheese decreases? >> it increases. >> that is corct. >> reporter: these are the brightest economic students in the nation who competed in a field of 11,000 teens toeach the championships here in new york city. >> what is the most likely cau of an inverted yield you acurveg >> an impen recession and the yield on longer term bonds being lower than the yield on shorter term bonds. >> reporter: this year mount he on high school won the david ricardo division and adam smith div

bernanke as well as miss yellen where they're using this phrase of transitory when inflation misses toown side. this is just patience from the fed. the market was looking for a cut, looking for more ways to contain the stimulus behavior. but given the economic data, it doesn't warrant at this point and so the front of the curve repriced during that speech. >> we've been hitting record after record, jeff do you guys at doubleline still think we're in a bear market >> well, it's hard to say you're in a bear market when you set an all-time high. that's usually the definition -- >> that's what i'm getting at. >> exactly so the answer is no from a standpoint of the technical definition you need something here for a catalyst for stocks to move higher either earnings need to kick up. we get a multiple expansion which some argued was the reason for the rate cut the fed would pander to that or acquiesce to that. at this stage, you'll need something stronger or some catalyst to get the equity market strong at this level. we've rebounded as you quite have observed here and so from these levels, i

and particularly ben bernanke and janet yellen. wasn't that letter referencing an fsoc rule? >> yes, the letter was addressed to the proposal for an activities-based approach to stability regulation. >> and with regard to -- other than the activities-based focus, which i think is a risk-base focus, rather than just a numbers focus, does that letter refer to any of the other implementation of senate bill 2155? >> no, it's focused entirely on that one measure. >> that's what i also thought. and my question is this. and, again, i'd like to -- i'm pretty much -- well, actually, i'm down to ten seconds so i'm going to stop and move on and follow my own five-minute rule and move to senator brown. >> thanks, mr. chair. i appreciate that. mr. otting, if a car manufacturer cut corners and sold unsafe cars that harm millions of american families, would you recommend that the government respond by recommending car mechanic literacy so they can decide for themselves if the car is safe? yes or no? >> i don't think it's a yes or no answer. i think you would have to understand the -- >> wel

this escalation has been a frightening experience for residents of gaza and israel we talked to eric yellen earlier he is an israeli computer expert living instead about. i live about three kilometers from the gaza border and since. early yesterday morning we've been going through a very rough time i'm going out rockets coming into gaza and we hear also the blasts in gaza from israel you know what we call the red alert so it's it's a loud speaker saying the words red alert. and as soon as we hear that since we are very close to the doesn't work we have up to fifteen seconds to go into hiding. if there is a safe room or a shelter nearby then we run into that shelter if there isn't a shelter that we just need to lie flat on the ground and that that's what happens if you're out in the street or in the supermarket or and where not you're a shelter and on the gaza side we spoke to mohammed abu souther a political scientist lives in gaza with his wife and children and tell us he's ready bombs dropped just meters from his house well the past forty eight hours i have been and i can be up in the gaz

at the end of 2017 before she left office, janet yellen said it was because of mobilephone rate pricesyou can think of normal reasons why inflation has not picked up. president --rd the the present chairman, room powell, telus -- jerome powell, telus it was transitory. is it permanently transitory? i do not think it is going to pick up this time. the reason is, you asked me why it is not happening, the u.s. population is aging. we do not consume as much as before. numbers,itative easing 1, 2, and three, which deprived low and middle income groups of interest income, they did not have enough income to spend. the stock market was boosted. the stock market investors are not as big spenders. that was the second reason for that. third, your reaching the situation where you need immigrant who are young, who are willing to spend. that is what we used to have in the unites states. in the last couple of years, immigration is being threatened. we are not going to have inflation coming from the young people. the question you ask is, when will it turn around? you tell me when the u.s. population s

yellen princeton, just 25%. there you go.we should point out that our story also points out that it had one of the worst average annual returns over the last decade among the ivy league's. i guess if you went to columbia, princeton, or yale, you finally have something to kind of hold over them. some quick breaking news here on aig. they did reduce earnings early. they did reduce expectations. the shares topping $50. that is the highest price since october. joe: coming up, outside of trump's this weekend, the winner of the kentucky derby was one of the most talked about events. actually, he tweeted about that, too. this is bloomberg. ♪ atoline: time for a look what stories are trending. the trump administration and how it may redefine the national poverty threshold, putting americans living on the margins at risk of -- the possible move could include changing how inflation is calculated on the official poverty measure. bloomberg has a story on an unexpected cameo in last nights episode of game of thrones, a plastic lidded cup

put, and -- greenspan put, the yellen put, and the powell put.th effectively to keep growth around 6%. you are seeing distortions all over the place, things we could never have imagined where central banks are buying assets and distorting credit and equity . yes, i you think -- i think you are right that cleansing would not be a bad thing. given we are out, 10 years into recovery, a recovery that has gone extremely well. francine: are you telling us it needs to be rethought? central banks have wanted to hike but inflation has not been there. alan: central banks are targeting something they do not control easily. that is a huge problem and why you see the markets trying to interpret chairman powell, what he says a couple days ago. this fear that if the central banks were to say, inflation is 1.5% and we are hell-bent in getting it up in a symmetric way to 2.5%, guess what type of interest rate that might involve the fed targeting? have done,ons we certainly a negative interest rate in the united states. the inflation targeting obsession is part of

janet yellen, the most recent chair who just retired prior to jerome powell, she came out to clevelando the alcoa plant, the old aluminum plant. she and i spent maybe two hours on the floor of that plant in cleveland. and i'ved to see, taken another economist from the obama administration out to an auto plant in ohio. they need to see what workers do in this country, whether it is hospital or hotel workers, people working for tips or mid-level people working for salaries, or swiping a badge or taking care of families. the dignity of work means all workers. i just went to see these numbers of the fed and their background spend some time on shop floors, construction sites, hospital rooms so they can see the kind of work most of america does outside of washington. it will help them see the economy through the eyes of workers, not through the eyes of wall street and the sequestered halls of the federal reserve. david: to pursue these sorts of politics you feel very strongly about and have been consistent about overtime, you need not as the president. i am not going to ask about the 2020 el

wouldn't these be transitory events and to janet yellen's comments this something they should look past, no >> it really depends i think one of the things that surprised all of us is if you look at it, the numbers are picked up in china over the last several months it is also by the way a reason that china made decide to get tough and say okay, let's see what the problem is. the thing is we all thought there was going to be lots of flow through to europe we haven't really seen that. and that's a concern >> 3,000 is your target. >> yes. >> so do we need the two cuts in order to get to 3,000? >> not necessarily but we need either that and heaven forbid brexit to work out. >> julian, thank you >> i think it's important to remember, you know in, the throes of that selloff in q-4, we also had an unforced error by this administration who got tempermental and walked way from a deal and the government got shut down. so into this trade war we had what was supposed to be a tax cut to the prior error and walk way. we've seen this time and time again. we've seen it in north korea walk out of a meet

so to swrjanet yellen, so did b bernanke before them. but if you start putting people on who has you guys indicated at the top says well i'm on to push the president's economic agenda and it's to get the president re-elected, that is not what inspires confidence in our alloys and in our training partners an the rest of the world. >> all right. thanks to both of you. we should mark that markets are still low er for the day. interest rates that are not controlled by the fed but by bond traders are up a little bit. this is for the second day in a row, so again, i wobt call this big reaction. i>> big earnings week. so people are -- >> it is off setting activity. >> next. the attorney general was a no show for his house hearing since the redacted mueller report was released. we'll be speaking to member of that committee. don't go anywhere. this is msnbc. committee don't go anywhere. this is msnbc. ♪ [laughter] ♪ ♪ "i'm okay." ♪ ♪ >>> welcome back. would you like to go? >> that's cool. on capitol hill today, the political legal battle lines ha

i saw former chair yellen last it could mean that horrid could just mean it is time for the fed to actsed me. i think the fed is being decidedly neutral at the moment. which i personally feel is the prudent thing to do. to cut rates ahead of hard evidence that the recession is really coming is using some of your firepower and they don't have a lot of firepower. that is the morgan stanley ceo speaking exclusively to tom mackenzie. axel springer could be going private. the german publisher is in talks with its founding family and private equity firm kkr about a potential strategic investment is part of the investment. joining us now is rebecca who covers media 4s at bloomberg. sting things isre that this company has always felt like a private company because the founding family is still so active. >> that's right. at face value, this comes as a bit of a surprise given there has not been rife speculation about a take private offer for axel springer. as you mentioned, the fifth wife of the founder of this company is the largest shareholder. she is very close with the ceo. has had a very in

the former fed chair janet yellen said it could mean that or it could just mean it is time for the fedut rates. that surprised me, frankly. i think the fed is being decidedly neutral at the moment, which i feel is the prudent thing to do, to cut rates ahead of hard evidence that the recession is coming is using some of your firepower, and they don't have a lot. manus: morgan stanley chairman and ceo james gorman speaking exclusively to bloomberg. daly.g us now is eimear gorman says equity and bond markets are price for full exhalation. specialist.x is the yuan going to bust seven on an escalation? is the seventh safe for you and the yuan offshore? this is the big question for investors, if and when seven will break. for us, it is focused on the length of the tariffs. tariffs are no further imposed, but no signs of progress, we think the yuan will .luctuate around seven with further deterioration in u.s.-china relations, we are looking at 7.20. nejra: all that we have a pullback in equities, you are still seeing them elevated versus some of the investor sentiment, at least by one of sta

winds will be gusty at times as we head in toward the afternoon look at that because our see some yellen's red beginning to show up and you look up the scale there though some winds gusting up to 30 miles plus around the bay area so what's that system moves by the winds will be coming calling down somewhat and the out there to stay well below the average of all rainfall totals never see a lot of ab adding to already impressive totals uh well above the average. these about an inch plus in santa rosa, lesser amounts to the south of them remember the things you to keep going as we head in towards sunday, too. i mean some of those numbers very impressive almost an inch of rain in san francisco. any we're adding up some epic numbers all says like bonus rain around the bay are going up above normal. there's one more system after that and then i look way out there in the tent and see if i can put any more rain hopefully a little sunshine for memorial day weekend that unites all right, thank you. >>and the east bay, a hidden camera found inside a men's restroom police say this happened at an indoo

most fun moments, most productive moments and days in my time in the senate is when i asked janet yellen to come out to cleveland and she visited major major aluminum stamping plant in cleveland not far from where i live and it gave her perspective on what americans do for a living, sometimes in manufacturing, sometimes in sales, sometimes in service. i'm hopeful that is who the president will look at, someone who will respect the dignity of work, someone who will want to go out, as abraham lincoln said, get my public opinion baths and outside the halls of the american reserve and see a policy that will help american working families. mr. president, i yield the floor. mrs. blackburn: the presiding officer: . there the senator for tennessee. mrs. blackburn: thank you, mr. president. i'll tell you, mr. president. i just have to say a couple of words about the economy. since my colleague from ohio was speaking of the economy, i will say this -- showing respect for workers and for work means that you show respect by realizing that the best way to stimulate the economy is a job, and that is s

. >>> next, former federal reserve chair janet yellen sits down for a conversation on monetary policy. she spoke at georgetown university and took kquestions from students. this runs an hour and 15 minutes. >> good evening. i'm harriet hamase, dean at the library. it's really great to see such a

last 50 years, but on the other hand, i saw former chair yellen, i think it was last night -- it could it could mean it is time for the fed to cut rates. that surprised me, frankly. is beinghe fed decidedly neutral at the moment, which i personally feel is a prudent thing to do. to cut rates ahead of hard evidence that the recession is really coming is using some of your firepower, and they do not have a lot of firepower, but that to your core question, tom, it is concerning. look at what the 10-years in germany are doing. it shows how anxious the markets are, and there is more news to be anxious about than there is to be positive about. tom: in terms of recession and the likelihood and the timeframe, are you able to give anything on that? james: i would be doing a different job if i could do that. no. i guess we will have a recession at some point. it used to be priced in every year. i think the fed does about 15%, one in every seven years, roughly. we have obviously gone longer than that. it is not that bad. it could be shallow and short, which, given the strength of the economy, tha

janet yellen used that word the couple years ago.said the low inflation is transitory and then they pointed out that people are buying clothes and that is low, and airline tickets are low. i thought they embarrass themselves when they said portfolio management fees are keeping the inflation rate down. hedge fund managers charging two and 20 and cutting their fees is what.g disinflation is the fed is trying to say at any given time there is probably three or four things that are pushing inflation up. it is an index. there is always something pushing it down. there's always something pushing it up. i think they are failing to recognize the overall trend in inflation is down. it has been down. it has been down for a number of years. i think the market knows this. it wants the fed to recognize that inflation is low, and consider cutting rates later this year. when they say low inflation is transitory, that sounds like they are in no hurry to cut rates. and we are maybe even thinking if it's bumps up, we might talk about raising rates. i

very ill-timed if i borrow janet yellen's words.hat physical muscle,- that fiscal you will have to do policy that will balloon the deficit further. it will happen in the next downturn or the next administration. , youf these large policies want to talk infrastructure, what about the $2 trillion plan? if you cannot pay for it through tax increases or spending cuts, you're going to have to increase the deficit and it is not going to be paid for. whatever name you want to give it, this is coming. david: let me ask a basic question. has monetary policy work, and more pointedly, the people who voted for donald trump, with a say monetary policy is working? huge divide in a weather monetary policy has worked or not. the fed has done everything in its power with the tools that have in order to provide as much accommodation as it can. we can argue whether they should've gone negative or what the guided sheet should have been. david: they did everything they could. ellen: they did everything they could and it shows after financial crisis that

-- it was never -- nothing like that was ever claimed by ben bernanke when this started or janet yellent or jerome powell now the fed was put in qe as a kind of the dutch boy inthe dam put in the thumb, things were deteriorating terribly the interest rate is almost zero what are we going to do now. so they did this qe, was an appropriate thing to do, but i don't think anybody should exaggerate the affect that had on gdp certainly measuring growth effects in the tenths of a percent, not in the percents >> so, you referenced the fact that we're going through a pretty good economy. a lot of traders out there, we ask them why the economy is not down more as a result of the trade tensions say because we're still the goldilocks scenario, low inflation, better growth, better jobs, fed on hold, you know, it is all a very good scenario for risk assets to rally. how much longer can that last? >> i wish i knew the answer to that i think it will last a while longer, if you asked me this question two years ago, will this last another two years, i think i would have been skeptical. we have done bette

janet yellen was a chair. she said, "i think this is going to bounce back."waited an entire year, and, indeed, it did turn out to be transitory, and we did get to our 2% target, but it is unclear if we want to tell that story again after two years of upside surprise in the u.s. economy after a 50-year low with unemployment. i mean, come on? rishaad: it looks wonderful, at least on paper. mr. bullard: [chuckles] rishaad: but tell me something. you guys at the fomc, during the financial crisis, looked at money supply, especially m1 and m2. as do not seem to do that closely now. you see them going down, and that is normally indicative of a low-inflation environment and one that will remain in a low inflationary environment, so why are you really not talking about it that much? mr. bullard: yes, the st. louis fed over the last 50 years -- it has been a very tough issue. very long-termn trends is helpful, but as far as helping on a quarter to quarter basis, probably not that useful. you know, we do need to supply the right amount of money to hit the inflation targ

on the other hand, i saw former chair yellen said it could mean that, or it could just mean it is timeor the fed to cut rates. that surprised me, frankly. i think the fed is being decidedly neutral at the moment, which i personally feel is the prudent thing to do, to cut -- thing toof hard do. cut rates ahead of hard evidence of a recession is using your firepower. alix: joining us now from boston is charles schwab's chief global investment strategist. so good to see you. we have james gorman saying we are pricing in a full-blown tariff war. then ray dalio says history have countries in conflict seen that things can go out of control and all parties deeply regret it. is a risky time. which do you go with? guest: well, it is a risky time. they mentioned the yield curve. the yield curve is an indicator of recession risk. war be therade catalyst? there is potential there. it is not an issue between a full-blown trade war or a happy resolution. this is somewhere in between. perhaps there will be some kind of deal, but how long will it take at the same time that the global purchasing manage

is >> right >> i go back to what the fed says, jay powell what he's basically saying is fine janet yellen, we would have said nothing. she's obviously on board there is people who thought he's going to cut who are those people who are the people thought he's going to cut and bow to the president? >> well, pinco suggesting that many if not most on the committee would favor a preemptive cut >> we have seen the other way. and taxes. >> maybe the census. i think that april is a strong month in the country because we had issues in march and february we had bad weather so i think things are caught up. that one part that grew the professional, that's a little suspicious >> yeah. >> if larry kudlow were here, he would say jimmy -- with all due respect, it is even better than you think. >> it was great. it was very great. yeah, i love larry >> you mentioned powell. buffett making some headlines today saying that there is nobody should be running fed other than jay powell. look, you talk about a dual mandate of strong deployment and slow inflation, they're not fulfilling >> let's go back to '69. no

this is yellen coming in with the move higher, calling it the rates.izing of interest powell comes inbout the tension of trade war, trade war, trade war -- maybe it is not. martin: i do think that what the fed and powell are trying to do is insulate themselves from both the influence of the white house , trying to make sure that interest rates do not go up, with the reality of the economy. in december, we were talking about a possible rate hike. now, three months later, or six months later, the next move may be down. the fed is trying to balance reality with the perception of pressure from the white house. this is back drop of people on the same page about the global slowdown in overlay. francine: but i heard that if the trade war escalates or stays as it is, it is deflationary. what is it, actually? stephen: that is a good question. there trade war, to the extent that it threatens global supply beens, and it does, it has a major source of disinflation for the world. a study from economists at the b.i.s. a couple years ago estimated the impact of global supply chains on cpi inflation

out in the last day or two from a number of former fed members, particularly ben bernanke and janet yellen. wasn't that letter referencing a rule? mr. quarles: yes, it was on the proposal of stability regulation. chairman crapo: and with regard to -- other than the activities spaced focus less activities based focus, which i think is a risk-based focus rather than in numbers-based focus, does the letter referred to the implementation of senate bill 2155? mr. quarles: no, it is focused entirely on that one measure. chairman crapo: that is what i thought. my question is this. i am down to 10 seconds, so i will stop and move on, and follow my own five-minute rule and moved to senator brown. brown: thanks, chair. i appreciate that. , if a car manufacturer cut corners and sold unsafe cars that harmed millions of american families, would you recommend that the government respond by recommending car mechanic literacy so they can decide for themselves if the car is safe? yes or no? otting: at a think it is a yes or no answer, i think you would have to understand the -- i don't view it as a yes or

that cornflakes moving back to 2% is as prescient as jan and yelling's view -- janet yellen's view twoe get there? priya: if the fed is easing, you can because the rate goes down to zero, they will use qe and forward guidance. tom: if he is right -- which is rare -- if rosenberg is right, are you suggesting a linear move from two to 120? priya: rates could call because i do not by these insurance cuts. if they are starting a full on easing cycle and taking rates down to zero, we are talking about average inflation targeting. i think they will pull all the stops and that will take rates lower. i disagree with david. financial conditions are very easy. the stock market has fallen recently, but we are significantly higher than the end of last year with growth much better than expected. china has put a lot of stimulus measures out there. we are seeing early signs of improvement in china. it is still slowly filtering through into europe, but the u.s. is going ok. i am worried the markets will say, what does the fed know that we do not know? i think if growth is at zero, they are starting to

powell is trying to tow the line and taking it very carefully, similar approach we saw from janet yellenwell and i think it's really important to your point, charles to look at all of the theses of the economy together, the fed certainly has, you know, a big role to play in that, and for so long in his rates were low and the stock market rebounded from the great recession, you know, we're just getting out of that. this was a tipping point. the president could have saw his economy go downhill from here or take it to the next level and make it a 20 year cycle it remains to be seen exactly what's going to happen but to say that what we're seeing in the stock, they're completely separate the president shouldn't have an influence and he shouldn't . the fed should act independently but all of these pieces are all working together. neil: you know, five down weeks in a row with the market still an up market on the year are you worried? charles: i'm not worried, because it could have been worse , and that's how i look at it, i look at the may 13 sell-off that's a number i'm looking now for the ho

i saw former chair yellen last night say, that could mean that or it could mean that it is time for the fed to cut rates. that surprised me. is beinghe fed decidedly neutral at the moment. i personally feel that is the prudent thing to do, to cut rates ahead of hard evidence the recession is coming, is to use firepower, and they don't have a lot of firepower. francine: that was james gorman speaking exclusively to bloomberg. john, head of global multi-asset strategy, is there anything we are not blaming on the trade war? >> that sometimes feels like that, doesn't it. it is worth looking at, in terms of it being an important feature in how capital expenditure and trade flows are actually going. way in which the the economy has developed over the past year, consumer in the u.s. is doing well. better begun to see signs of improvement in the housing market which makes up 70% of u.s. gdp. that looks fine. capex and trade are these low points. more in the stock market. francine: can you have a recession in the u.s. and have a strong consumer? john: realistically, no. typically recessions begi

last week former fed chairs ben bernanke and janet yellen joined former secretaries jack liu and tim geithner by criticizing this move by fsoc, warning that it would be, quote, neuter the designation authority. writing of their experiences at the helm during the financial crisis, the four regulators noted that the failure of non-bank financial companies was essential to the propagation of risk from the financial system to the u.s. economy, international finance markets and the global economy as a whole during the crisis. what do you make of this criticism? isn't it true that fsoc just made it harder to protect against risks taken by non-banks? >> well, first let me say i think it's good that we have a system where people can put in comments on proposed regulations. i actually spoke to secretary lew about his letter. they have a different view on regulatory issues, it's a different time, but not unlike their letters, we'll look at other letters before we put in final rules. >> and their view stemmed from the experience of the meltdown that we experienced in 2008. would you please expl

know, they tend to x out food and oil because it's so volatile when they make -- well, maybe janet yellene going to switch the topic, the fed, their biggest issue now is why haven't they been able -- ashley: yeah. they are worried about deflation. stuart: let me assure you, on this program we never switch the subject to the fed. >> i forgot. it's been a long time. stuart: [ inaudible ] still in london? >> he's still in london. stuart: is he a brexiteer? >> he loves nigel farage. he went out for a couple of beers with nigel. stuart: everybody has a couple beers with nigel. charles, thank you very much. have a great weekend. >> you, too. stuart: jackie, thank you very much. later this hour, the president does indeed leave for japan. he's going over there to attend the investiture of the new emperor and will be discussing trade. japan is rolling out the red carpet for our president, giving him a very warm welcome. now, as he goes towards marine one, he will often stop and say something to the reporters. he can't resist a camera. if he says anything, you will hear it. >>> we are also bringing

you have seen well respected economists like janet yellen -- she made the same point. once a downturn starts, this will make it worse, the fact that we have this leverage loan issue but it will not trigger the downturn. angeles,id, los republican line, good morning. caller: good morning. optimism.r on its face, the economy appears to be doing well. out quiteou have left a few relevant facts that theory the economy is doing good. let me explain. in all large cities across u.s., cost-of-living has skyrocketed. it has gone up 20%-30%. rents in los angeles, one bedroom up the street is renting for $2700. it is fine to have a job but if that job does not sustain your living expenses, the economy is not doing so well after all. furthermore, cost of groceries has gone up, gas prices are up, homeless rate has nearly doubled in most cities across this nation. so, the picture isn't as rosy as you paint. i wanted to bring that up because i have been listening to you. you have not mentioned one time about the cost-of-living. wages have gone up approximately 3%, true. here is anoth

janet yellen was late to the partiful >> you don't think they can raise rates anymore?i think it's comfortable here i think we're close to what's perceived as neutral >> you're blaming it on central banks overseas, not on global inflation or actual fundamentals >> i think all central banks made plenty of mistakes. overseas, the other central banks right now are -- >> what can they do now? >> they can't do much now. >> they have entitlement states, this euro system without a central fess cal fiscal authority. >> and they have those wonderful bureaucrats unelected. >> farage may take care of that. >> i think so. >> why are there negative rates in europe? >> that's the trend for the next five, ten years i think. >> negative rates? >> yeah. europe runs on germany if germany is slowing, the rest of europe will slow with it. we're not there yet in terms of where we could go with rates and the negative territory some 13 trillion now of the world's interest rates are negative what the fed missed most is inflation, raising rates seven times to where we are now. i think them bein