33 Burst results for "Ben Bernanke"

"ben bernanke" Discussed on Bankless

Bankless

04:32 min | 2 months ago

"ben bernanke" Discussed on Bankless

"In the world that can create new U.S. dollars out of thin air. That's the fed's superpower. They make money. They could literally create new dollars out of thin air. Okay. So when the fed creates new dollars, it's like putting water into a swimming pool. And that swimming pool is called the monetary base. It's like how many original new dollars the fed is created. So when the fed creates more dollars that monetary base grows and when the fed basically sucks dollars out of circulation, the monetary base shrinks. Okay, for the first 95 years of its existence, the fed kind of gradually and steadily created more dollars. It expanded the monetary base to be about $900 billion. That was like the core foundation of U.S. money. 900 billion. And then between O 8 and 14. And about 5 and a half years, the fed created three and a half $1 trillion. So more than 350, more than three X, the way I put it is more than three centuries of money printing and about four and a half years. Is it fair to say for the first 95 years of the feds existence, they were largely responsible. And effective in their controlled metering of adding money to the pool. And then they just blew it out of proportion. Is that a fair description? That is a fair description. And you know, we could sit here for a long time and kind of debate, did the fed mess up in the 1960s, for example, by keeping rates too low for too long and stoking inflation. But the way I would put it is that from the day it was created in 1913 until about 2008, the fed stayed inside these lanes, okay? The fed said, we have a lot of power, but we're going to use it to do a couple important things. The first is to just manage U.S. currency. We're going to make sure we don't have massive inflation or massive deflation. We're going to keep the Goldilocks pot bubbling on the U.S. dollar. And then the second key job was that the fed was going to be there as the lender of last resort. If there was a banking panic, the fed would bail out otherwise healthy banks and stop bank panics. So for decades, the fed really stayed in this lane. And what happened after O 8 is that you had this very activist kind of heroic aspirationally heroic fed chairman named Ben Bernanke who was just like, you know what? We are going to be like the jobs program for America. We're going to be the engine of economic growth in America after 2010. We're going to do everything we can to stoke economic growth. And that's when they print 300 years worth of money in four and a half years. Another way to talk about this, you hear this really boring term of the fed's balance sheet, we'll just call that the size of the fed's footprint. When they print more money to increases their balance sheet, the balance sheet exploded from 900 billion in O 8 to four and a half trillion in 2014, and today it's 9 trillion. So you're seeing the footprint just expand dramatically. And it's broken outside the bounds of the job. It was created to do.

fed core foundation of U.S. money swimming America Ben Bernanke
"ben bernanke" Discussed on What Bitcoin Did

What Bitcoin Did

03:37 min | 2 months ago

"ben bernanke" Discussed on What Bitcoin Did

"Nobody was homeless or anything, but my grandmother loved she still loves with my aunt and uncle and their house went underwater. And they had to move. They were completely displaced. Which was very unfortunate and they had downsize and have cousins and it was just like a huge loss for them. And it was really sad to see that. The company, my brother worked for went out of business. And my brother lost his job. He's gainfully employed now. Again, everyone's fine. But seeing how this impacts real people. It had a big impression on me at a young age. My parents, we did not, my parents didn't inherit anything they worked for everything they had, half of their life savings, just evaporated with the stock market collapse. So I'm in school, studying economics, reading these math books written by Ben Bernanke, who was the chairman of the fight at the time. And me and a couple of my Friends were like, this isn't explaining what's happening in our hometowns right now. And we started getting an arguments with the professors because there was a lot of friction in the classroom. And so there was a small group of us where we said, okay, we really do want to understand what's happening. And we weren't getting the answers in school. So we started just searching whatever information on the Internet. And in the library that we could find. And the first person we found, who was able to explain what was going on, was this guy who was running for president. It was actually an o-b-gyn doctor. Running for president, who was talking about ending the fed and auditing the fed, and that was doctor Ron Paul. Wow. So was he an independent at that point? Or was he running? He ran, he was running for the Republican nomination. Okay. Yeah. And so a very large platform. Thankfully, we were able to find out. But he was able to answer a lot of questions. And if you go on to his start reading about him and his talks, he would talk about Austrian economics. So then we got introduced to all the great writers of Austrian economics from misas and rothbart. And that that was the answer. And I'll tell you the thing that was so difficult for me that really just a really bad taste in my mouth was that the school didn't even bother to tell you the economics. It's not science. It's not math, where there's just one answer, like two plus two equals four. Like there's no other way to do that equation, right? It's a theory, economics is theory, and there's different theories of economics, but they only teach you one. And they don't tell you that there's others out there. Which is the one they teach you. Well, of course, keynesian economic. Who does that benefit? It benefits the current system in place. Exactly. And we looked into that too. We're like, why is this? And I wouldn't quote this stat, but I'd have to go back and look and see if I can find it. But when I did the research on it several years ago, I found that it was up to 50% of all PhD economists today in a lot of those are working in universities and in academia or in government. Or other places. But about 50% of all economists working today are somehow on the fed's payroll. Incentives matter. Yeah. Yeah, we've been talking a lot about incentives recently. So I moved to Washington so my senior year of college, I hold on, can we just roll back a second?

fed Ben Bernanke misas rothbart Ron Paul academia Washington
"ben bernanke" Discussed on Bloomberg Radio New York

Bloomberg Radio New York

02:24 min | 3 months ago

"ben bernanke" Discussed on Bloomberg Radio New York

"Abide by their price increases, they'll switch to something else or they'll switch to a competitor. Then that forces them not to raise prices and that that's the mechanism that causes inflation. I feel like it's economics one O one, right? We talk about these dynamics, especially when it comes to pricing. I love your story. You give us some inside as to who bullard is. And you talk about how he has earned a reputation as something of a maverick. What is it about his background, his studies that maybe makes him think a little bit differently? Well, he grew up in Minnesota. He's, you know, you have so many of the fed leaders including some of their super respected MIT or Harvard. I've been Ben Bernanke. And so forth. But bullard grew up in Minnesota in a small town. He played basketball, and he was interested in the 70s and what he was seeing with inflation and he recalled how he went to college at St. Cloud state university, and there was a poster on the wall, explaining all the causes of inflation and like one theory was it was labor unions and another was it was government spending and there were one or two others. And the one theory that was not up there was the fed causes inflation. And that was kind of become conventional wisdom after a Volcker finally raised rates and enslaving dragon as he put it. Hey, Steve, before we let you go again, it just a great profile encourage everybody to read it. What can you offer from your profile to investors right now, trying to make sense of the fed's path moving forward? What did bullard say about that? What bullard said is that, you know, I was kind of pressing him on what would cause you to pivot what would cause you to change your tune and he said basically right now it's too early to be even thinking about that. You have a two sided mandate on the one hand inflation is 8% on the other hand, unemployment is at 3.5%. Their mandate is full employment and price stability. So it's like there's really no argument right now. Until that dynamic changes, you're not going to see the fed change. And people stop talking about pivot. Come on. Just kidding, just kidding. Steve Matthews, great story, economics reporter at Bloomberg news from Atlanta bureau, so relevant to

bullard fed Minnesota St. Cloud state university Ben Bernanke MIT Harvard Volcker basketball Steve Steve Matthews Bloomberg news Atlanta
"ben bernanke" Discussed on Bloomberg Radio New York

Bloomberg Radio New York

02:19 min | 3 months ago

"ben bernanke" Discussed on Bloomberg Radio New York

"Now, with the latest news from New York City and around the world, here's Michael Barr. Lisa, Jean, no response yet from The White House on Russia's massive attack on targets across Ukraine. The head of Ukraine's military says dozens of missiles were launched into the country. Many of the rockets hitting Kyiv as people were going to work and school. The European Commission condemned the Russian missile strikes today that killed civilians and damaged civilian infrastructure. European Commission spokesman Peter stano. The European Union condemns in the strongest possible terms this heinous attacks on the civilians and civilian infrastructure these attacks they are barbaric and cowardly attacks and they only show that the Russia is opting for a tactics aiming and indiscriminately bombing the civilians the European Commission's Peter stano described the attacks as a war crime. Russia's president says the attacks were in response to the bombing of a vital bridge that connects mainland Russia to occupied Crimea. Violent anti government protests are intensifying and spreading in Iran, sparked by anger over the killing of a woman who is arrested by the so called morality police and then dying in police custody. The protests started four weeks ago, the death of 22 year old masha amini for allegedly wearing a hijab improperly. One woman protesting in Iran says enough is enough. Meanwhile, Iran analysts Holly doggy says these demonstrations are extraordinary. They're chanting death to the dictator that to Khamenei, they're removing their headscarves. There's been viral videos of Iranian girls flipping the bird at the supreme leader of Iran's photo or stomping on his photo in classrooms. Analyst Holly dogras. Former Federal Reserve chair, Ben Bernanke, and to U.S. based economist Douglas diamond and Philip dybbuk have won the Nobel Prize in economics, the academy's Hans eloquent. They obtain the prize for research on banks and financial crises. The winners will share prize of $900,000. In baseball the season's over for the match, they lost to the Padres 6 zip in the deciding game three of their new wild card series. Live from the Bloomberg interactive broker studios, this is global news 24 hours a day on air and on Bloomberg quicktake powered by more than 2700 journalists

Peter stano European Commission Russia Michael Barr Ukraine Iran masha amini Holly doggy Jean White House Lisa New York City European Union Crimea Holly dogras Douglas diamond Philip dybbuk Khamenei Ben Bernanke
"ben bernanke" Discussed on TIME's Top Stories

TIME's Top Stories

02:29 min | 3 months ago

"ben bernanke" Discussed on TIME's Top Stories

"Former fed chair Ben Bernanke shares Nobel Prize for research on banks by The Associated Press. Stockholm. This year's Nobel Prize in economic sciences has been awarded to the former chair of the U.S. Federal Reserve, then as Bernanke, and two U.S. based economists Douglas W diamond, and Philip H dippy for research on banks and financial crises. The prize was announced Monday by the Nobel panel at the royal Swedish Academy of Sciences in Stockholm. The committee said their work had shown in their research why avoiding bank collapses is vital. Nobel Prizes carry a cash award of 10 million Swedish kronor, nearly $900,000, and will be handed out on December 10th. Unlike the other prizes, the economics award wasn't established in Alfred Nobel's will of 1895, but by the Swedish Central Bank in his memory, the first winner was selected in 1969. A week of Nobel Prize announcements kicked off October 3rd, with Swedish scientist svante pebo receiving the award in medicine for unlocking secrets of Neanderthal DNA that provided key insights into our immune system. Three scientists jointly won the prize in physics Tuesday, French man Alain aspect, American John F clauser, and Austrian Anton xylan, had shown that tiny particles can retain a connection with each other even when separated. A phenomenon known as quantum entanglement that can be used for specialized computing and to encrypt information. The Nobel Prize in chemistry was awarded Wednesday to Americans Carolyn R bertozzi and K Barry sharpless, and Danish scientist Morton meldal for developing a way of snapping molecules together that can be used to explore cells, map DNA, and design drugs that can target diseases such as cancer more precisely. French author Annie or no, one this year's Nobel Prize in Literature Thursday, the panel commended her for blending fiction and autobiography in books that fearlessly mine her experiences as a working class woman to explore life in France since the 1940s. The Nobel Peace Prize went to jailed Belarus human rights activist, alevis biley, the Russian group memorial, and the Ukrainian organization center for civil liberties on Friday.

Douglas W diamond Philip H dippy Stockholm U.S. Federal Reserve Swedish Central Bank svante pebo royal Swedish Academy of Scien Ben Bernanke John F clauser The Associated Press Anton xylan Bernanke Alfred Nobel Nobel Prize Carolyn R bertozzi Barry sharpless Morton meldal U.S. Annie
Nobel panel to announce winner of economics prize

AP News Radio

00:51 sec | 3 months ago

Nobel panel to announce winner of economics prize

"The royal Swedish academy's hands elegant says this year's Nobel Prize in economic sciences has been awarded to the former chair of the Federal Reserve Ben Bernanke and two economists Douglas diamond and Philip dybbuk They obtain the price for research on banks and financial crises The research of the three in the early 1980s laid the foundation for the modern understanding of the role of banks and how their collapse make financial crises worse by Anki and lies The Great Depression showing how runs on banks deepened and prolonged the economic crisis while diamond and Diggs research showed that banks are the intermediaries that can allow people to access their savings when they wish while offering long-term loans to businesses and homecomers but the combination makes the banks vulnerable to rumors of collapse I'm Charles De Ledesma

Royal Swedish Academy Douglas Diamond Philip Dybbuk Nobel Prize Ben Bernanke Federal Reserve Diggs Research Charles De Ledesma
"ben bernanke" Discussed on The Indicator from Planet Money

The Indicator from Planet Money

04:24 min | 8 months ago

"ben bernanke" Discussed on The Indicator from Planet Money

"To better understand the fed's thinking, we're going to start with what's called the taper tantrum. Ah, yes. The fabled taper tantrum. So bring your mind back to 2008. The height of the financial crisis, the fed had already brought short term interest rates down to zero, but the economy still needed a further nudge in the ribs, right? It needed more stimulus. And so the fed tried to do something new. It started to buy up what would eventually become trillions of dollars of assets to help drive down long-term interest rates. And this is what became known as quantitative easing or QE. So essentially the fed wanted interest rates really low. So it bought a bunch of bonds, which meant that those bonds didn't need high interest rates to attract buyers. And those low interest rates were intended to stimulate the economy. But quantitative easing was meant as a temporary measure, right? Something just to get the country through the 2008 crisis. And so several years later, by 2013, some members of the Federal Reserve board, which decides monetary policy, they were getting antsy. And one of the people on that board was Jerome Powell. So him and a couple of other buddies on the board said to Ben Bernanke, look, we got to get back to something closer to normal. We got a real in this bond buying. In a fed meeting in June 2013, drone Powell got even blinder, he acknowledged that, yes, no kind of action was risk free. But these are his actual words. We've got to jump. So he was meaning they need to get out of QE. And so that day because of that pressure that Jerome and his colleagues were putting on Bernanke, Bernanke walked over to his usual press conference in front of the reporters and the cameras. And he announced a scenario for slowing down QE purchases. For tapering off the buying of bonds. And just listen closely to this because this might be one of the most expensive sentences ever uttered in the 2010s. If the incoming data are broadly consistent with this forecast, the committee currently anticipates that it would be appropriate to moderate the monthly pace of purchases later this year. And if the sound so innocent and dull almost..

fed Jerome Powell Federal Reserve board Bernanke Ben Bernanke blinder Powell Jerome
"ben bernanke" Discussed on Marketplace with Kai Ryssdal

Marketplace with Kai Ryssdal

01:46 min | 9 months ago

"ben bernanke" Discussed on Marketplace with Kai Ryssdal

"Answer every question <Speech_Male> I might have in <Speech_Male> tremendous detail. And <Speech_Music_Male> <Advertisement> so I have to <SpeakerChange> do <Speech_Music_Male> <Advertisement> the best I can on <Speech_Music_Male> <Advertisement> my own. <Speech_Music_Male> <Advertisement> A little bit more <Speech_Music_Male> <Advertisement> from the former fed <Speech_Music_Male> chair <SpeakerChange> on <Speech_Music_Male> this program tomorrow. <Music> <Music> <Music> <Music> <Music> <Music> <Music> <Music> <Music> <Music> <Music> <Music> <Music> <Music> <Music> <Music> <Music> <Music> <Music> <Music> <Music> <Music> <Music> <Music> <Music> <SpeakerChange> <Speech_Music_Male> <Advertisement> <Speech_Music_Male> <Advertisement> <Speech_Music_Male> This final note <Speech_Male> on the way out today, <Speech_Male> I heard brancaccio <Speech_Male> say this on the <Speech_Male> morning report this morning <Speech_Male> and I figured <Speech_Male> I would just steal <Speech_Male> it because it's <Speech_Male> kind of wild. So <Speech_Male> you know how Shanghai has <Speech_Male> been locked down for <Speech_Male> 7 weeks <Speech_Male> now, right? <Speech_Male> Almost nothing <Speech_Male> happening for <Speech_Male> most of that nearly two <Speech_Male> months industry and <Speech_Male> economy wise, <Speech_Male> including <Speech_Male> said the Shanghai <Speech_Male> automobile <Speech_Male> sales trade <Speech_Male> association yesterday, <Speech_Male> <Speech_Male> zero car sales <Speech_Male> in April, <Speech_Male> none in a <Speech_Male> city of <SpeakerChange> 25 million <Speech_Male> <Speech_Male> people, <Silence> not a single <Speech_Male> car sold. <Speech_Male> All right, we're <Speech_Male> going, but not without your <Speech_Male> moment of economic context, <Speech_Male> and I'm just going to <Speech_Male> call it right now. This <Speech_Male> is a timestamp. That <Speech_Male> <Advertisement> whole Elon Musk <Speech_Music_Male> <Advertisement> buying Twitter thing. <Speech_Music_Male> <Advertisement> It's not happening. <Speech_Music_Male> <Advertisement> Definitely not <Speech_Music_Male> <Advertisement> at $54 <Speech_Music_Male> 20 cents a <Speech_Music_Male> share. <Speech_Music_Male> He's just <Speech_Music_Male> <Advertisement> trolling us. <Speech_Music_Male> <Advertisement> Troll <SpeakerChange> troll <Speech_Music_Male> <Advertisement> troll. <Speech_Music_Male> <Advertisement> Our <Speech_Music_Male> <Advertisement> digital and on demand <Speech_Music_Male> team includes Carrie barber. <Speech_Music_Male> <Advertisement> Siobhan Brent. <Speech_Music_Male> <Advertisement> Dylan myth <Speech_Music_Male> <Advertisement> and Jenna win oga <Speech_Music_Male> <Advertisement> oxman Donna Tam <Speech_Music_Male> <Advertisement> and Tony Wagner. <Speech_Music_Male> <Advertisement> I'm

"ben bernanke" Discussed on Marketplace with Kai Ryssdal

Marketplace with Kai Ryssdal

04:51 min | 9 months ago

"ben bernanke" Discussed on Marketplace with Kai Ryssdal

"As you all know. Does that miss, I guess? Impact its credibility now. I mean, clearly you believe that the fed still has credibility, but I guess I wonder why you think that. Well, to put it in context, the fed is undershot. It's 2% inflation target, but usually by just a few tenths of a point. I mean, inflation was around one 6 one 7, something like that for a long time. That's quite different from being far. Far from the target. The other problem was that many other central banks face the same problem is that after the early 2000s, interest rates generally were very low and the fed didn't have much space to cut rates because it hit zero. It was in response to that problem that the fed changed its framework and adopted this average inflation targeting approach that it put in place in 2020. Right, which is to be clear, you know, I'm going to paraphrase here 2% plus or minus. Give or take a little bit. Well, the idea being that if you can get inflation above 2% for a while so that on average inflation is at two, then people will begin to expect inflation to be around two. And that, in turn, again, will help build the fed's credibility and help control the inflation expectations so the fed will have less difficulty getting inflation back to the target over time. Help me understand why inflation expectations matter. You hear that so much now from fed officials and from economists. Why? Well, they matter. Because if people don't expect inflation to return to normal, it affects their behavior. For example, if firms, businesses think inflation, including the costs of their inputs and their workers, are going to continue to rise year after year. They're going to pass that through into price increases and be confident that they can continue to raise prices. And meanwhile, workers thinking that inflation is going to be high. We'll say, look, as in the 70s, you know, we need a cost of living adjustment. We need to have an automatic raise. And so that so called wage price spiral can be self fulfilling and it's very hard to break. One of the other differences between the vocal period or the great inflation and now is that inflation expectations in the 70s were all over the place. Nobody really knew what inflation was going to do. They knew it was going to be very volatile. But they didn't have any real confidence in that in turn. That made the economy less sufficient. This is perhaps an unanswerable question, but how long do you suppose the fed has before inflation expectations get out of control? Well, they're going to have to watch very carefully. I don't have an exact answer for you, but clearly they want to see inflation moving downward at a reasonable pace. One thing that's made their job more difficult is that on top of everything else, we've had recently some big increases in commodity prices such as oil prices and food prices. And people see gasoline prices and grocery store prices every week every day. And that is going to over time. That is going to seep into their views about how they think inflation is going to evolve. So we don't know how much time the fed has. I mean, I think if we don't see progress, then inflation expectations are going to start to become, as they say, unanchored, which would create a very strong reaction from the fed because their credibility is very important today. Could you define progress if we don't see some progress in inflation coming down, right? Right. Well, you know, the fed's guess, and I think it's a reasonable guess is that core PCE inflation, which is the inflation rate that they target at 2%, which is currently over 5, that they'll get that down to around four by the end of the year, something like that. And if in addition to that, we see some stabilization and commodity prices, then inflation will come down over the next 6 to 8 months, not all the way back to target, but in a way that people can see that things are moving in the right direction. Sorry, random personal interjection. You are retired now. Doing whatever you want to do in retirement. How closely do you follow core PCE and all the twists and turns? Are you still plugged in or do you go? I don't have to worry about it. No. I used to joke that one of the advantages of being an ex chairman is I could read the newspaper and say, gee, that looks like the serious problem. I hope somebody does something about that. But so I don't have the responsibility, which is obviously a relief. But I do follow very closely. But obviously, I don't have 300 PhD economists to.

fed
"ben bernanke" Discussed on Marketplace with Kai Ryssdal

Marketplace with Kai Ryssdal

02:11 min | 9 months ago

"ben bernanke" Discussed on Marketplace with Kai Ryssdal

"It might not. All right, probably doesn't. I know, feel like it, but we are still officially in a public health emergency, have been, in fact, since late January 2020. As of now, that emergency declaration runs through mid July, there have been calls for it to be extended, and it looks like it's gonna be. That is according to various people familiar with the matter, as the saying goes. Marketplaces Samantha fields reports on the economics of a public health emergency. To some extent, the fact that we're still officially in a public health emergency is about sending a message. There's a certain amount of symbolism attached to the declaration of a public health emergency. That's sort of a signal to the public that things are still bad. Larry levitt is with the Kaiser family foundation. But there are also huge implications for the healthcare system and government spending. For one, vaccines and testing are free because of the public health emergency. Many COVID tests and vaccines for kids are only available as long as they're still an emergency because they haven't been fully approved yet by the FDA. And as long as it's still in place, states can't drop people from Medicaid. The results of this have been huge. We estimate that by the end of this federal fiscal year 22 million more people will be in the Medicaid program. And then I think there's some really important benefits that I have enjoyed as a provider because it's been convenient for patients, including telehealth services. Doctor kavita Patel is a primary care doctor in Washington, D.C.. She says the public health emergency has temporarily loosened a lot of the rules that have restricted access to telehealth. So we have been able to expand telehealth services, being able to give care by video or phone in any geographic area. And that's not something we normally were able to do. She.

Samantha fields Larry levitt Kaiser family foundation kavita Patel Washington, D.C. FDA
"ben bernanke" Discussed on Marketplace with Kai Ryssdal

Marketplace with Kai Ryssdal

04:47 min | 9 months ago

"ben bernanke" Discussed on Marketplace with Kai Ryssdal

"In Los Angeles, I'm Kai rizal. It is Tuesday today at the 17th omega as always to have you along. Everybody, we give you today as a way to get things macro economically going. The American dollar, the global reserve currency, the almost universally accepted store of value. And as of late, the strongest it's been in a very long while. The dollar is almost at parity one to one. With the Euro, it's crazy strong against the pound Sterling and the Japanese yen we're talking 20 year highs here. And there is a temptation I get it to say that's great. You want a strong dollar, right? But right about there, market forces rear their sometimes ugly head. Marketplaces of revenge war is on the dollar desk today. So there are a couple of reasons the dollar is so strong right now. First, after years of easy money, the Federal Reserve is raising interest rates. When thin is global head of currency strategy at Brown brothers harriman. We saw this back post great financial crisis and we're seeing this now as we move past pandemic. Higher interest rates mean higher returns for investors and money goes where money grows. So that's been bidding up the price of the dollar. Second, you may have noticed things have hit the fan in a few places around the world, so the U.S. is looking pretty good by comparison. Is with BNY Mellon wealth management. There was the Russia Ukraine war. And then secondly, the zero COVID policy in China, when freaked out, global investors typically piled a cash into the U.S. for safe keeping. Again, bidding up the dollar. So what does that all mean for economies everywhere? Well, for the U.S., there is at least one clear benefit. It actually helps us with the inflation problem because the stronger the dollar is the lower input prices are. Vasily cerebral is an FX strategist at UBS. For the rest of the world, it is a real mixed bag. We are buying more of the world's goods, that's nice, but the things the world buys are getting more expensive. Commodities, for example, are priced in dollars. So if you're a country that needs to buy a bunch of oil or nickel or whatever, you're going to have to pay extra to convert your currency into dollars to buy it. Alan Robinson is with RBC wealth management. For the emerging economies that are commodity importers such as China and India, it's particularly impactful to have a higher dollar price for their commodities that they need to pull in. These analysts say the dollar is probably going to remain pretty strong for three months, maybe at the end of the year. In New York, I'm cerebral for marketplace. You need a whole lot of dollars to buy coal right now. The per ton price has been rising since Russia invaded Ukraine, and since the European sanctions on Russian colon response. Those sanctions, which were announced last month, take full effect in August, creating one might imagine an opportunity for big coal here in the United States. The thing is, though, the big coal, just ain't so big anymore. Marketplace is lily jamali explains how that's complicating the industry's chance to cash in on this moment. U.S. coal production is about half what it was when it peaked a decade ago. A lot of that is driven by the retirements of coal fire power plants in the United States, which was the major source of demand. Mark templeton of the University of Chicago law school sums up the state of U.S. coal this way. The industry is clearly in decline and is likely to be in continuing decline. Some mines, particularly across Appalachia, have shut down, for those still operating coal executives are passing on making big investments. Flora Champa is a research analyst at global energy monitor. The U.S. Kofi is quite old. It's limping along. It's really lost its power in the market. All of that has made scaling up right now when the economics are on the industry's side, tough. So are you going to hire someone for the next few months and then the price may fall again and what will you do with those workers? It's really time to manage the transition. There is no market for cool long term. That's the case in Europe too, despite the current surge in demand, as Europe moves off Russian coal, says Ian Lang, he directs the mineral and energy economics program at the Colorado school of mines. And so it's not surprising, right, that they would say, I don't think there's a strong buyer here, right? Maybe a bump for a few months, he says, but hardly a lifeline for an ailing industry. I'm lily Jamal for marketplace. On Wall Street today, I guess traders and the algorithms they love decided everything's fine, right?.

Kai rizal U.S. Brown brothers harriman BNY Mellon wealth management Vasily cerebral Alan Robinson RBC wealth management Ukraine Russia Federal Reserve China lily jamali Los Angeles UBS Mark templeton Flora Champa global energy monitor University of Chicago law scho India Appalachia
"ben bernanke" Discussed on Squawk Pod

Squawk Pod

03:12 min | 9 months ago

"ben bernanke" Discussed on Squawk Pod

"So Ben Bernanke, throwing probably a little bit of shade at some of the, some of the efforts to divest. I mean, it's interesting. He was throwing shade at the divestment itself saying you're not going to be very effective. University endowments are always doing stuff like that. It just means you're but then he's saying the government needs to do this more broadly on the other hand. Did he weigh in on the idea that some of the ESG proposals that are being pushed by governments in some areas by investors much larger than just university endowments, what that has meant for the lack of CAPEX spending in oil and gas production and why we are now. You didn't really touch on that in the way that I think some of the debate that we've had around this table, I think what he was focused on mostly was this idea that a lot of oil companies have said, we're going to divest of X drilling plant or this or that, and that that actually I don't want to say is fake, but all you're really doing is reshuffling the board, basically. Well, I mean, listen, to the point about ESG, you can be pros to your not whatever. If you sell all your stocks, you have no seat at the table. If you look at like a couch or a cowper's, they will say they would prefer to continue to own the equities. And I think Larry Fink is sort of come around on this. 'cause once you sell it, you're not a stakeholder, and you have no say in what the company does. You've effectively absolved yourself. That was actually always what does that mean? I was trying to do yourself. So by the way, I ran a poll. Yeah. I just tweeted this out. Just now? It's Sully CBC. I said, per Andrew Ross Sorkin's excellent interview with Ben Bernanke. Thank you so much. Continue on. And discussion about politics. Day more? Do you believe the fed is truly apolitical? We'll see how it comes out. So one of the things you've got to read the book because he does get an even though he's even though he says that the fed is not political. He goes through a lot of periods instead of they were. 80s under Greenspan, where there's all sorts of politics. He said in the earlier clip that he burns, Arthur burns, not Montgomery burns, he owns a nuclear plant. Yeah, Springfield. Arthur burns was basically just did Nixon's bidding. You know, it's actually fascinating to sort of see the full breadth of the fed in terms of how he analyzes it all. Did he get into anything at all about the political the politicalization of the fed in terms of whether that's part of the reason Jay Powell and company didn't raise rates sooner because he wasn't confused. That's specifically, I think you definitely feel throughout the book that there are moments when the fed has been very politicized and the pressure. He does talk about the pressures that people feel. But in fact, he thinks that right now the fed is actually in even a more credible place than even it was when he was when he was there. Now I don't know if people agree with that, but he thinks that the fed is now considering how polarized the country is. And by the way, we got into that at one point we were talking about the Supreme Court and everything else the whole country's politicized that the fed is one of the last bastions of independence if you believe that's the case. I just wonder like 50 years ago. How much people actually knew who the fed chair.

Ben Bernanke Arthur burns Larry Fink fed Montgomery burns Andrew Ross Sorkin Jay Powell CBC Greenspan Nixon Springfield Supreme Court
"ben bernanke" Discussed on Squawk Pod

Squawk Pod

03:50 min | 9 months ago

"ben bernanke" Discussed on Squawk Pod

"That they are not politicized that they are seen as trying to do an objective job that appropriately carries out the wishes of the Congress. And if they get politicized, it's not really helpful because then they can't get their leaders approved and they can't get their budgets and things just become all the more difficult. Go back. What do you think about using the strategic petroleum reserve? And releasing that. Do you think that that actually has inflationary effect? Does that have a deflationary effect? It has a small disinflationary effect, I think, by putting a little extra supply of oil in the market, but people know that at some point they have to buy oil to put it replace the world they took out. So that probably raises prices of oil. That fact probably raises the price of oil today because people anticipate that in the future the government is going to increase its demand for oil in order to replenish the SBR. So I would say that taking oil out of the SPR might have a small beneficial effect, but it's not going to be very big or very lasting. And then two other quick ones. We haven't really actually talked about Ukraine, Russia. I mean, we've talked about the impacts of it in terms of price. Putting on your economist hat, what do you think the impacts are going to be longer term on Europe and longer term on the rest of the world? Well, that depends the long term effects depend on how things get resolved. It seems like Europe and Russia are getting more divided. I think one of the things we're seeing from the pandemic and from the war is that supply chains are going to get shorter. People are going to start relying more on their friends and allies for key inputs. And that's going to be a little bit of a de globalization that's going to change the way that production is organized. So I think that's one thing that's going to happen. And what does that mean economically longer term? Well, on the one hand, if you're not doing the most efficient approach, it probably raises costs a little bit, it makes things a little bit more expensive. But on the other hand, it's good. I mean, a country obviously is taking a chance if it allows critical inputs, whether it's silicon chips or critical parts for airplanes or whatever it might be to be manufactured by in a country that might be hostile in some future situation. So I think that taking the national security considerations into account makes good sense. And I think that's one of the things that we're seeing. And it's going to, again, it's going to pull back a little bit the globalization. But without reversing it completely, but just pull it back a little bit. So that people feel more confident that they can access the critical inputs when they need to. And do you feel similarly about China? Yes, I think that there will be somewhat less dependent on China and president has said that explicitly, but I hope there won't be any effort to sort of decouple the completely separate..

Russia SPR Europe Congress Ukraine China
"ben bernanke" Discussed on Squawk Pod

Squawk Pod

03:00 min | 9 months ago

"ben bernanke" Discussed on Squawk Pod

"Hard for the bond markets to absorb. They wouldn't know if this was a temporary or permanent change. And people would become would come to think of this as a, you know, just another tool the fed can change at an FOMC meeting and might change more frequently in the future. I think that's not a good situation. What do you think the chances are that we fall into a period of stagflation? Well, a period of sex a year is certainly very possible. Because even under the benign scenario, we should have a slowing economy and inflation is still too high, but coming down. So there should be a period could well be a period. In the next year or two, where growth is low, below potential. Unemployment is least up a little bit. And inflation is still too high. And so you could call that stagflation. On the other hand, the term stagflation was invented in the 1970s, which was a period both a very high and persistent inflation for 15 years. And where growth was largely slowing, although we know now we figured out even then that a lot of it was due to things like slower productivity growth, which is not really under the control of the fed. So stagflation is a risk. But at the moment, it looks like any stagflation happens in the United States would be a relatively temporary phenomenon. How concerned are you about the inflationary effects on food prices? Well, one problem with the big increases in commodity prices, including oil, wheat, corn, oils, and so on. Is that people are very attentive to gas prices and food prices. Obviously, because they use these shop every week. They see these prices. So there's two reasons why this is particularly worrisome. One is that higher food prices create a lot of hardship. We still have hunger in America. We still have people who can't afford all the food they need. So that is obviously a very costly. The other thing from a more fed oriented point of view is that again, as I mentioned before, you want people to have confidence that inflation is going to come back down. You want your inflation expectations to stay well controlled and that will actually help the process because they won't be asking for outsized wage increases, for example. But if they see gas prices and hamburger prices and the bread prices going up every month by a rate of 10% a year or something like that, that has the risk is there that that's going to shift their thinking and make them more willing to engage in a wage price spiral where workers demand higher wages and higher wages cause higher prices and so on..

fed FOMC America
"ben bernanke" Discussed on Squawk Pod

Squawk Pod

04:37 min | 9 months ago

"ben bernanke" Discussed on Squawk Pod

"Pod and we're talking inflation and America's economic future with the former fed chair, Ben Bernanke. What is your Ben Bernanke house view of whether we may have a recession next year? Well, let me preface that by first saying that economists are notoriously bad at predicting recessions. I think it depends. First of all, let me just say that the more the fed has to tighten in order to get inflation down the bigger the chance of a recession and the more severe it will be. How much the fed has to tighten depends in turn on what happens to these factors they can't control, like the supply chains and the commodity prices. So that prediction requires to make a prediction not only about the fed's behavior, but a lot of other things that Ukraine war, et cetera. So it's a very hard thing, very uncertain thing to say. I guess that I still tend to believe that some of these forces pushing up inflation like the supply chains like the preference for durable goods over services. And some of the commodity price increases gas prices and so on. That they will at least stabilize and begin to moderate sometime during this year. Which would mean that inflation will come down to some extent, let's say by itself, but without the fed's direct intervention. If that happens, the fed would have to raise rates, perhaps moderately above neutral, say in the three somewhere. When they do that, they'll slow demand, but as Jay Powell has pointed out, the economy is pretty strong. We're not going into a recession as often as the case with a troubled economy when in fact the underlying economy as we recover from the pandemic is quite strong. We have a very strong labor market, for example. We have strong financial system. We have strong balance sheets. So if the inflation slows as I expect it ultimately will, although I've been disappointed about how slow that process is, then the fed should not have to raise rates too far and what we would get then would be a slow day slowing of the economy, maybe even a stall, but not a severe recession..

fed Ben Bernanke Jay Powell America Ukraine
"ben bernanke" Discussed on Squawk Pod

Squawk Pod

05:36 min | 9 months ago

"ben bernanke" Discussed on Squawk Pod

"2006 to 2014, he oversaw the response to the financial crisis of 2008 and the Great Recession that followed. He also monitored the U.S. economy through two different presidential administrations. So, as American consumers manage rising prices at virtually every checkout counter, and as the markets go haywire, like they did last week, some folks on Wall Street, Main Street, and Capitol Hill worry about the likelihood of a recession. Then Bernanke's using history to cut through the noise. Here's Andrew, in the former fed chairs living room. Thank you for being here. Well, thank you for I shouldn't say thank you for being here. I should say thank you for having us here in your home. Welcome. You have this new book. And what I wanted to understand from you was why now for you in terms of writing this book and what is important today, do you think most about looking back at that period to reflect on where we are? Well, it's always been part of my approach to use history to help inform current policy. So when I was chaired during the financial crisis, I looked back at my work on The Great Depression. And I found that I knew that The Great Depression had been caused basically by two things. One was very tight monetary policy, which led to falling prices. And also to the collapse of the financial system. And I said, you know, I'll make many mistakes, but those are two mistakes I don't want to make. And so we worked to try to prevent the collapse of the financial systems who have wide variety of tools, some which were a controversial under the radar. And then on monetary policy, we were we introduced quantitative easing and so on in order to try to provide support for the economy to recover. And now every episode, every period has its own challenges. And so now we have a pandemic. We're coming out. I hope the pandemic is created a whole new set of challenges, new inflation is a problem. And I don't know the answers to all these questions. But I do know that it's useful to look back at what former chairs, former Federal Reserve officials, both here and I often look at other countries as well, how they responded to similar situations. I think it's a really useful way to get a mature view of how to respond to these kinds of problems. Okay, so let's go through a bit of it..

Capitol Hill Bernanke Depression Federal Reserve Andrew U.S.
"ben bernanke" Discussed on Squawk Pod

Squawk Pod

01:56 min | 9 months ago

"ben bernanke" Discussed on Squawk Pod

"Today, on a special, supersized squawk pod. Former chair of the Federal Reserve Ben Bernanke. He oversaw the financial crisis of 2008, and now he's weighing in on the fed's current fight against inflation. Why do they delay their response? I think in retrospect, yes, it was a mistake. And I think they agree it was a mistake. Bernanke on Bitcoin, wealth taxes, and using history to see the big economic picture. In fact, the underlying economy as we recover from the pandemic is quite strong..

fed Ben Bernanke Bernanke
A Look Back at the Great Financial Crisis of 2008

The Charlie Kirk Show

02:02 min | 1 year ago

A Look Back at the Great Financial Crisis of 2008

"So in 2004, 5 and 6, you saw the housing boom, largely thanks to Fannie Mae and Freddie Mac. Thanks to the negligence of our own quote unquote housing regulators, cheap money policies from Washington, D.C., buying up bad mortgages and incentivizing people to do the same. We built an entire economic model on a House of Cards of people that were bar waitresses earning cash tips that had three homes, two of which they've never visited because people were incentive incentivized to go to low income neighborhoods and sign up people for as many mortgages as they possibly can. We all know what happened next, which was the great financial crisis, Lehman Brothers, bear Stearns, and for the first time ever, despite the insistence of Jim Cramer, those companies went under. In the years that followed 2008 and 2009, our leaders were faced with a tough decision. You see, the 2000s saw an economic boom the likes of which we never thought was possible. Now what our leaders decide to metaphorically take the cough syrup, tighten the belt, tell Americans that we're not going to indulge in this continual behavior of deficit spending and debt mounting on future generations, of course not. Barack Hussein Obama won the election in the fall of 2008 was sworn in in 2009 and Ben Bernanke then Federal Reserve chairman, Hank Paulson treasury secretary and Timothy Geithner under treasury treasury secretary three awfully treacherous people if you asked me all decided, hey, let's just keep interest rates low. It's not like we're going to experience long-term inflation. And then we saw a stimulus package passed by Barack Obama, a then 850 to $900 billion stimulus package. It was passed as the national recovery act after that Obama passed ObamaCare, a takeover of the American healthcare industry. Debts and deficits continued to sword, and then a couple years later, I started to get

Freddie Mac Fannie Mae Jim Cramer Bear Stearns D.C. Lehman Brothers Washington Treasury Treasury Barack Obama Hank Paulson Ben Bernanke Timothy Geithner Federal Reserve Treasury
"ben bernanke" Discussed on Bloomberg Radio New York

Bloomberg Radio New York

03:05 min | 1 year ago

"ben bernanke" Discussed on Bloomberg Radio New York

"Bloomberg opinion informed perspectives and expert data driven commentary on breaking news It's 9 21 in the city time to check in with our opinion we're joined by opinion columnist Dan moss who's writing about why raising rates isn't a silver bullet for fighting inflation I mentioned he's coming to us from Australia Actually Daniel in Singapore Sorry you are I believe Australian and I'm watching the rates explode there It's amazing to look at how much the two year has gained from basically ten to 80 basis points and a few sessions And the ten year yield is up 24 basis points What's happening in Australia What's happening in Australia that needs to be seen in the context of what's happening globally There is a push by investors to challenge the intellectual and political capital that's central banks invested in the two low inflation argument for years and years The reserve bank of Australia was among them Just last year the government said we're no longer interested in forecasts that inflation We've gone to actually see it Okay now they're getting some What happens next They have a board meeting next week There is a widespread expectation They will dismantle or at least chip away at yield curve control But they're still these near zero 8s and quantitative easy Inflation the tools used to combat the pandemic and to raise inflation from levels that were let's face it not that long ago things being too low they're not ready to throw them overboard So you've got this tension and what's happening in Australia it really is a reflection It's a window it encapsulates the struggle for tussle that's going on right now pretty much everywhere What are the tools they have I mean I remember speaking of the financial crisis watching Ben Bernanke in I believe it was 2010 on 60 minutes saying deflation is a problem inflation is NBD We can easily stop inflation on a dime Is that the case So central banks do have experience that onboarding inflation that is too high But the nuance there is that they haven't had to yet sacrifice growth to do so Arguably since the bulky era in the guidance So when people say oh they'll never let inflation get out of control Well look that's based on assumptions that perhaps have been held in the professional careers of managers Just go back into history But there's another way of looking at that And that's the second part of what I just mentioned which is.

Dan moss Australia reserve bank of Australia Singapore Daniel government NBD Ben Bernanke
Deal on Fed removes obstacle to agreement on COVID-19 relief package

Marketplace with Kai Ryssdal

04:15 min | 2 years ago

Deal on Fed removes obstacle to agreement on COVID-19 relief package

"There are two things going on with this two point three trillion dollar package. Congress is working its way through and the fading hours of this year one point four trillion dollars to fund the government through next september and nine hundred billion dollars in pandemic economic relief. It looks like and one stress is looks like because you never know but it looks like the thing is gonna pass and we're going to talk about what's in it through the program today but over the weekend. There were some hiccups. The biggest of which centered on the federal reserve. and what it will and won't be allowed to do genus. Molly covers the fed for the new york times. Also she is a regular here on friday. Hey gene hey so in. Lay person's terms here if i might What was the up. With the fed and senator toomey and the feds authorities so basically the fed did a couple of emergency lending programs in this crisis that it has never tried before it bought corporate bonds it bought municipal bonds and it lent directly to small size businesses via banks and so all of those programs were real sort of departures. From what we've seen in the past in senator. Toomey wanted to make sure that they couldn't happen again. He said that congress had intended for them to only lasted twenty twenty one and so he inserted language into this bill that would have basically prohibited them or anything similar to them from ever happening in the future. Without congress. congress's approval. Compromise was what the compromise is that we made that were similar. Same which sounds pretty simple right down like a big deal but it was a big deal. Because i think the way that similar could have been interpreted is to mean that basically any sort of credit like program would be impossible in the future. The way democrats are painting the word same means that specifically these exact programs set up precisely the way that these ones were set up cannot just be restarted. Once you know the next treasury secretary presumably janet yellen who's likely to be the nominee for that job is in place next year. And so the idea is. You can't have this immediate copycat but you could potentially do something. That looks a little bit like this way down the road if there's another financial crisis will that's my next question right. This is really about the crisis next time because there is another one come in as we know right and i think it's it's you know it's worth noting that some of these markets at the fed intervened in this time municipal bond market. I think being a good example. They were melting down in march. You know the the fed stepped in and and gotham tour again but there was a moment there where it was looking pretty dicey in corporate bonds and municipal bonds and so the idea that this legislation would just take away all of those powers. I think could definitely raise some concerns among people certainly who work markets but i think also people who are concerned about you know who has crisis fighting power who saves us first. How much what was going on here was about fed independence and its ability to do what it sees is right. I note that Chair powell has not said a word We had rob kaplan from dallas on On friday and he ducked my question on at. Your brunetti actually said something over the weekend. Right right i think the fed has been caught in some political crossfire here. And what i mean by that is democrats. Have kind of been eyeing these facilities that the fed set up this time and thinking about how they could enhance them to make them more generous once. They're in office. And so the idea is you could potentially use things like the municipal program to really funnel cheap money to states and localities. Now the problem is all of your listeners. Will be aware is that democrats tend to be much more concerned about those constituents than republicans are and so the idea is the fed could be used for political means in. That's why senator to me was really concerned about the future of these programs I think the fed basically wants to stay out of the political conversation here. The important wants to gets missed is they would have had to agree to that. Sweetening up of the municipal facility But yes they got caught in the crossfire. Little ben bernanke you wait into say. Hey don't take away powers. The fed used to have and that it needs but even his statement was done in very a political terms. I think you very very burnett elect terms genus alex. She covers the fed of the new york times and here every now and then on a friday june. Thanks a lot appreciate. Thanks so much

FED Senator Toomey Congress Janet Yellen Toomey Molly The New York Times Chair Powell Rob Kaplan Government Treasury Brunetti Dallas Ben Bernanke Burnett Alex
Are Negative Interest Rates Coming To The US?

Houston's Morning News

05:35 min | 2 years ago

Are Negative Interest Rates Coming To The US?

"Negative interest rates coming there is a better economist the fed economists I should say in Saint Louis the one wrote in a paper that if we want to get a V. recovery we need to look at negative interest rates so is the fed going to look at that and I wonder I wonder if Jerome Powell is willing to go along with that idea join us to talk about A. K. T. R. H. money man patch in what's the likelihood of negative interest rates back well in a very good morning to you jamming in fact let's just mention real quick when we look at interest rates remember there's an entire spectrum of interest rates that run anywhere from overnight all the way up to thirty years we call that spectrum a yield curve the federal reserve today directly sat the overnight lending rate and I guess I should say in a normal environment the market they set up all of the other rates two year five year ten year twenty year thirty year but right now the federal reserve is directly influencing all of those rates because they're going into the open market and they're buying up all of these bonds so the chance of a negative rate is very very very low federal reserve chairman Jerome Powell has been asked this question before he's against it for a couple reasons one Germany and Japan currently have negative interest rates along their curve not all the rates but if you go out to to say ten years on Germany as an example their their rate is negative same thing for Japan or their rate in Japan is zero so don't pal points out Europe and also Japan and says look it hasn't really worked out hasn't done anything to stimulate the economy the other thing is that it makes it tougher for banks to make any money if rates are actually negative in fact it may cause banks to lose money and so Jerome Powell has come out against it yeah really the interest rate really it has an effect on consumers but it's really all about the banks and trying to keep the banks open to making money by lending money and getting it to the people correct you you are absolutely right Cher and I should mention that you know right now we are seeing and on believable I mean off the charts amount of stimulus coming in people are scratching their head wondering why the stock market's been going up in spite of record bad news and right now the federal reserve is you know going into the open market every day and they're buying up various assets now they don't buy stocks but they buy primarily government bonds to keep interest rates you know very very low they're now buying corporate bonds and they're buying tax free bonds and so the federal reserve has been going on on a daily basis and buying up all these assets I think one very very big misunderstanding that I see basically everybody get wrong is when you see this being discussed on television they show a printing press they show hundred dollar bills going across on a big printing press and being wrapped up on a pallet it's important to know all the programs that the federal reserve is doing right now do not require printing any money instead banks remember banks are required to keep money on deposit at the federal reserve the fed is simply borrowing money from these banks but right now you can actually go on the way out of the federal reserve discloses that daily right now the federal reserve has assets on their books right now of over seven trillion in dollars yeah you know but the hundred dollar bills looks so good on TV packs got me going let's let's talk a little bit Jimmy there are and you would be a I'm yes you would be able to come up with a dog absolutely I got special scissors does for that matter all right let me quickly ask you about mortgage interest rates hearing fifteen year loans are as low as two and a half percent right now the housing market is doing surprisingly well what we think is going to happen with mortgage interest rates accent so yep and so the federal reserve is targeting rates that was one of the thing that former fed chair Ben Bernanke dead back after the financial crisis in oh wait or no nine and it worked really really well and so right now you've got rates at record lows we think they're going to stay low for a very long time if we do see the economy start to pick up in the third and fourth quarter and we see longer term interest rates start to move up the federal reserve will use some of their ammunition and go in and buy up bonds in the open market in order to keep interest rates down so of all of the things that we could look at and do right now it is a wonderful wonderful time to refinance a mortgage not every loan is is is going to be favorable to refinance remember you've got to pay for a number of up front tight cost things like the title policy but you would want to call a mortgage professional and ask them if it makes sense to refinance and specifically asked how long do you need to go before you reach the break even point yeah and you generally have is what lesson five years you're good good to go yep if you're gonna stay in the house for longer than that sure you're exactly right it may be two years and you're only going to stay there for a year well then it wouldn't make sense but that look and find out when the break even point is when it it it pays to refinance

Saint Louis FED
The Federal Reserve provides relief but pain still coming

Squawk Pod

00:59 min | 3 years ago

The Federal Reserve provides relief but pain still coming

"The White House and Senate leaders have reached a deal on a massive two trillion dollar stimulus to combat the economic impact the corona virus outbreak. In addition the Federal Reserve has taken a number of steps to stem the damage and keep markets functioning. And that's where we're focusing. Today's podcast the Fed what it's done and what it can do. As the nation's central bank among the moves is an open ended commitment to continue buying assets under its quantitative easing measures there are also multiple other programs including one for main street business lending the small businesses and community and yours that are closed due to the corona virus. Shut down and others aimed at keep credit flowing. The Fed will be moving into corporate bonds for the first time purchasing investment grade securities in primary and secondary markets through ETF or exchange traded funds additional measures include the issuance of asset-backed securities. These are backed by student. Loans AUTO LOANS CREDIT CARD loans loans guaranteed by the Small Business Administration and certain other assets.

Federal Reserve Small Business Administration White House Senate
Whatever It Takes: How the Fed Aims to Rescue the Economy

This Morning with Gordon Deal

02:15 min | 3 years ago

Whatever It Takes: How the Fed Aims to Rescue the Economy

"How do we make sense of these different interventions but Congress and the federal reserve to limit the damage to the economy by the new coronavirus and the government restrictions that come with it Liz Claman anchor of the claimant count down on fox business is here to explain in depth Liz what's the fed done here in the past you had former federal reserve chief Ben Bernanke talk about helicopter money where you just dumped a dollar bills from a helicopter obviously he was joking around that with in the past during the financial crisis this is more like that three one thirty cargo chat opening the polls and dumping failed but money and so how I know it's designed to help the financial markets right but there are millions Americans aren't even in the stock market all why should they care well they should care because they have possibly four oh one K. they've got pensions they've got maybe five twenty nine there it also is the reality where they have bank accounts and make the money market so what the federal reserve chairman J. Jerome Powell police said was a whatever it takes moment and signaled the central bank signaled that they would do just about anything extending loans to both big and small businesses they would buy unlimited amounts of government debt to help the American economy because the American calling upon me is really based on funding markets it's hard to explain but medium to large sized businesses when they make payroll it's not from the cash they have in their coffers they borough on over night called the repo market or the overnight fed funds futures one big except try it's very complicated but it for overnight to make payroll and pay vendors and once the money comes in from their revenue what they're selling to the customers and we filled the coffers so if you have the the so called commercial paper market a product called start to freeze up which is what we saw during the financial crisis that could become a complete and utter disaster so what you're seeing now with the bed basically turning itself into a commercial bank instead of a central bank typically took one example but he

Congress Fox Business Liz Claman Ben Bernanke Federal Reserve Chairman J. Jerome Powell
Whatever It Takes: How the Fed Aims to Rescue the Economy

This Morning with Gordon Deal

02:15 min | 3 years ago

Whatever It Takes: How the Fed Aims to Rescue the Economy

"How do we make sense of these different interventions but Congress and the federal reserve to limit the damage to the economy by the new coronavirus and the government restrictions that come with it Liz Claman anchor of the claimant count down on fox business is here to explain in depth Liz what's the fed done here in the past you had former federal reserve chief Ben Bernanke talk about helicopter money where you just dumped a dollar bills from a helicopter obviously he was joking around that with in the past during the financial crisis this is more like that three one thirty cargo chat opening the polls and dumping failed but money and so how I know it's designed to help the financial markets right but there are millions Americans aren't even in the stock market all why should they care well they should care because they have possibly four oh one K. they've got pensions they've got maybe five twenty nine there it also is the reality where they have bank accounts and make the money market so what the federal reserve chairman J. Jerome Powell police said was a whatever it takes moment and signaled the central bank signaled that they would do just about anything extending loans to both big and small businesses they would buy unlimited amounts of government debt to help the American economy because the American calling upon me is really based on funding markets it's hard to explain but medium to large sized businesses when they make payroll it's not from the cash they have in their coffers they borough on over night called the repo market or the overnight fed funds futures one big except try it's very complicated but it for overnight to make payroll and pay vendors and once the money comes in from their revenue what they're selling to the customers and we filled the coffers so if you have the the so called commercial paper market a product called start to freeze up which is what we saw during the financial crisis that could become a complete and utter disaster so what you're seeing now with the bed basically turning itself into a commercial bank instead of a central bank typically took one example but he

Congress Fox Business Liz Claman Ben Bernanke Federal Reserve Chairman J. Jerome Powell
Leadership During Difficult Times

The Strategerist

08:09 min | 3 years ago

Leadership During Difficult Times

"Guest on this episode of the strategic is Keith Hennessy. These days he teaches at the Stanford Graduate School of Business Stanford Law School and his leadership fellow at the Bush Institute where he's teaching our leadership program sessions during the Bush administration. Though Keith was the assistant to the president for economic policy was the director of the National Economic Council during the financial crisis in two thousand seven and two thousand eight so those days Keith was working around the clock to blunt the impact of that financial crisis on on our economy. So we thought it'd be interesting today to hear about that experience while we're reacting to the cove in nineteen pandemic. That's happening right now. Keith thank you so much for taking time while your social distancing to call in happy to help hello from Palo Alto California. Well first off. Can you paint a picture of what it's like to be a decision maker in government during a time like this because I know right now? I'm watching the news. And there's just a constant stream of information things are changing by the minute and some of it is is fact some of it is conjecture. Some of it is somewhere in between. What's that stream of information like inside the White House and in our government? Yeah well an advantage. You have when you're working in the White House is that you get you. Get the best information that's out there. I always joke that one of the wonderful privileges. You can pick up the phone call pretty much anyone in the world and say. I need to help the president understand about your area of expertise. Can you spend some time with me? The person will always say yes. And then you have. You have a tremendous Roster of experts working in the government and then also outside of government Who can help feed you information? So the information tends to find you and if it doesn't you've you've got a team of talented people who can go find out The best available answer to any question. That's out there but there definitely is sort of a fog of war we're You think you know what's going on and you probably have a better picture than almost anyone else But there are a lot of unknowns. There are a lot of things that You know that you're just making educated guesses at so that's tough in hindsight This is one of the big mistakes. In terms of historic analysis is in hindsight. It is very easy to forget the things that now seem obvious. But we're not obvious time You know the biggest mistake about hindsight announces at the time. You didn't know what was going to happen next. And while you thought you knew what your actions and decisions might Might produce you're not always certain And then the other thing is is stressful And so you learn how individuals react to stressful environments and then you learn how teams React to stressful environments and you know I think it also depends on how long the crisis Lassen how long the pressure is applied. It's one thing to be in a stressful situation for days and weeks. It's a whole another thing to be in it for weeks and months and wears on people and In overtime that takes a toll because the people who are making these decisions are after all humans right. That's actually kind of interesting. And and so how? How do you keep team functioning under these kind of in under this kind of situation? And where might we might be doing this for a long time? Yeah I'm not sure I have many tricks. We were in in one respect. We were fortunate in that the the financial crisis in two thousand eight hit in year eight. So of the Bush team We knew how to operate as a team. We knew how the mechanisms of governments worked on a lot of US had four or five or six or seven years under our belts working for this president working with each other So we had those advantages of experience and know each other and frankly had a really good team In that last year With with Hank Paulson sort of as the the field. General for the president with Ben Bernanke over at the Fed and Kevin Warsh And with a lot of amazing people internally and so that teen Kinda you know it means that you don't have to worry about those aspects of it. You can just focus on the crisis of hand. So we had a bunch of pros. We had a bunch of pros. Who knew how to work together. And then you know you just you kind of say look. There will be time to sleep and time to rest on the back end of this. We're just going to keep pushing basically because we have to. I think the other thing is the morale is really important and and Bush thing. We were really fortunate because the morale comes in large part from the president You know the morale and the tone I always say that the tone in the White House is eighty percent set by the president and twenty percent by the White House Chief of staff and we had a president and a chief of staff who were creating a tone and environment where the rest of us didn't have to worry about the politics We could basically just focus on. What was the? What was the best policy? And how do we try to make it happen? So then you mentioned the that you knew how the government works and the government with all of its departments and with experts who sometimes have competing priorities. So in general strokes. Can you talk about how to how these departments all work together and coordinate during a crisis like this? Well that's what the White House policy councils are for. At the time we had four of them there are now three In the White House of the National Security Council is the granddaddy of them all And the National Economic Council in the Domestic Policy Councils And I worked in a on the National Economic Council staff so these are people who work in the White House for the president and Their job is to coordinate policy making in their in their area for the All the information that comes in for the president goes through the Policy Council to sort of structure. It make sure the presence president knows what's going on and what that best information is and in particular because the president has got a lot of advisers each of whom is responsible for looking at a part of the problem and the Policy Council Stash. Job is to make sure that the president has the information that they need to look at the whole problem. And so when you run one of these Policy cancels you get very good at running meetings and conference calls to pull all the advisers together To to compare information to figure out what decisions the president to make and then to make sure that the president hears from all of you know his advisors that he needs to we. We would joke that. Our job was to set up clean fights cleaner where you'd have conflicting advice. The you know one team advisors would set a precedent you do X. And other advisers would say the president should do why you. WanNa make sure the president gets the information. He needs so that he can make that decision and then when he makes the decision that everybody throughout the executive branch actually executes. Does what the president wants to do right so you would actually present. Exxon wide both team ex ante y presented the president. Let him make that decision. Yeah and I shouldn't describe as really two teams that a mismatch speak mistaken. Are My these are. These are different advisors who were all part of the president skiing. But right right right just disagree on a particular question and You know these. These decisions are hard. None of the options are particularly good. Because you're always over constrained But there are just different. Trade offs different choices that the advisers would make. And what you WANNA do. Is You want to hear the president. Have the president here. Those arguments be able to push the advisers. And then say okay. Here's what we're going to do You know the privilege of working for the president. Is You get to be in the room to make the argument or the option that you think you should make. And then when he hasn't sides it you've got to go out there and execute even if he went with The other option one that you didn't recommend be interesting thing about the financial crisis is that there were a lot fewer disagreements about what to do among

President Trump White House Assistant To The President Keith Hennessy National Economic Council Bush Bush Institute Stanford Graduate School Of Bu Palo Alto California Policy Council United States Exxon National Security Council Director Hank Paulson Ben Bernanke Kevin Warsh
Fed's Powell affirms rate cut

Marketplace with Kai Ryssdal

02:50 min | 3 years ago

Fed's Powell affirms rate cut

"If it is safe for you to do so at the moment and and you happen to have some loose change in your pocket or your purse toss a coin for me. Would you heads the economy is fine tales. The Fed is going to cut rates at the end of the month. Yes a trick question because both are true but that's only half. Maybe a quarter uh of the story here for the rest of it are Catherine Pell. She writes for The Washington Post. City bready is at politico. Hey Everybody Hey Katherine. Let me start with you <hes> and and put put this question to you. The Fed Chairman Jay Powell went to Capitol Hill Hill today said in essence the American economy is fine were a little worried about global headwinds and so we're going to cut rates because why because there are those risks out there <hes> including <unk> as you pointed out global headwinds trade policy uncertainty he talked quite a bit about that <hes> at the prompting of members of Congress well <hes> so there are risks out there <hes> the headline numbers look good but the goal of the Fed is he put would it is to prevent us from getting into a recession to to keep it looking pretty good not to wait until things get so bad that <hes> that it's a little bit too late for the Fed to catch up and try to make things better she deep the cynic in me says you know he's doing this because the market wanted the market expects it and what the market wants. The market gets from the Fed. Yeah some people think he's being bullied by market. Something pissing people think he's being bullied by Donald Trump <hes> and J. Paul would love nothing more than to just say you know everything's fine. Everything's going to be fine markets. Go Away trump. Go Away. Leave me alone. We've got a strong economy going here but he he's already seeing signs of trouble. You see in the bond market signs of trouble classic Nick Indicators of a recession at some point in the next eighteen months. We're seeing it in global trade data suggesting that a recession could be around the corner. None of this means that it's absolutely going to happen but this is a risk management approach that a central bank needs to take so deep. Let me stay with you for a second really quickly on this and and the terms relations with Congress it was clear that for all of the president's <hes> sniping at the Fed and the chairman that he appointed <hes> the members of Congress that <hes> question the the chairman this week have his back back full stop yeah. They don't like the Central Bank chairman being bullied by the president. They don't like the idea that everything is going to be a political game with political manipulation especially in this environment where the president doesn't seem to be trying to do that all over the place and so they're they're trying to stand behind him and say do what you think is right. It's a very different situation. Ben Bernanke and Janet Yellen would have loved to have this from <hes> Republicans to say you know what we trust you follow the data. Do what's right but at least J. Paul has that now

FED Chairman J. Paul Congress Catherine Pell President Trump Donald Trump Jay Powell Capitol Hill Hill Ben Bernanke Nick Indicators Katherine Janet Yellen The Washington Post Eighteen Months
The Fed was unusually chatty Tuesday

Marketplace with Kai Ryssdal

02:01 min | 3 years ago

The Fed was unusually chatty Tuesday

"The marketplace number oh, the day this Tuesday is five five members of the Federal Reserve's open market committee. That's the one that gets to decide interest rates. Remember five of them gave public speeches today. And believe me when I tell you for the fed that has a whole lot of talking central bankers have non at least historically been the most say, what's on your mind group of people that has been changing those we've been reporting and as marketplace's Mitchell Hartman tells us today, it has potential upsides and downsides back in nineteen Ninety-six. Then fed chair Alan Greenspan, uttered, the words irrational exuberance in a speech investors thought he was saying stocks were overvalued and the market tanked, probably not what Greenspan intended. But he did want to be opaque, says economist Frederic Mishkin, who served as a fed governor in the mid. Thousands. Michigan says one time after testifying to congress. One of the congress, people said that was very clear and Alan Greenspan, said, well, then it must have been a mistake. But under the next fed chair, Ben Bernanke transparency and frequent communication became guiding principles. That's continued under his successors. If you can get the markets understand how you react to future events that can actually make things monetary policy of warfare, active. A lot of what current chairman Jerome Powell. Communicates says university of Michigan economist, Betsey Stevenson is to reassure us that the feds got. It's all on the ball and on the news. Oh, and they're aware that obviously, the trade issues had the potential to have a big impact, so they're watching it really closely chairman Powell does have to contend with one communications challenge. His predecessors didn't says, dean Baker at the center for economic and policy research, and that's a president who publicly criticizes the fed POWs going to bend over back. Quds to say, we're not gonna listen to the present telling us to lower rates not Baker says, if economic conditions warranted Powell won't hesitate to cut rates and explain exactly why.

Alan Greenspan Federal Reserve Jerome Powell Dean Baker Ben Bernanke Chairman Michigan Frederic Mishkin Mitchell Hartman One Communications Congress University Of Michigan Betsey Stevenson Quds President Trump
Fed holds line on rates, says no more hikes ahead this year

Tom Sullivan

06:26 min | 4 years ago

Fed holds line on rates, says no more hikes ahead this year

"Our buddies over at the Federal Reserve. Nice big fancy lunch yesterday today two day meeting, and they came out and said no interest rate hike, not only no interest rate hike today. But no interest rate hike probably for the rest of the year. They're not I mean, they're not guaranteeing that. But they signal that they will not raise interest rates anytime this year. This is a big turnaround from where they were just a month ago. So this was eleven of the seventeen officials who vote on this said, the fed should not raise interest rates at all this year. That was the only two of them said that in December. So went from two to eleven of the seventeen or basically, a majority said, Nope, we don't need. We're going to turn around our policy. We are not going to raise interest rates at all this year. The remaining six officials said well, maybe one between one and two increases would be needed. So what this is saying loud and clear is things are slowing down. They're worried about the economy slowing down, and they don't want to be the one. Pushing us over the over the cliff. So they're the more. They raise interest rates things. Become more expensive. Borrowing is more expensive for businesses. So for businesses to grow and expand and hire more people. They a lot easier for them to do. So interest rates aren't climbing the other part about this. Is there's there's the interest rate projection. But there is another part to it. Which is they during the past two thousand eight recession. The great recession. They went through the process. This is Ben Bernanke as days of buying four trillion dollars worth of treasuries. And what that does is they they buy them from the banking system the banks that make up the membership of the Federal Reserve Bank. They buy them from them. So what that does is they give to the banks more cash. Well, if you're walking in the door, and you say, hey, I would like to get a loan for fill in the blank, whatever your reason is if the banks have lots of money, the only way they can really make money on it is to lend it. So they got boatloads of money that the fed is pushing at them you walk in the door and say, I want alone, the the chances of you getting that loan are much higher your credit worthiness. Doesn't need to be perfect. There's a lot of reasons why they will make that alone in what they got lots of cash that they won't make another days if the fed is tightening. And that's what they have been doing over the last year and a half or so that means you walk in the door, and they don't have as much money. They're making the the banks by the treasury's back from the Federal Reserve, the banks don't have as much money sitting around you walk in the door and say, hey, I like alone, and they said, well, let's size you up. Let's see whether or not we're gonna make you alone versus other people that we're going to that are asking for loans. We're only going to make loans to the very best credit worthy. Most biggest chances of being paid back without any defaults. So what the fed is doing is. They are a not raising interest rates and there signaling they're not going to raise them for the rest of two thousand nineteen. And they are. Slowing down the pace of the runoff of these four trillion dollars worth of treasuries that they have. And because they've been they've been pushing them back to the banks and the banks have had to buy them. They don't have a choice or member member of the Federal Reserve Bank. So they're saying, okay, we're going to slow down that. And then we're going to end that runoff program in September. Which will be exactly two years after they started it. So I lower people pay attention to the interest rate. But I think that big fat four trillion dollar portfolio of treasuries. They have is been shrinking. But that has a lot more to do. I think with whether the local Bank is going to give you alone or not give you alone the interest rate, so they can go in and maybe the interest rate is climbing, and you go, okay, but I can afford a little more I can pay a little more interest. But the Bank is not going to be interested interested in making loans if they're having to buy back four trillion dollars worth of treasuries from the Federal Reserve Bank. So I think this is. This is is saying. They're not worried about inflation. And they are worried about the pullback in financial risk-taking. And they are concerned about Europe in China slowing down and they're wondering how long the United States can be an island of growth when two of our giant trading partners are shrinking. So this is this is the fed saying loud and clear that they are going to. Pay attention to what's going on around the world. So for right now, it's a big pause. Rates aren't going down. But it does bring up the question of whether or not. The fed will maybe before the end of the year drop interest

Federal Reserve Federal Reserve Bank Ben Bernanke Europe Treasury China United States Four Trillion Dollars Four Trillion Dollar Two Years Two Day
Fed's Powell says no immediate policy responses needed to economy

CNBC's Fast Money

01:03 min | 4 years ago

Fed's Powell says no immediate policy responses needed to economy

"CBS has just announced that Jay pal. The fed chair is going to be on sixty minutes this weekend in an interview that has already been recorded of CVS saying that pal sat down with CBS is Scott Pelley this week in Washington DC for what they're calling a wide ranging discussion that includes the fed chairman's remarks on interest rates the outlook for America's economy, and whether the US financial system is vulnerable to. Attacks. They also say that because the interview is on the at comes almost ten years to the day since Pelly interviewed then fed chairman, Ben Bernanke during the great recession, Burnett Anki and his successor Janet Yellen appear in the interview alongside pow in one of the interviews for the report to discuss how they advised him to handle the job and the criticism that comes with it that will obviously be fascinating viewing. And so interesting to see whether or not they discussed the criticism from here at sixteen hundred Pennsylvania Avenue from the president of the United States who's been very critical of J pals approach to handling interest rates at the fed. We'll see whether they get into that at all in the

FED Jay Pal CBS Chairman United States Scott Pelley Ben Bernanke Burnett Anki Janet Yellen Washington President Trump America Pelly Sixty Minutes Ten Years
US Shutdown and Brexit: 2 governments paralyzed across the pond

Investor's Edge

02:32 min | 4 years ago

US Shutdown and Brexit: 2 governments paralyzed across the pond

"June twenty third two thousand and sixteen. Brexit was voted on. They still can't figure out what the hell is going on in the UK. We are on day. I don't know twenty six twenty seven on our shutdown. It looks like it's going to continue. We're hearing talk of some Republicans or some advisors or in Trump's ears and saying listen, this is just gonna keep going because the other side's not gonna do anything. This is affecting things. I was thinking about you know, they got the Super Bowl Atlanta soon. What are you gonna do about TSA? They're on how many people are going to go through Atlanta airport. Just these things, you know, head into my brains. Eight hundred thousand people some living paycheck to paycheck are not getting paychecks. They have to drive. Uber's I got some ask clowns emailing me, then they just didn't government, anyhow, we don't need them. How do you know? Look, I am the biggest proponent of government is too big. I am the biggest proponent that. The forefathers a turning over in their grave thinking about how many people are in our government. I this is like a couple of million a few million people in our government. And how much welfare and welfare programs and this program in that program, and this that and the other thing, but the bottom line, these people still have the jobs that they apply for the expectation is they're working they're getting a paycheck and because of a bunch of morons on both sides of the aisle. They're not. And I already explained to you why they're both sides of the island morons. I don't have to go through it. I have other words I can use for these people. But I can't say them on radio and believe me I'd love to. We still have the tariffs going on. We still have economic numbers around the globe coming in not very good. We had more today here in the US decelerating numbers. So how is the market continuing to go up? Well, as we've told you on January fourth. Ben Bernanke did a one eighty on monetary policy. Excuse me, shape Powell. On top of that you have Europe in Japan that have been promising for months that they were going to roll back. They're printing money and all that they're not anymore.

Ben Bernanke Atlanta TSA Brexit UK Donald Trump United States Europe Japan Powell
December Jobs Numbers on Tap

WSJ What's News

03:32 min | 4 years ago

December Jobs Numbers on Tap

"The holiday shortened week and the partial government shutdown means we'll see a lighter economic calendar. This week all leading up to the release of the December jobs report on Friday, a final snapshot of the twenty eighteen employment picture joining us now from Washington with more details on the data is Wall Street Journal reporter, Sharon, none. Sharon Lister with the jobs report out on Friday twenty eighteen was a really strong year for the economy. Do you anticipate any surprises in last year's final jobs report? Yeah. Absolutely. We've continued to see really solid jobs growth and the unemployment rate is kind of hovering out of multidex low. But as you know, we've seen market volatility kind of increase in recent months. So if we're if the picture were to change because of that market volatility, I feel like this report would would be the first signs of employers. Pulling back on hiring as a result from that market volatility. But if you look at business and consumer sentiment gauges things seem to be. Pretty elevated still so remains to be seen whether or not businesses are actually going to start pulling back their hiring at the same time. There are also concerns about the tightening labor market. The journal has been reporting that job seekers across different industries or quitting in search of better opportunities, which is making it tougher employers to keep in retain talent. Yeah. I think the average American would probably say who cares? I have a great job with finally wage growth. But you're right employees are now able to command in some certain sectors and certain parts of the country higher wages than they had previously because you know, employers are essentially begging for talent and some and some places and because we've seen this wage growth. There have been concerns that maybe would see inflation flare at the same time. But that just hasn't been the case, in fact, actually inflation is kind of cooled in a little bit in some areas in recent months, and finally Sharon, we have an important appearance to note this week on Friday the same day that will see the December jobs report Federal Reserve chairman Jerome Powell. Will will take part in a panel. That also includes his predecessors former fed chair Janet Yellen, and Ben Bernanke that should be an interesting gathering. Oh, yes. All of us here in our little bubbles will certainly be watching it very closely. I will it'll be very interesting. I think a lot of people will be watching particularly for any talk of the fed pulling back its pace of rate increases since the recent global market route that we've seen now, of course, chairman Powell certainly isn't went to come out and say, we're we're thinking we're gonna raise rates, you know, fewer times, but you know, any kind of potential utterances that could could signal that maybe they're thinking this way. And we we've already seen that in the dot plot that they released that a lot of officials think that they'll probably be just two or three rate increases and so far Federal Reserve chairman Jerome Powell has reserved commenting more than necessary on recent criticism of the Fed's rate hikes despite criticism from the president, do you anticipate that he might get some support in that regard from his predecessors. Who may be able to speak more freely perhaps on the president's criticism of the fed. That's a really interesting question. I mean, I definitely think that Yellen and Burnett Anki have been known to kind of stay out of the political foray. And I think they'll probably continue down that path. I don't know they they may not necessarily mention President Trump by name, but they'll certainly probably go on about the importance of an independent fed and how that it should be. How should be free from political influence, which of course, would be would be alluding to the recent Trump comments.

Jerome Powell Sharon Lister Federal Reserve Chairman Wall Street Journal President Trump Janet Yellen Washington Donald Trump Reporter Ben Bernanke Burnett Anki
Trump Criticizes Powell, But Congress Supports Him

WSJ What's News

03:31 min | 4 years ago

Trump Criticizes Powell, But Congress Supports Him

"Federal Reserve chairman Jerome Powell has faced criticism from President Trump for the central bank's interest rate hikes, but congress has not joined the criticism instead indicating support for the feds course of rate increases, the fed has raised interest rates three times this year and is expected to do so again at their policy meeting in around two weeks. Let's talk about this relationship between fed chair Powell and congress with Wall Street Journal reporter, Nick Tim rose who joins us from Washington, Nick, President Trump has called the fed out of control and crazy for raising interest rates, but lawmakers particularly Republicans think this path of rate hikes is great don't they? That's right. And it's important to put into context the feds relationship with congress. It really matters to the central Bank because congress created the fed and congress has the power to change the feds legal mandate, which right now is to seek stable prices and maximum employees. And so in the context of the Fed's independence, which you hear a lot about when the president has been attacking the fed will truly matters to the fed is what congress does because if congress were to open up the Federal Reserve act and make changes to it than that that would be seen by some people as a direct attack on the fed. And so the fact that congress here is not only are they not embracing what the president is saying, and that could change, of course. But that you have Republicans who were critical of the fed over the past decade for keeping rates too low who are now a defending what the fed has been doing even though the president of their own party has been attacking the fed. That's very important. Let's talk about that history for a minute haven't Republicans long called for a faster pace of rate hikes to more normal levels from post-crisis lows. Yes. During the Obama administration Republicans were concerned that the fed was to easy. You had Republican leaning economists who sent an open letter in twenty ten to then fed chairman, Ben Bernanke, he saying you're risking with your bond buying programs all sorts of terrible things currency debasement inflation, it'll be the rampant those things did not happen. And now that the fed has been raising rates. It would be hard to maintain a ideologically consistent position and switch from attaching the fed for doing too much when the economy was weaker than it is today. And now they me as much stronger to say, oh, gee, you're overdoing it again. It's it's possible that you could see criticism in the future. But for right now, you haven't on the other hand, the market's really skyrocketed about a week ago or last week after fed chair pal signaled flexibility and setting rates, isn't that the case? Yes. And there was a member of congress who oversees a monetary policy subcommittee. Andy Barr from Kentucky who. Actually, put out a statement after that speech, basically, encouraging chairman Powell to stay the course. And so what you're seeing from Republicans has been a message of defending what what pal has been doing. They've also defended President Trump's right to say, whatever he wants about monetary policy. And then you have Democrats who have been relatively deferential to chairman pal so far at least on monetary policy. The main disputes they've had with the fed have been on some of the moves to loosen

FED Congress President Trump Chairman Jerome Powell Ben Bernanke Wall Street Journal Nick Tim Barack Obama Washington Reporter Andy Barr Kentucky Two Weeks
America may not have the tools to counter the next financial crisis, warn Bernanke, Geithner and Paulson

Bloomberg Daybreak

01:56 min | 4 years ago

America may not have the tools to counter the next financial crisis, warn Bernanke, Geithner and Paulson

"Financial, Services committee we'll bring you the question and. Answer portion of his testimony live the ten AM Wall Street time Well the, fed appears. Confident it. Has the. Weapons needed to fight the next. Financial crisis some former policymakers are not so sure Bloomberg's John Tucker is here live to explain good morning John joint briefing with reporters former fed chair Ben. Bernanke the former Treasury Secretary and New York fed president Tim Geithner and former Treasury Secretary Hank Paulson. Voice concerned about America's ability to combat another financial meltdown Gardner said the fed has less scope to act as, interest rates are lower and argued, that the emergency, powers the proof so essential a decade. Ago are somewhat weaker today Bernanke is worried about longer term consequences of rapidly rising government dead Paulsen also agreed adding it, will slowly strangle us John Tucker Bloomberg daybreak thank you, John on. The trade. Front sources. Tell Bloomberg. That European Commission president young Claude Yonker will. Meet with President Trump in Washington next week where they'll explore the possibility of negotiations to reduce tariffs On cars Yonker will likely. Signal, willingness to consider a deal to reduce auto levies between the US and EU countries. Turning to corporate news now the CEO. Of, Texas Instruments Brian Crutcher has resigned after less than, two months on the job, Charlie Pellett has, the story TI cited violations of the maker's code of conduct. His predecessor rich Templeton will assume, the role on a permanent basis in a statement. The company did not elaborate but it did say quote the violations are related to personal behavior that is not consistent with our ethics and. Core values but not related to company strategy operations. Or financial reporting Charlie Pellett Bloomberg daybreak thank you Charlie Berkshire Hathaway's move removing a cap on stock buybacks that will, give chairman. Warren Buffett. Greater leeway. To dole out profits to shareholders..

Bloomberg FED Charlie Pellett John Tucker Bloomberg Bernanke Claude Yonker President Trump John Treasury Secretary Hank Paulso Charlie Berkshire Hathaway John Tucker United States Warren Buffett Rich Templeton Brian Crutcher Tim Geithner CEO