35 Burst results for "FED"
Chicago Shedd Aquarium Asks Fans To Encourage Help From Congress
"Is asking its fans to help in getting more aid from Congress during Cove in 19 shutdowns and restrictions, the sea otters still must be fed whether visitors air coming in to see them or not. In the shed. Senior director of Policy and advocacy Andrea Dan Shaw says that costs $11,000 a year per odder were unlike a number of institutions that can close the doors and walk away. That doesn't happen for us. We remain open and our hardworking staff provide essential services for the amazing animals and our character. The nonprofit is asking the public to reach out to their members of Congress to get them to quickly approve more aid for cultural institutions like the shed. Den Cha says they've lost about $36 million in admissions revenue this year and see Hardy NewsRadio 105.9 FM. Well, a record number
Walter E. Williams: Conservative Economist on Black Issues
"There's two. Great free market economists. Walter williams was one and thomas. Seoul was the other and i think i remember. I forget if whether it was walter. Williams i think it was thomas. Soul who mentioned on an interview that when he spoke to walter williams they joked that they should never both fly on the same aeroplane because if that happened and the plane went down the only two black conservative economists would be gone and so that would be too big a tragedy so to make sure that didn't happen. They should never both fly on the same mayor plane. But both of those guys. One of the things that i think was so special about them is that because they happen to be black and these guys were great economists regardless of their race but what made them so special is being black and saying the things that they did right. It made it much harder for people to attack them as being racist right. Because both these guys. Walter williams and thomas soul are staunch opponents of the welfare state of the great society war on poverty programs of these anti-discrimination laws. They don't like any of them and they do an excellent job of explaining why these laws why these well-intentioned laws are so counterproductive. Now of course if a white guy were to make the exact same statements. While you're racist right well you take that weapon away. If the guy who's making those statements happen to be black. How are you going to say that. That person's a racist. Now i know sometimes they say all. They're an uncle tom. But maybe that doesn't have as strong a connotation as as as being labeled a racist was very important to have these guys out there and have them as role models right so younger. African americans could look up to these guys. You know what yeah. They're not all left wing there on all a bunch of socialists. Here's some african. Americans that are free market. Libertarians steadier out there defending individual liberty and the constitution. That are objecting to all of this. You know race baiting and poverty pimps and everything that the left is doing that whole agenda these guys walter williams and thomas soul were excellent advocates for the opposite for the free market and and they did a good job of exposing the hypocrisy and the fallacies of of the left.
Trump's grievances feed menacing undertow after the election
"The Trump campaign also wants election results thrown out. They claim suitcases of ballots were counted late at night on allegations, state election officials say, has been debunked and intense. Vania GOP lawmakers air pushing the U. S. Supreme Court to block any further certification of the vote. Republicans claim officials had no right to expand melon voting under the state Constitution functions yet Paul. So far no states or courts have verified the president's claims off widespread election fraud,
Restaurant turns into soup kitchen to help the poor
"And a claim Mexican restaurant in the south Bronx run by undocumented immigrants is reinventing itself during the pandemic as a soup kitchen to feed the hungry plot Maratha still serves its paying customers and makes about six hundred fifty meals for people who can't afford a meal Markel Mendez is that daca recipients and the restaurant's manager you knew there was a huge hit our community being one of the epicenters in the city when we were most hard hit in those ones and so we we started to transition into that and see how we could do that the reaction to the first that we re open we made huge pastorals of soup and we gave it a lot within the span of an hour in the Bronx the soup is appreciated a lot of people need this ain't working right now does come in handy I would think cancer Mendez family's request for emergency federal small business loans were rejected because of their immigration status I met Donahue
Who should get the coronavirus vaccine first?
"I i mean story this week. Where at the end of twenty twenty starting to think about twenty twenty one. We've got a little bit of positive news on the covid front coming through with all the sort of steps forward in terms of developing a vaccine and we might be starting to think about actually meeting together in person in the office we could do the cast in the office. Perhaps who knows it seems like years ago that was a thing but maybe things will return to normal or at least normal ish. Natasha you've been looking into what the vaccine new means for how we're going to work. Yes i you're right vicky. This week we've had some really exciting news about coronavirus vaccine so the uk has become the first country in the world to prove the pfizer biontech rhinovirus vaccine for widespread use. Vaccinations could start as early as next week. For people in some high priority groups with eight hundred thousand doses. Say four hundred thousand complete treatments arriving in the k. In the first delivery now this is the end of the tunnel for many people who have suffered in this year throughout the pandemic in the world of work may mean exactly what you were saying. Vicky that we soon might be heading straight bites and the office to the sounds and smells of our colleagues. This is obviously when you've got news. But i've been looking into. This is exactly that what what does that mean. So the pandemic has largely proved that working from home is possible in many cases maybe even good for productivity do you think companies are going to urge workers particularly white collar workers people who may be able to do their jobs remotely to trudge the office soon as they can necessarily very true. The coronavirus crisis did that. Many people able to work from home really effectively. Before the pandemic companies were hugely work from home. So that was really bad. Perception in fact most business leaders told the world economic forum in two thousand and nineteen survey that they expected homeworking be negative for future productivity. Even though there's plenty of research demonstrate the opposite opposite so they've been proven wrong basically but what is true. Is that throughout this crisis. Companies have struggled to solve marietta. Problems come from having everyone. Working bosses are really worried because they can no longer see if you're working or how hard you're working. They struggled to know how to evaluate people's performances remotely. And they worry about whether working from home. We'll have hamper people's creativity. There are mental health issues concerning employers to so people are feeding isolated and lonely. And it's getting worse over the period of time that we've seen the longer we work from home. The worst gets their reporting high levels of stress anxiety and depression mental health issues and finally the pandemic raised cultural issues to such people feeding left out of work conversations. That would have happened in an open plan office and now taking place on private messaging channels or people were afraid that they'll be overlooked for promotions and opportunities at work. So it's a really big problems. They haven't actually managed to solve yet so given all of that. It's likely that companies will want work to combine the office if they can but the big question here is whether they're going to be set up with social distancing which means that people are able to sit next to each other and have to wear masks when they walk around basically similar to what was happening over the summer when the i look down lifted or whether they'll go back to normal and wait for that so it's said they can come back to a situation that was exactly the same as before the coronavirus so the way reopened offices operate in practice will impart depend. Who gets the vaccine. I with current plans. Favoring a staggered approach where all the people and those most medically vulnerable our head in the queue on paper that would mean that if officers wants open as normal they could wait until the employees age groups have been offered the vaccine and could theoretically opened the doors looking exactly as they did before the pandemic so as you as you mentioned There are of like there are different priorities. A different people Getting vaccine Based on their risk in their age and various other factors the of the world health organization has issued guidelines on but countries are interpreting in their own way. Doesn't mean if we are seeing and people who are older to begin with getting getting vaccines will Companies of encourage those. That have had vaccinations to be back at work. I will abuse of like staggering of like people with innocent adrian to have returned to the office to begin with and then so it rolls out like that or what was going to happen there. Yes as is in theory. If you think about the way the plans have gone from government. It looks like older age. Groups are going gets it earlier as well as people with medical conditions. That need if i so the most vulnerable and then it will go so slowly closer and closer to the younger people the population. So we'll get staggered of opposite way. I i guess. I in theory if you have an older working level of employees so if my employer over the age of forty or fifty they might be vaccinated sooner and they might be able to come to the office earlier in theory but i is. The answer not really happened that way because there were really two specific reasons why that won't be the case. If if older employees allowed to turn over younger employees age discrimination could be on the card. So it'd be very easy for people whose age groups still haven't been offered the vaccine to say look really unfair for older people in my group to be able to return to the office and for meat not be given the opportunity simply. Because i haven't been given the vaccine i legally right now. The uk also can't make vaccine monetary. So there might. It might be the case in those age groups where you assume everyone's had the vaccine they might be built haven't had it at all and decided that they're that they're not going to so the uk government said that it won't make a vaccine mandatory anyway so employees can never really assume that one hundred percent of employees will have taken the vaccine to go back to normal and those that do really really thin ice so companies could face human rights challenges as well as potential liability if employees suffer side effects as a result of being forced to vaccinate if they feel like they're being pressured by employers who wants to go back to normal when they say look. We don't have social distancing. Want to go back to exactly the way it was are you. Are you vaccinated. And they feel bad pressure to do so. That could be a big problem. And also there's a second thing which is employees can refuse to tell their employees if they've had vaccine to it's not their obligation to disclose that information so the nicholas southern the employment lawyer who we spoke to this piece said that companies that demanding more bums on seats will likely be more led by commercial needs than anything else when deciding who to bring back to the office but there other people who being clients bring vaccinated employees back i so she says that companies should tread carefully. Some employees will not want to be vaccinated for religious philosophical or health reasons and companies. Could face discrimination claims as a result of that but we can't forget her is so second. Take time for people to feel safe coming to work again. Regardless of how many people were vaccinated and their safety remains the biggest hurdle to a full return to the office so who's linked study of uk c. level executives from mid sized companies which found two fifths expect employee resistance to go back to the office when they reopen all. These things has taken into consideration when planning returned to the office which is likely in springtime if not sooner if the roll out with the vaccine goes well but with a more flexible feature on the horizon the biggest challenge that companies will have beyond safety concerns is how they can create inclusive workspace and cultures that worked for remote workers hybrid workers and office workers. I think it's tempting to think of the vaccine is like it's going to be this single moment where we rush rush out into the streets hug complete strangers like va day. But it's not going to be like is going to be like the congratu snipe excessive everyone a vaccine. So i mean we're going to be in this weird hybrid situation for awhile don't we. Yeah that's that's what it sounds like at the moment gonna be really hard to tell what implausible decide to do until we start to see more people going back to work in the uk probably in spring twenty twenty one as i said before when the vaccine becomes a bit more wide spreads. But you're right. I mean there's not going to be breakthrough wrestler. Everyone's had the vaccine. We're all cured. There's no parallel toll. Everyone lick the handles on the doors of your offices all safe again. You ever do that. Good but look judging going my serious. Judging by the survey data coming in recent months this is kind of a break from what's happened before people do enjoy working from home part time i love them. Do miss the office. But it's not because they miss being a building or they missed. The commute is because of their colleagues and the social aspects of work. Those are the kind of things that they missed the most. And so it's likely that companies will listen to that and even if they do want people to come back because of the concerns about their productivity and about creativity or their or their mindsets. They're still probably will factor in that feedback and offer a hybrid type workplace since working from home is proven to have no downside on productivity.
Woman seriously hurt by tiger bite at Carole Baskin big cat sanctuary
"At Carol Baskins Big Cat Rescue in Florida. Tried to rip off a worker's arm. Baskin and the zoo were made famous by the Netflix series Tiger King. The volunteer was seriously injured, Baskin says. Ah, Tiger name Kimba bit. The volunteers are most she was reaching into a cage to unclip adore during feeding. Over. She felt around trying to use my family as attorney used his bill, look better. In an interview with inside edition, Baskin said it is against protocol for anyone to stick a body part into a cage with a cat in it. The volunteer had been with the place for five years. She says she doesn't want the tiger to quote come to any harm for this mistake and quote. Died for the
Hungarian lawmaker resigns after caught fleeing a 'sex party' by climbing down a drainpipe
"Know. The career of a close ally of the hungarian prime minister viktor orban who was also an emmy p. has ended in a welter of scandal and suspicion as his actions threaten the public valleys of the right wing fidesz party lily by is a reporter at politico and she's here with more lily. It's with all the key elements. We have sex politics lawbreaking drugs and intrigue sitting comfortably. Tell us what happened It's quite an extraordinary story So basically over the weekend. A member of the european parliament. You'll jeff siad of the blue announced that he is resigning He is a member of hungary's ruling fetus party but It's important to understand that he's not just an ordinary member. he's one of the co founders of the party. He was there with prime minister. Viktor orban and others in nineteen eighty-eight when they started this political journey back then as young liberals he has been the prime minister's inner circle ever since and has played a key role in hungary and politics including the lead author of one of the hungarian government's main political projects. The two thousand eleven constitution. So he's really a an important figure especially in the intellectual circles of the ruling party so when he resigned that sparked a lot of questions. Initially people were wondering are there any divisions within the ruling party. What's going on. And then on tuesday details started leaking. I two local belgian press that that a member of the european parliament had attended a party on friday night in brussels. That was by police. Now it's important to Stand for those of our listeners. Who who are not familiar with bowel gyms rules that we have pretty strict covert related restrictions here about gatherings so belgian. Trust reported that there were about Twenty five naked men this particular party which at police had raided for violating the health related restrictions. And what prosecutors later said is that a passer-by had seen someone sleeping along the gutter This person It turns out Mr sire the a member of the european parliament was apprehended and then police found narcotics in his backpack after the leaks. Uche the politician. He admitted to having been present at the party but denied that the narcotics were his and this created a huge storm and hungarian politics given closely associated. He has personally with the prime minister. An element of his behavior do you think was most offensive to the party. I mean could he got away with it if it had. Just been about breaking lockdown rules. Well it's it's hard to tell but one thing to to note is that Ever since the late nineteen eighties when fetus was a young idealistic liberal political party on the were informal conversations within the party about mr sires Sexual orientation this is something. He has never discussed in public. And of course it's it's up to him to to to discuss But but within the party party members were chatting about this and at the time Wait what people say now is that they simply did not care They saw that. It's his private matter of what he does in his private life. And it's it didn't impact his initial political career. He was The group leader of the fidesz faction in the european in the are in the hungarian parliament. Initially in one thousand nine hundred ninety so he was quite an important figure within that party and so you know feed us because of its strategic trajectory. It's important to note you know it used to be a liberal party. It evolved over the years. It moved further and further to the right at today. It's a party that has been criticized for for what Lgbt activists call Anti gay policies but initially it did not have that kind of ideology back in the in the eighties and nineties. But i mean as you say. He had significant input into the very conservative constitution which holds family values it doesn't recognize. Lgbt rights he's married to a female judge judge as you say they've been whispers about his own sexuality so i wonder how this has affected the party. How it's affected feeders. In terms of just sheer hypocrisy. That's right so. I think that the opposition in hungary has really seized upon this issue Some have talks about What what one. Opposition politician called the moral bankruptcy Of the party. And i think that this will be an issue in the twenty. Twenty two election campaigner there will be elections then and it's already looking like a tough race even though Hunger in minister viktor. Orban is in quite powerful position and critics say an unfairly powerful position because of the covid crisis and because of economic problems in hungary like most other countries experiencing It's already said to be a tough campaign and having this kind of Scandal so close to to the real start of of of the race. Is i think putting more pressure on the party. And that's why. I think on wednesday or bounded something quite untested hinted for him He he gave a statement saying that. What cya did was unacceptable and indefensible and he said that This kind of behavior has no place in the values of the political family. And this was quite extraordinary. In hungarian context because i was with such a close friend and ally for over three decades And it's very very rare Side did quit the party. Officially on wednesday as well It's very rare for someone of that stature to to be publicly criticized by by the party to actually quit just quickly before we go. We know that he was a key figure. In brussels. In terms of of hungarian paulo within the eu. And i wonder if this will have an impact on the covert relief budget. Talks where hungary's vetoing the because the eu's insisting that the country conforms to various elements of the law so prime minister or bond was are speaking on hunger and state radio just about an hour ago and he repeated that hungary is came to its original hard line position on the eu budget and rule of law is a big conflict about that because a lot of eu countries in the european parliament one to length distribution of funding to respect for the rule of law There has been a lot of speculation about whether this is going to weaken or bounce position. a bit hard to tell right now We will see. I'm next week when
Wisconsin high court won't let Trump campaign bypass lower court
"To hear President Trump's lawsuit attempting to overturn his lost to Democrat Joe Biden in the battleground state. Sidestepping a decision on the merits of the claims and instead ruling the case must first wind its way through the lower courts and another blow to trump. Two dissenting conservative judges questioned whether disqualifying more than two it in 20,000 balances Trump wanted would be the property proper remedy to the errors. Trump's alleging that a feed on a 4 to 3 ruling was the latest in a string of losses for Trump's postelection lawsuits, judges and multiple battleground states have rejected his claims of fraud for irregularities. Trump asked the Wisconsin Supreme Court to disqualified ballots in the states, two biggest Democratic counties. Those counties alone has lawsuit echoed claims that were earlier rejected by election officials in those counties during the recount that barely affected Biden's winning margin of about 20,700 votes. Trump's attorney, Jim Troopers, said he would immediately file the case in Circuit Court and expected to be back before the Supreme Court very soon and asking the conservative controlled Wisconsin Supreme Court to
Volunteer bitten by tiger at Carole Baskin’s Big Cat Rescue in Florida
"Volunteer. Who feeds the animals. Carole baskin's big cat rescue in. Florida was bitten and seriously injured by tiger this morning in an email to the associated press baskin said. The woman did not follow protocol when she reached into an enclosure to open it by herself and the tiger grabbed her arm and nearly toward off at the shoulder. Baskin who was the subject of the netflix series. Tiger king says the volunteer doesn't want any harm to come to the tiger which is now in quarantine for thirty
Carole Baskin's Big Cat Rescue sanctuary speaks out after tiger attacks volunteer
"In Tampa, Florida, There was prominently featured in the Netflix series Tiger King has been bitten. NBC's Mark Remillard reports had rescue volunteer candy Cowser was bit while feeding a tiger name Kimba. According to a statement from the rescue run by Carole Baskin, who was heavily featured in Tiger King. The rescue posted a video Thursday of other volunteers talking about what happened. I could say that the army is detached in the shoulder. That it's barely hanging on my little bit of skin underneath s O. I didn't need it Leave. There's anything under there, so I put pressure underneath the armpit. We have Venus, the statement says Cowser was bit when against protocols she reached into a cage during feeding Marco Malard ABC News Counselor was conscious conscious
Anthony Fauci expected to meet with Joe Biden's transition team Thursday
"This is a probably the most fraudulent election that anyone's ever seen. President elect Joe Biden and Dr Anthony Fauci are scheduled to hold a teleconference today. I'm looking forward to it, it likely will be the first of a Syriza's of normal type of transition undertaking, she says. Normal transition items such as the state of vaccines and the overall Corona virus pandemic are on the agenda. A central Texas mayor regrets vacationing in Mexico while telling people to avoid travel due to the coronavirus, I know that in my position, I need to send a clearer message. I'm sorry I took that trip. It was a lapse in judgment, and I want you to know that I apologize. Austin Democratic Mayor Steve Adler says he didn't violate any coronavirus health orders When he traveled in early November after his daughter got married. The mayor admits to being worried the trip could be used to justify risking Behavior. Ah, volunteer at the Big Cat Rescue made famous by the Netflix series. Tiger King is recovering after a gruesome attack today, officials say the volunteer at the tap of facility nearly had her arm ripped off while feeding
Volunteer's arm 'nearly tore' off during tiger attack at Carole Baskin's Big Cat Rescue
"Run by Tiger King's subject. Carole Baskin, Cool getting getting account lost its cool it Big cat rescue in Tampa, Florida, headed up by Tiger King's Carole Baskin, the sanctuary says volunteer candy Cowser was attacked by a tiger named Kimba and her arm was nearly tourney off at the shoulder. Apparently counselor went into an area she wasn't supposed to to feed. Kimba and the Tiger almost severed her arm, releasing it when other volunteers came running counter was taken to the hospital. Kimba has been put in quarantine, but the sanctuary says you Is just acting like a normal tiger in the presence of food. Jason Nathan's an ABC News
CDC director warns the next few months could be 'the most difficult in the public health history of this nation'
"Is warning that the next three months could be the most difficult in the nation's history. In regard to public health epidemiologist, Dr John Brownstein says, and national effort is needed to get more control over the coronavirus. Operation works feed. Well, we need operation works speed for masking operation works speed for testing. The CDC needs to engage her to get people to understand that they need to stay at home, Cancel all non essential gatherings and get through these next few months. Staying at home
Fed and Treasury urge Congress to act now on virus relief
"Ranking member McHenry and members of the committee. I'm pleased to join you today to discuss the Department of Treasuries unprecedented response to support the American people throughout the pandemic. We continue to work to implement the historic cares act with speed, efficiency and transparency, But our job will not be complete until we get every American back to work. When I last testified before you in September, I stated that America was in the midst of the fastest economic recovery from any crisis. I'm proud to say. While there is still a lot more work to be done, that statement is true. In the third quarter, GDP grew by 33% annually, beating all expectations and a previous record of 1950 Americans are getting back to work. The October jobs report should the economy gained back 12 million jobs since April, more than 50% of old jobs lost due to the pandemic. The unemployment rate has decreased to 6.9% rate not expected by the blue chip to be achieved. Till the fourth quarter of 2021, the historic bipartisan care, Zack provided the economic relief that is critical to supporting the economy. Recovering. Additional economic slowdowns, however, continued to impair and cause great harm to American business and workers. Based upon the recent economic data, I continue to believe that a targeted fiscal package is the most appropriate federal response. I strongly encourage Congress to use the 400 55 billion and unused funds from the cares act to pass an additional bill with bipartisan support. The P P P has unused money of $140 billion that could be sent out the door immediately to support many small businesses. The administration is standing ready to support Congress in this effort to help American workers and small business that continue to struggle with the impact of covert 19 Charger has been working hard to implement the cares acting a transplant. Aren't inefficient manner. We've released a significant amount of information on treasury dot gov. And USA Spending Duck gun we continue to cooperate with there is oversight bodies, including the new special, IJ, the Treasury IG, the Treasury IG for Tax administration, the new Congressional Oversight Commission, the G A. O. We have provided regular updates to Congress marking this my ninth appearance before Congress for the Cares Act hearing. We've also divide It's significant resources to responding to enquiries from numerous congressional committees and individual members on both sides. We appreciate your interest on these issues, and we remain committed to working with you to accommodate Congress's legislative purpose to advance the whole of government approach to defeating Cove in 19 share waters. I do want to just respond to your comment where you said I had no justification and made matters worse on my termination of the facilities. I just want to Emphasized. This was not a political decision. I was merely implementing the cares act. I'm happy to walk you, your staff or other members of the committee through section 40 29, which makes it very clear. I find it implausible that any member of the committee believed in voting for the cares act that you are authorizing me to invest $500 billion in Federal reserve facilities to make loans and purchase corporate bonds in perpetuity. With no expiration date. That is exactly What you would have to believe. If you disagree with my interpretation of congressional intent on the issue, and since I was personally there and negotiated most of these documents, I am very familiar. But if Congress wants to extend this money for federal purposes for these facilities, Congress can add that new legislation. I'd
Fed reports slowing US economic activity due to virus surge
"Conditions around the country found that economic activity in several regions slowed in November as Corona virus cases surged, according to The Associated Press. The Fed report released Wednesday said that overall, the feds 12 regional banks characterized the economic expansion as quote modest or moderate. But it noted that three Midwest regions and the Philadelphia region reported activity that began to cool in early November as covert 19 cases surged into Reed. You can read more
Fed and Treasury urge Congress to act now on virus relief
"J powell and treasury secretary steven mnuchin were back on capitol hill this morning talking again as we told you they did yesterday about their differing views of this economy mnuchin generally more positive powell more pragmatist pointing out this morning. The fed chair did the tens of millions of people are still out of work and that absent. Some kind of relief from congress lasting damage will be done
The Most Important Chart for the Markets
"We start off tonight with the most important charter in the market. Because of course we would according to one of our traders check out the yield curve spread between ten and two year treasuries at its highest level since february twenty eighteen. So our rates off to the racist. Could this rate shock crush this record rally karen. You flag this yeah. I don't know it will crush this record rally. We don't want rates to skyrocket to quickly. I mean this is a big move but still you know. The absolute is seventy eight basis points but it is sort of telling us that the expectation is that the economy. Oh heat up and we've seen that. The resources traded that tim talks about. We've seen in energy. We're seeing it in the banks Even though they don't really aren't giant to ten spread they do trade that way. So it's indicative of the expectation of a heating economy. Maybe also more stimulus. So that's sort of how position but i also have a big inflation bet on because i do think there is a chance that inflation gets away from the fed and i don't know what they would do in the shorter to medium term the timeframe though tim i mean it's got to be a goldilocks right. Just enough inflation. Not too much inflation. It's gotta be just right. Yeah i mean it definitely not too hot not too cold and you have a case where normalized rates coming out of this and whatever that means also but where we were coming into kobe remember. We're somewhere between one. Forty one seventy five and the ten year so pointed out what the trades that have been beneficiaries or have had the extra boost that comes from this and the resources trade. I mean look coppers three fifty. We haven't been three fifty since march of two thousand and thirteen and some of the trades that look like it's back to the future in the resource look at steel companies. And i'm not just talking about us. Steel look at mattel which arguably the biggest deal company in the world or posco. These you know mt. pk ex. Those are names. you can track over here freeport. We talk about all the time. So i think you have a case where the assessment of all of this to me is more about normalizing. It's not that we're in great shape. And in fact i think we're in a tough place for markets and even some of these trades when we've normalized but we aren't near normalization at this point then later on fiscal even if that's disappointing number Infrastructure to me is is going to continue to rally in these trades member again. you don't buy commodities when you're when they're cheap you buy them when they're running and when they're expensive and i think there's a lot left to do here.
Atlanta's Grady students vote for Midtown High School as new name
"Now to update the renaming of Atlanta's Grady High School. The Atlanta School Board meets Monday to vote on changing the name to Midtown Haas committee has recommended to support the student vote. Fed Chairwoman Leslie Grant says more than 60% of Grady students picked Midtown high schools that first choice, a name favored by the committee earlier this fall to be Wells after the trailblazing black journalist places a distant
"fed" Discussed on Marketplace with Kai Ryssdal
"In los angeles. I'm kai rozelle. It is tuesday today. The very first day of december good as always to have long everybody we are going to begin today with some interrelated interlocking parts that might affect the short and medium term future in this economy and then a disconnect which honestly could do the same thing i number one there are new murmurings on capitol hill of a maybe possibly could be deal for some kind of new virus relief for this economy. That is about all we're going to say on that because as you know we've been down this road before with relief plans but it does get item number. Two janet yellen in her first official remarks as treasury secretary nominee. Maybe giving congress low. Poke in the eye. Inaction will produce a self-reinforcing downturn causing more devastation. So that's the maybe there is help on the way news of the day. The oh no. There's not came to us from fed chair. Jay powell and treasury secretary steven mnuchin in congressional testimony this morning summing up their views on the state of this economy and as marketplace's nancy marshall genzer explains. There is a disconnect. If you watch. Chair powell and secretary mnuchin senate banking committee testimony today and i know you did. You'd think they were talking about two different economies. First mnuchin said the october jobs report showed that the economy has gained back. Twelve million jobs since april and powell followed up with although we welcome this progress we will not lose sight of the millions of americans who remain out of work. Powell looks at the big picture. Mnuchin is focused on the letter of the law and the cares act did specify that some pandemic aid stop at the end of the year as the economy recovered mnuchin acknowledges that some additional help is needed but he also points to the falling unemployment rate. Catherine judge is a law professor at columbia university. The look at where we are this quarter relative to last quarter and they look at the rate of improvement. The unemployment rate did fall to six point nine percent in october. But that's still almost double the jobless rate before the pandemic hit the us adam ozimek chief economist at the jobs would site. Upwork says powell sees the glass half empty wall. Mnuchin says it's half full and mnuchin could make it harder to convince wavering members of congress to vote for another relief package. You can't really rally the troops as long as you're describing glasses full if congress doesn't pass another relief bill. Williams college economists. Ken kutner says the fed will say. Look if you guys can't get your act together and pass some fiscal stimulus you know. It's going to fall for the fed to try to try to take that slack as best we can and kutner says the feds tools are not ideal for that fed chair. Powell has said repeatedly. The fed makes loans not the grants that struggling businesses and jobless workers need right now. I'm nancy marshall genzer for marketplace. Speaking of jobs by the way. Friday morning brings us the november unemployment report. More now actually about jobs because we told you the other day about how some states have been overpaying unemployment benefits and are asking people to pay that money back turns out some states have also been underpaying people who were on pandemic unemployment assistance. That's the program for freelancers and gig workers marketplace's cement. The fields has more on a report from the government. Accountability office pandemic unemployment. Assistance is a new program and when it was created back in march state unemployment offices had to scramble to get it up and running because of that andrew statiners the century foundation says in the beginning. Everyone was getting the minimum benefit because states. Were moving this out very quickly. And they wanted to get the benefit people's hands. The idea was that states would eventually go back. Look at people's tax returns or other proof of income to calculate how much should actually be getting and then adjust their benefits. Accordingly but in a lot of cases center says many workers have not gotten their benefits readjusted even if they have successfully sent in their tax returns a majority of states have been paying people the minimum benefit instead of the actual amount. they're eligible for according to the gao. How much people are being underpaid. Varies by state in paxton is with the unemployment law project in washington state in many states with decent benefit amounts. People are being underpaid by hundreds of dollars every month. Some states are starting to go back and recalculate benefits says michelle evermore at the national employment law project. Hopefully what that means is that this month as benefits. Maybe winding down. At least some people will get some notification that they get a lot of back pay but she says people who are on as should be proactive and ask their state to recalculate benefit and not assume. It will happen automatically. I'm samantha fields for marketplace wall street to start the month pandemic what pandemic. We'll have the details when we do. The numbers did this. Connie as you know because we tell you all the time depends on american consumers consuming so it stands to reason that american companies count on american consumers to and while we have largely stepped up we being consumers the pandemic has introduced no small amount of uncertainty into our spending habits so a lot of american companies have started looking at chinese consumers to keep them afloat. But as marketplace's jennifer back reports from shanghai chinese consumers have a lot going onto in the commercials district of shanghai in american firms. Up test. Kitchen do put. Its twist on a chinese classic. Golden fried rice chef young h one covers a bowl of cooked rice with a thick yellow mixture. We've been right. Make sure they're right. Absorb enough liquid egg. We have and the right like the egg he's referring to comes not from chickens but rather mung beans it's a plant-based egg and the us startup behind it and this cooking demo is eat just ceo joshua tetris china was part of its business plan from day one but one point four trillion eggs are laid in consumed every year and about thirty percent of all those eggs are laid in consumed in china The us is a little bit less than ten percents. China's market is not only big but the authorities have the pandemic controlled enough that the firm could hold this cooking demo where mass.
"fed" Discussed on The Peter Schiff Show Podcast
"It's been a rough ride for US stock indexes since the Fed's announcement on Wednesday that it had decided to leave interest rates unchanged, , and of course, , it was followed up by a Powell press conference. . In the last three days, , the Nasdaq composite is down by just under four and a half percent <hes> s and p five, , hundred down almost two and a half percent Dow Jones holding up better down about one percent clearly. . What was weighing down the SNP and not so much. . The Dow are the tech stocks. . They're really dominant in the NASDAQ. . That's why it's down the most what people are blaming the sell off on is the fact that the Fed was not dovish enough if you can believe that first of all, , what are those statements that the Fed did make is they intend to leave interest rates at zero throughout at least twenty, , twenty three. . Now, , I'm not really sure if that means that maybe they're going to start raising them in twenty twenty three or they'll leave him at zero through the end of twenty, , twenty three and they're not going to start raising them until twenty twenty four but whatever it is, , it's a pretty solid commitment to leave rates at zero. . I don't think the Federal Reserve at any point in time following the OH eight financial crisis made a commitment <hes> that solid right to leave rates for so low for so long, , but I'm not the only one. . That saying that this wasn't enough I mean even Neil Cash Gary came out today I was reading an article he wrote and he says that the Fed's commitment not to raise rates wasn't strong enough now I don't know what he's talking about I mean how much stronger could they have made it I mean could he added a few more not even thinking about thinking about <hes> it's pretty clear. . The feds not to raise raise but maybe cash carey wants a more definitive statement that like we're not going to raise rates. . No matter what. . <hes>. . In his article that he wrote a kind of saying that the Fed's commitment to not raise rates wasn't strong enough <hes> what he did say though was that you know if we are surprised by unexpected heating up of inflation, , he said, well, , , you know that's an easy problem for the Fed to solve a really a unexpected heating up. . In is an easy problem to solve how exactly is the Fed going to solve and unexpected heating up of inflation? ? Well, , it only has one tool, , right monetary policy. . All it can do is raise interest rates and shrink. . It's balance sheet. . It can sell treasuries and reduce the money supply which has been growing dramatically although the balance sheet his condiments stuck right around seven trillion <hes>. . So that hasn't really been moving I. . Think we're getting ready for another big jump in that balance sheet though. . But. . How's the Fed? GonNa ? get a fight inflation. . How was that an easy problem to solve? ? It's an impossible problem to solve which is why the Fed isn't even going to try. . I. . Mean It's amazing of Kashkari actually thinks that it will be a simple thing to reign in an unexpected <hes> heating up of inflation when that would require much bigger rate hikes mean the reason that cash. . Carey wants to make sure the market knows that rates are going to stay zero indefinitely is because he knows how important these artificially low interest rates are to prop up the bubbles in the economy. . Well, , if he knows how important it is to keep these bubbles from deflating, , how can he believe it's going to be so simple to raise interest rates if inflation picks up without pricking. . The bubble. . So the whole thing is ridiculous but as I said on one of my prior podcast about the market I think that the Fed is going to have to deliver a much larger dose of monetary stimulus because whatever stimulus has already been telegraphed to the market is already baked in. . So now they need more rate the drug addicts need an even larger dose of this monetary. . Heroin, , they need shock and awe at this time. . So in that respect cash carriers right that in order to get the markets to go up to fed has to bring more to the party as far as more money printing another round of Qe, , a massive commitment to print money and to keep interest rates at zero but we're cash carriers. . Wrong is the ability of the Fed to actually. . Put out the inflation fire if it really starts to rage, , it can't, , and basically what cash gary really wants <hes> the Fed to say without actually saying it because he understands the ramifications is that we are going to keep interest rates at zero. . No matter what happens to inflation no matter how high inflation goes we're going to stay at zero see that's really what he wants, , and in fact, , that's what. . The Fed is going to do whether they wanNA, , come out and say it or not. . You have to read between the lines. . They can't raise interest rates because they'll prick the very bubble that they deny exists and the reason they're keeping them zero. . The reason they're saying that they're never going to raise them is because they understand this and so they're trying to thread this needle right without breaking the bubble. . and. . So when He comes out with these comments. . He's clearly lying in fact, , the one thing about the bubble. . Is that nobody at the Fed wants to acknowledge its existence in fact at the press conference that? ? Followed up on the decision to leave rates zero. . What are the most ridiculous comments that Powell made? ? Is His denial that there was a bubble because somebody asked him and I don't remember who? ? But one of the reporters at this press conference asked Powell if he was worried. . About this easy monetary policy about his commitment to keep the rates at zero till twenty, , twenty, , three, , twenty, , twenty, , four. . If this risked creating bubbles in the financial markets
"fed" Discussed on Marketplace Morning Report with David Brancaccio
"We'll tell you what you need to know and why it matters just ask your smart speaker to play the marketplace minute or find it wherever you get your podcasts. We were on the call yesterday when the Federal Reserve Chair said, there's only so much. He can do to get the economy out of this mess. I'm David Brancaccio America's central banker in chief offered a choose your word doer dreary forbidding assessment of the economy after his policy making teams last interest rate meeting before the election the outlook is quote. Uncertain given the pandemic Jay Powell left the world with a strong impression that interest rates will stay near zero until college freshman now becomes a college senior year twenty, twenty three, but Powell also made it clear. There are things the Fed cannot do marketplace's Nancy Marshall Genzer was on that video briefing and joins us now live what can't the Fed do We'll pell made it clear. The Fed only has the power to lend money can't make grants. That's Congress's job. These are lending powers not spending powers. The Fed cannot grant money to particular beneficiaries. We can only create programs or facilities with broad-based eligibility to make loans to solvent entities with the expectation that the loans will be repaid. And David Pell said, another relief package from Congress will likely be needed. He pointed out that roughly eleven million people are still out of work due to the pandemic. And this is the first fed meeting since Powell unveiled a new policy on letting inflation run hotter before intervening. It is at the new policy is the Fed will aim for inflation to come in at an average of two percent letting it go a bit higher if it's been below that for a while, even if unemployment is low the Fed to raise rates to head off inflation right away when the jobless rate fell, the thinking was workers could demand higher salaries pushing up prices but now the Fed will sit tight because it takes longer for the black and Hispanic jobless rates to come down. The idea is give everybody a chance to find a job without worrying so much about the economy heating up. But. We cover the wealth gap here would say about income. Inequality. He was asked about that a couple of times I asked him about it. He said economic inequality holds back the Economy Pal said people are stuck at the lower end of the income spectrum they have limited mobility they can't move for jobs but PAL said there's only so much the Fed can do about these problems. The thing is we don't really have the tools to address those we we have interest rates and bank supervision and financial stability policy and things like that but we can't. We can't get at those things through our tools. Pal said these issues elected representatives to Congress marketplace's Nancy Marshall Genzer thank you on Fed duty there this morning London's one hundred share index is down ten percent here, SMP and Nasdaq futures reach down about one percent. Today. We'll get the latest count of people who signed up for unemployment benefits in the last week, forecasters expect the number to hold steady at about eight hundred, seventy, thousand after layoffs a week ago more than thirteen million people were on unemployment that would be a historic high.
"fed" Discussed on Part of the Problem
"What's the benefit of the system if this is all the cost while the benefit of the system is that they can enrich themselves at your expense so when you create new money as you pointed out before you're not gonNA see a rise in prices immediately because like people don't even know the money's been created the store owner doesn't even know that it's not like the Federal Reserve prints money in the store. Owner is watching the Fed balance sheet and then goes okay better raise prices. It takes a period of time before the money gets into the economy and start circulating around and then the it's realized the money is less valuable and prices go up but whoever gets the money I gets to buy at the current prices and then they get the value of it going up and who gets the money I in the system. Wouldn't you believe it's the big banks. The same ones who wrote the legislation of the Federal Reserve Act the same ones who financed the worst president of the twentieth century. Woodrow Wilson and got him in office. So He'd sign the Federal Reserve. Act those same mother. Fuckers are the ones who get the money I so they get money for free that they can then loan out for interest they get it before the inflation's hit and they're ripping you off. This is now just already in this Kobe. Shit the Federal Reserve has extended trillions and trillions of dollars. Okay it's hard for human beings to wrap their heads around how much money that really is. But it's more you think of the biggest business you've ever thought of. It's way more than that way more. And they're taking it from you. It's the money isn't magical printing. More money doesn't add any more wealth into people's lives it just devalue the currency. That's out there. It's the same thing in effect as stealing your money. It just makes your money less valuable. If your money loses half its value or half your money as stolen the same fucking fit and this is how they get away with that and so when you look around and you see how the ruling class of this country just gets richer and richer and richer and believe me. They've gotten richer through this whole crisis. This is at the heart of it. It's the fucking Federal Reserve. So this is something that needs to be inserted back into the conversation in these crazy times that we live in. This is what's going on when America was at. Its IT'S A in its darkest hour the Federal Reserve came in and stole trillions of dollars of your wealth. That's the reality of the situation. This is a criminal organization. It's there's no constitutional authority for it. It's on it's the greatest scheme in the history of world of the world. It destroys the economy. It's taken away. We should be At at such a higher standard of living than we are if we didn't have this monstrosity of running the department of money and it should be ended or at the very least is Ron. Paul was pushing for. It should be audited. There should be a new movement coming out to audit the Federal Reserve to find out. What the fuck. They're really doing because guess what none of us know. None of us even have a right to see their balance sheet at least and other government departments. You can have these you know freedom of Information Act Request. Sir You can get some of these things released like we just had the Justice Department released. These like you know Transcripts in the testimony about Michael Flynn and the FBI. Notes was last time you ever saw any of that. Should come out of the Federal Reserve. Never okay so that's where there should be a big push to audit the Fed and the Fed and let the free market take over money the same way. The people look back on the the development of the separation of church and state. And how like how wonderful that was for humanity because it cut down on religious wars and all of this type of blake unnecessary bloodshed. A we need a separation of banking and the state and we might need more than we needed the separation of church and state but once and for all a separation of banking and the state let let the free market do its job and until then we really don't have a free market if the government's controlling fifty percent of every transaction that's that's a lot closer to communism than it is to capitalism. If you ask me all right at something yeah let me get a plug in here if you guys are interested in the stuff thirty minutes and on my last run your mouth. I talk about how they're using special purpose vehicles which is illegal to give all this money over to black rock and basically bail out the junk bonds stuff. You're curious no they've taken the scheme one step even further than their charter and go check. Run your math that start that that piece is like a half hour all right absolutely and just in general go check out. Run your mouth hilarious. Villian FORMATIVE PODCAST and go support. Rob The fire he needs. He needs more firewood for that. Beautiful fire a behind him. All right. So that's our back to basics episode on the Federal Reserve. Hope you guys enjoyed it. And I'll see you soon on the next episode piece..
"fed" Discussed on Part of the Problem
"Never go to the post office again. All right let's go back to the show. This was one of my first big things. When I found a Ron Paul and Liberty Movement in two thousand seven two thousand eight. I was really anti war. And that's kind of they pulled me it. And then they kept talking about this thing called the Federal Reserve. I was like what is this. And Away Ron go ahead just just a you know. Firstly it's interesting because it's the greatest con story ever if you've ever watched Like this puts. What was that the any casino heist movie you've ever seen? The Federal Reserve is more interesting because they convinced us all of the greatest game ever concerned about war ties into it. Because we wouldn't be able to go to these wars because you'd have to actually tax people you have to raise the money and people would be like. I don't really care about going to war with Iraq enough and so the Federal Reserve ties into the war issue. Because if you took it away you wouldn't be able to have these unfounded worse absolutely and that goes not just for wars but for every big government program you can think of. This is this is it is the great facilitator of big government. And as you said it's the greatest of robbery it's the greatest heist in human history. There's never been anything. Even close to the level at Bernie. Madoff is like stealing your change jar compared to what the Federal Reserve has robbed from the American people. I remember when I first heard Ron Paul talking about the Federal Reserve and I didn't know what it was. I heard the term a few times before I couldn't have even begun to explain to you. What a Federal Reserve was and he would describe it and I remember thinking to myself. This can't be right can't be right. I would have heard of this. Someone would have taught me about this. What's one of my teachers would have mentioned it? One of these fine people on the news would have brought this up at some point. It can't possibly be that. There is a a secret organization that's privately owned. That just can make as much money as they want and they can profit off of it and they work in partnership with all the big banks this this can't be real and there's no way it was created went by bankers writing legislation in secret and then bankrolling presidential candidates and congressman to get past. This can't be real but you know what do what I did. Go do all your own research. Go go fine ally in all of what was just said and you won't find one because that is the system. Here's the thing David Smith. You have to understand money's very complicated and we need bank elasticity and what we need to make. Sure that if there's ever a run on the banks there's some sort of a lender of last resort that people feel comfortable keeping their money in banks. We also need a working system. Where if the government's GONNA run a deficit and suddenly really really need money? There's some that we can lend it from and I believe that the origins it's because the bank actually had that money but then that's somehow translated to. Oh we'll just allow these people to just printed and handed it to us so at least it's not the government just printing money and having a deficit we borrowed it from other. People Chase Bank and we're GONNA from they just printed it. Because they're allowed to do that. They get the magical special power that will no one else can just print money invented and say hey here it now exists. They can do it and guess what they can also bail themselves out. That's right that's right. And why is it exactly that we need this elasticity? Why is it that the other system or like a commodity backed money system or something like that would be too rigid? Well there's basically A couple reasons that are given now one is to smooth out the business cycle. Okay because they say basically capitalism just has this natural tendency to have these ups and downs ups and downs. So we need a smooth that out we need to have a dual mandate where we're concerned about both employment and inflation okay. So these are their arguments. These are the official arguments for why we need a central bank. We need Fiat currency. And we'll examine all of those in in just a minute but I just want for its. Let's just say they're somebody starting off from zero not understanding it. This is how I would describe the Federal Reserve. The Federal Reserve is essentially the government department of money. Now they don't call themselves that they don't even call themselves government organization. But that's what it is. It is a government department. It's a it's a very special government department that's allowed to consider itself private and because it considers itself private it's never been audited. It operates in as much secrecy as it wants to put right. There's no there's no vote there is no right. There's nothing like that there's no even There's no pretense of transparency but You know that's But but it's not a private organization. They just use this now. They they'll give out some information sometimes but it's only what they want to so they'll give you know they just like. I think it was a in the last ten years. They just stopped giving out the m three monetary numbers. They're just like we're not gonNA do that anymore. You know feel like who profits off the Federal Reserve who owns the Federal Reserve. They don't need to tell you. What transactions have they made like? I said they've never been out of it. But they are essentially a government Department net they were created in nineteen thirteen by an active congress. That was signed into law. By Woodrow Wilson. The Fed chairman is appointed by the President. So to use an analogy. That I believe a bomb. Bob Murphy Used you know it's as if you said let's just say that Walmart or some company like that was created by an act of Congress. They weren't just a company that got together. You know is like Congress created in the Walmart. Act We built these stores Walmart and then the president appointed the CEO every few years. Would you consider that a private company? Probably not it's really more of a government Agency than anything else and what? They are is a Central Bank. So they print money and they can they can create as much or as little as they want to especially now that work since the nineteen seventy-one. We're off the gold standard or seventy three. We're off the gold standard so they can complete Fiat money. They don't even print it a anymore that much they really just create on computers and then they can lend it out and they basically can set a short term interest rates so they can lend money out to banks to the big banks for for basically nothing at this point. I mean the Fed funds rate is down to zero so lend money out to banks for free they. They can pay the money back if they want to. With no interest on it and then those banks lend the money out to suckers like us at interest so the banks make huge money just from taking money from the Federal Reserve and lending it into the economy that the the the money that we all use to trade and exchange goods and services It BY GOVERNMENT DECREE. We have to use it right there. Are these legal tender laws. You have to accept this money if you're a business anywhere and you have to pay your taxes in this money so the money has this value that is legislated by the government baked into the cake and they get the print as much of it as they want and handed out to their buddies who can then lend it out is that sometimes they don't even lend it out if you look back to what happened in the last financial crisis. They gave over all this money to the banks to lend down. They never liked it out now. Here's where I'm talking on my ass but I believe this to be accurate. They're not allowed to take the money from the Fed and then go put it into risky assets. They're not allowed to do that. Would they can take all the money that they have and spend it on risky assets and then take the Fed money and keep it in the reserves. Said they're shoring up their balance sheets and making more of those other funds available so I think probably part of why is I? They just keep the like didn't lend it out. That's what happened the last time around so I think part of it is because it allows them to get away with their more speculative bats and at the moment they might even be right. That's too speculative I don't want to say but were saying earlier about smoothing out the business cycle so there's two parts of that about that. That are truly insane. Firstly the idea is supposed to be to save when things are going. Well that's part of what the game is and they never do that. Government has never won saved. When there's a surplus events smooth out the business cycle and invest in a downturn. The other thing and I've never heard anyone say this. But if you look like a financial trendline and you know stock goes up and down. But it's up on a trajectory words knowing that works out well for everybody but part of what's going on at a boom and bust cycle. Is that your speculators. Getting WIPED OUT PEOPLE MADE BAD INVESTMENTS. People had the wrong signals and all of a sudden the crash. And we've got a purge the bad actors now of all those bad actors are being propped up by government or they're making male investments because they have bad pricing models. So then you're boom and bust cycle is going to be significantly worse than your natural cycle. And that's being is so in other words you have two problems with the government kind of interjecting itself. The economy is one is. I think he actually a road. What would otherwise be an upward trajectory in your trading bigger boom and bust because firstly your propping up the male investors and. You're giving people bad price signals. Yes that's that's absolutely right. And the idea that is is really just accept in the mainstream is that it's the nature of capitalism that leads to these boom bust cycles. But there's really no good working theory to explain why that would be. I mean if you think about right like economy as advanced as any modern economy as today there you could understand the reason why there would be ups and downs in certain sectors right like I don't know there's something happens I you know whatever. Like maybe there's like a bad harvest season or something and so farming takes a big head or maybe there's something like you know whatever you can think of in any particular industry that might lead to that industry having a boom and then a bust. You know just for example. Maybe we come out with some really cool cars and so everybody goes out more people go out and buy cars so the number of people who buy cars goes way up but these cars last a really long time like you don't need to buy new cars so then in the future since. Everybody already bought him now. You have a big write that you can think of in a particular industry whether it be a boom then a bust but why would it be the case that across the board we just have a good economy and then a bad economy and then a good economy and then a bad economy? And if you're at least thirty years old you've already lived through this to everybody has and if you're sixty years old you've lived through it several times where all the sudden that. The whole economy is humming along. Everything's doing great and boom. There's a big tank in the entire economy now. What would really account for that? We'll think about it this way right. If you are trading Every economic transaction is fifty percent money or just about everyone about like if I go to get a coffee at the store. We trade coffee for money. If I go to buy a car we try a car for money. A Computer for money. Whatever YOU WANT TO INSERT. This is what this is the central issue. So when there's someone's fucking with the money this affects the entire economy and this is why you see the boom and the bust and what happens is the you know it just like this why. I started by saying the Federal Reserve. Is the government department of money? Because I think most people certainly most free-market leaning people will understand that if a government department has a complete control on something it's it's GonNa suck and there's GonNa be all types of problems associated that with that just like every other government department. It's an and there's several reasons but the main reason is the problem of monopoly. Which is that. There's no competition. There's no real market and so things don't get figured out and you can just ask yourself why when you go to the say the DMV..
"fed" Discussed on Part of the Problem
"How are you? How's everything going by rub any more? Whatever I'm just I know I gotta figure out a new life plan myself. My my apartment's opened July. I gotta figure out what else. Yeah for quite a while. Yes three years. But whatever man if he can't do standup there's no reason to be in the city and I I knew a whole new plan here but you know I'm a mother. Plans in life gone amazing. Some really good at the plant is there's a lot of a lot of comedians are in a similar situation And we we talked about this on skanks like a few a few weeks ago episode and Bobby Kelly was on. We are saying it's like there's kind of this thing. Where for Comedians? Like who get a little bit older and have a family and stuff like that that that makes it a real big difference but there is this thing in general where you're Kinda like okay. There's all all the comedy clubs are in New York. And so you gotta be New York to be where the action is you know and after a while when you're in the situation I'm in this situation your in as well when you've kind of done a lot of podcasting and you've built up a fan base and really now you can kind of go on the road and fans will come out and see you already. It's less importance to be connected to the clubs. You know it's like it's less important to go run a ten minute set at the clubs when you're going out and doing a half hour or an hour in front of your fans and now where there's this situation where I mean a lot of a comedy clubs in New York City. Were barely getting by I. I don't know how many of them are going to reopen at all on top of that when his New York City going to be fully opened. A Comedy Club is an environment where you're really right on top of each other. I. I don't know that anytime soon. They're going to be allowing on hundred percent capacity in there and then once you take that element out of it. You're like oh so unjust staying here to be in a tiny apartment instead of having a big Nice space and then you know you can find them like an hour outside of the city or something like that where what like what. I did where you can get in really easily. So it's just I think a lot of people are kind of requesting what the plan is. I think you're not alone there. Yeah Me Knicker GonNa have to figure something out like partner Nick of three years there. You go okay so four. Today's episode I wanted to do something a little bit different. And it's something I was thinking about doing During the course of this wonderful lockdowns or thought we might start like a serious That I was GONNA call back to basics and go over some libertarian basics that I think are important because you know as as I've said before don't mean repeat myself too much but we're clearly moving into a different era a different time now In terms of you know everything but really particularly in terms of the size and scope of Government Liberty Verse State Ism which has always been the most important dynamic but now it's really even even more so than before it might have turned up their timetable of people willing to accept universal basic and electronic more. Like location monitoring by about a decade projecting. When you thought those things might come do I wanna say maybe like a decade? But now they're here. Yes that's right and On on every level in terms of I mean civil liberties the idea of civil civil liberties are basically suspended right now. The idea of even a pretense of caring about deficits and the size of government is completely gone. I mean you know. Every president so far has Railed against the spending of the previous administration like trump railed against Obama driving up the debt and Obama railed against George W Bush driving up the debt. Right and what we've seen in the last. Three months is is more deficit spending. Ben I mean probably ever in a couple years so there you know that. That's another as a awesome honest having such a fun Field Day. It like okay. If you take the worst case scenario that this thing's one hundred percent true then you have okay. So the worst economic disaster of all American history happened. There's a freak episode of some unknown novel. Virus never existed in the economy needs to be shut down. Because there's nothing that we could possibly do about if you take the liberal agenda of what Kogo Nineteen is. An OBAMA GETS OUT THERE. And does this whole thing is trump's fault and it's because of his lack of preparation. It's such a fun game that these guys get to play that if you know if you can spend the debt and enjoy the money while they're in office you look great and if the House of cards Krummel's while you're in there because it's your fault but look no matter what. The situation is whether the whether every claim every every one of the worst claims about cove nineteen is true and this was the best thing to do. And maybe we didn't even do enough or if it's bullshit You know what I mean. Or if it's a very what I kind of thing which is a very real nasty virus but these actions were not the appropriate way to deal with them and and caused much more long lasting devastation than the virus Was going to if that's the case or any of those things with the case. The reality is that we are quickly approaching. Forty million people just a filing for unemployment benefits for which a road towards jobs cases. Most people don't even want to go back to work. They're cleaning up on employed. Yeah that's that's a fair point to which actually kind of pulls in the other direction that the numbers in that sense might be a little bit inflated that they've pulled a lot of people into Wyoming to be laid off and a lot of people have been requesting from their employers that they may be laid off in younger stand. What I mean. Sure it's who would want to work for money when you can make just as much or more money in some cases from not working particularly if there's a virus out there that you're afraid of I'd rather stay home and collect the money and spend time with family by the way that's such the dummies game. Because now you're really putting your You're really putting your cards into the hands of the government that they're going to continue to give you a paycheck totally walking away from personal respond like for you. I'm not talking about like you might get some money now. You're better off doing your dumb factory job unless you're GonNa stay home and study something. Yeah no that's that's the case and I'm sure that the sitting home in studying something is not the case for the vast majority of people and no. You're absolutely right but it does seem to be an again. A lot of different things can be true at once but it does seem like the a lot of the politicians are quite happy to put. Just put everybody on Welfare essentially and it's a it's a scary. Thanks but one way or the other. The government kicked tens of millions of people out of their jobs. That's a reality of what's happening whether you think it was the right thing to do or not. That is happening right now. But the thing the topic I wanted to and for these back to basic episodes. Maybe I'll talk guys gas digital. Maybe we'll just leave these up and not put them behind the pay welcomes people. Ask me a lot of times for things to like. Oh you have a great like intro to libertarianism tight. You know episode where we can share around people who aren't Libertarians and convert them and a lot of times. I'm kind of in this situation. Where you kind of when you do a show like this. You have a lot of people who have been listening for almost decade. Then you have other people have been listening for a few years then you have someone else. Who's checking out for the first time ever so. I CAN'T EVERY EPISODE. Be throwing you into this shit because then it's like the people who have been here all along or they're already on level twenty. They're not trying to go back to Level One But for this time period right our premise as basically a been that we really need and have the potential for a new liberty moments. And it's never been more important and I think that a lot of times over the The last few years the the a lot of the talk of of the the Ron Paul days the liberty movement days hasn't been quite as sexy as some other topics if you're watching like a brawl between Antifa and alt-right or something like that you know it's like that's just all these cultural issues that are people are going to war over and a lot of them really important. I've spent a lot of time with west years talking about them. I I'm not trying to downplay the significance but they really sucked all the air out of the room for the issues that us in the Liberty Movement really wanted to put forward. Like if you're talking about I don't know like white privilege and transgender bathrooms and whatever ethnos states any of this. Other kind of just distractions silly issues. It gets a lot more clicks in a lot more attention than someone talking about central banking or the deficit. That stuff comes off as almost a little bit boring in comparison and I understand I understand what but now things are getting serious and is a whole lot of the ship that the people in the Liberty Movement have been talking about for years. This is all about government overreach and and you know so I just think this stuff is is important now and so. It's not a bad idea for us to kind of go over some things that we think need to be inserted back into the conversation and even for people who are on level twenty. Who have been here with US forever. It's not worst thing in the world to get a little refresher and to kind of all. Go over this shit together so thing. I want to talk about on this. Episode is the Federal Reserve. This is GONNA be Like a basic a back to basics why we oppose the Federal Reserve and want to see it abolished And and how much damage it's caused and the Fed I think is of all of the the the big issues from the Liberty Movement and this is this is what Ron Paul gets. All the credit in the world. Scratcher chain right Baron Paul. You've earned that there you go. He was the only guy who really like defied the odds to insert the Federal Reserve into the popular conversation. At least to some degree. I mean he had he was drawn. Tens of thousands of of people whose rallies and they were screaming and the Fed with passion and enthusiasm. That is pretty crazy that he was able to accomplish that. I I know people. I think it was both Bob Murphy and Tom Woods When Ron Paul was running were advising that he not talk about the Fed is Ron Paul. Wouldn't shut up about the Fed and they were just kind of like look. I'm with you completely but no one's GonNa care about this like you know you're not gonNA reach young people talking about the Federal Reserve talking about the war on drugs talk about Blah Blah Blah the war in Iraq all this other stuff s few care about and they were both like. Wow we were so wrong. And they were delighted to be wrong or they were like he actually got people really excited about this shit all right. Let's take a quick second. I WanNa thank our sponsor for today's show which is.
"fed" Discussed on Masters in Business
"Actions has helped markets and in their view. They look at The fixed income markets to corporate bond market is opened. It's a lot a lot of companies to get financing. It's allowed a lot of companies to stay business. It's loud a lot of people to see their losses get reduced and that the Fed is looking at that as being a a positive. What Buffett said is it is now but the very big risk is that as we move forward that distortion in markets that they're creating and they think it's a distortion for the good could wind up being a real problem down the road and he said I think the word used was an extreme problem down the road but then he also said doing nothing and just allowing you know this Market to sort itself out with any support could have meant that that extreme outcome happened now as opposed to later on so his suggestion was which is why. I'm bringing it up because I'm in that same camp. Is that while the Fed has made things better now. It's still a very open question as if they've made things better for good and if there are problems a year or two now because of distorted markets or Mel investment meaning bad investment because the Fed told everybody. Hey it's all okay go ahead plow your money into the market and then some investments go bad because we realized that we were buying them at the wrong price or at too high a value. And then you would say you're too from now yeah They've really created problems for the economy. That very well may be true if they had done nothing. Those problems would have been occurring now so I think what he's suggesting is what they might be. Doing is just shifting the timelines as opposed to repairing the economy to the extent that they think they are. I I WOULD. I would phrase it slightly differently. This is a hair the dog that bit you. You wake up with a hangover. You do a quick shot. The hanger goes away at least temporarily. We're still dealing with the hangover from OEM and Lo and behold hair. The dog is GonNa kick the can down the road a little bit mixed metaphors is. Is that what I'm hearing? You say to some degree here. Yes I think so. I think that they they have been able to you. Know to use kick the can down the road right since we're system metaphor segment. There's no easy in a foxhole. They're still cows crisis. We had to do something if we didn't do something that worst decline that we ever saw down thirty four percent in five weeks might have gotten even further worse the bad English there but in that would have created more and more problems but by kicking the can.
"fed" Discussed on P&L With Pimm Fox and Lisa Abramowicz
"As well as at Bloomberg Dot com time for Bloomberg opinion right now we turn to Bloomberg Opinion Columnist Narayana Coach Lakota former Minneapolis Fed president also professor of economics at the University of Rochester Nariaki. Thanks so much for joining us here. Boys we think about the response to the pandemic. The Federal Reserve Bank I think is generally getting very good marks from the marketplace in terms of acting early acting acting decisively. But you make the argument. That defense should really consider going negative in terms of interest rates. Get your thoughts there. Yeah thanks a lot for having me on You know I think. The chairman laid out the case pretty well in his press conference. He certainly didn't go make the next step of actually going negative with rates. Which is he said. The Fed has to be prepared to use all its tools to support the the economy and the recovery that We hope we'll be coming soon. And that that That means include to me means including going negative with rates Pushing rates down further would stimulate spending And stimulate on the part of household stimulate investment on the part of businesses as it always does and that would be helpful for the economy. What is your view? I mean I guess you know. People look at say Japan. Germany developed countries with negative rates. Just doesn't seem right. It doesn't seem like the right strategy the policy. How do you view this negative and insurance in general I you know I think what's what's happened? Is that Economies turned to them as would be true in the. Us case when the situation is bad. So you can't just look at raw correlation between WHO's using negative rates in their what their situations like and say gee it looks like all the the countries that have negative rates have poor are are not doing that well because they view them as emergency tool they only turn to when when the situation is going badly The other problem is there. There's a limit to how negative to being able to go are willing to go. And in some instances and a quarter percentage point fifty basis point cut in interest rates. It's helpful it's supportive but it's absolutely not a panacea for all possible. Economic ills ever done training appreciable amount of time as a policy matter before You know now you're taking a little bit out of my knowledge base but my understanding is rate did go negative for some time in the during the Great Depression but But other than that. No right it's not something typically in the toolbox for Fed so one of the things when we think about the actions by the Fed. Is that the concern or the the expectation the assumption is that this pandemic has relatively short life measured in quarters. How about if you know if it's just one in a series of waves of this virus and actually goes much longer? What does the Fed do then? I think that's a great question. I think the Fed and Congress You know I think it's an and treasury I think there's there's basically been been all these entities and the government have been working together. I the the perspective is by the time we get into this to the certainly begin to the fourth quarter of the year The economy is going to be in a very robust recovery path and The the the they won't need the further for the backstopping from from the Fed at that point and I think that's led to the Fed and other entities to say boy. The main job here is to keep businesses alive. Try to freeze the economy where it was in February of twenty twenty. Well that might be acceptable if you're talking about a three or four months intervention but if you're talking to three ten years I mean ten is obviously quite extreme but two three years. Even you're really getting in the way of the dynamic flow and processes it really drive the US economy where we want copies? Go Out of business. Because they're not as being as effective at fulfilling what consumers want and we won't workers to be able to move from job to job Because they're not there'd be more productive that new job than they were at the old one so I worry that These these interventions are really designed to be temporary as a shock. That comes more persistent. They're gonNA introduce more more distortions in the economy leading to to towards more outcomes so just real quick twenty twenty seconds. What do you think about the Fed's decision to kind of go into the corporate bond market? Yeah I think it's I I think that the so it's a questionable one because I think the fact that basically I think companies should be facing a lot of risk right. Now it's appropriate for them to be borrowing at high interest rates because it's a very risky world. I think the Fed's intervention is getting in the way of that signal. The market interesting enough to see how that plays out in the coming weeks and months and Arianna coach Lakota former minneapolis fed president and Bloomberg Opinion Columnists also professor of economics at the University of Rochester. We appreciate you coming on. You can read all of Narayan. His work at Bloomberg Dot com slash opinion. And OPIE. I N go. That's where you can find all of the Bloomberg opinion work which is so good and we love having the folks on here talking about what is going on in the markets in a broader implications.
"fed" Discussed on FT News
"Percent. They say it's symmetric metric. Which means that over time they should be sometimes above sometimes below? What that's worked out to be in practice? Is that the Fed like every other central bank in the developed world has had trouble even meeting its target and so there's a separate movement going on within the Fed as part of this policy review. It does look like they're gonNA come out of it with a shift towards what they call. Average inflation flation targeting which means that if they miss their inflation target for two years. They're going to promise to actually exceed their inflation target for the next two years so that over time it averages out to two percent because they've recognized that if you can't generate enough inflation as a central bank then you're missing out on economic growth that you could have had the problem with that is the Federal Reserve has what they call a credibility problem. which is that is not completely certain that they can generate even two percent inflation so already long-term in terms? The Fed is worried about meeting the price. Stability Part of its mandate. That's the bad news for the Fed. The good news is they're not worried about high inflation and the luxury of being a Federal Reserve. Not Worried about high inflation is being a Federal Reserve. They can accomplish things that people politicians like like not raising rates and sort of trying to see how far you can get the unemployment rate down and we've really seen a shift over the last year so within the Fed at the beginning of the year. Sure there was noise that they were worried about the trade war now. The rhetoric has shifted and they're basically saying look. We don't see any inflation. Let's see how low we can drive the unemployment rate. Let's come back to to these regional consultations Brennan because as you suggested that the gap between certainly where the Fed started off in their thinking and views expressed on the ground about monetary policy. Have those views panned out in terms of difference between the visa expressed in the consultations and those are the Fed chief Jay Powell and his team so so one of the things that you've heard in his rhetoric that the feds got this highly ritualized language that it uses to talk to markets and so people who watched the Fed for signals watched the shift in that language for clues on what's coming up and so he has actually started to take the events and referred to them as part of his ritualized language. You know he'll say people in communities that we talked to tell us that they're coming back into the workforce at right they haven't seen before again. I'm paraphrasing using. But it's something along those lines and it's align he repeats again and again and again in public speeches that means that even if they haven't finished their year and a half Long Strategy Review about how the Carry Carrie about monetary policy he's already telling markets. Look I'm going out to underserved areas. I'm going out to poorer areas. I'm hearing something different from them. And this is informing my monetary policy Halsey choices. I think the Fed has a big challenge. which is that? Historically Americans have been hostile to the idea of a central bank because of this hostility the Federal Reserve reserve sort of doesn't even further to itself as the Central Bank though it obviously is and it was constructed along regional lines and so the original construction of it was that they took these twelve cities and built the entire fed system around the existence of these twelve regional banks so now where a lot of the power particularly since the thirties is vested in the board of Governors in Washington. DC The challenges. What's the role of these regional banks? One way in which the regional banks of solve this is is that they're really focused on regional development. What these fed banks are doing? They're using what they call the convening power of the Fed which they've got great researchers and they have in some sort of moral authority people tend to trust the Federal Reserve as an independent arbiter and they bring together state and local governments and community representatives and local banks and they say look here the problems problems that we think we can solve. Here's our research says this is what would solve the problem now. Who's got some money to do this again? The Fed is a weird position because they have all these regional research authorities parties. That have recognized that you can solve unemployment problems in a very local way without national policy. They don't have any authority to change that. And so the very limited way in which the Fed can help is trying to keep the overall unemployment level as low as possible for as long as possible so marginally the Fed can make a difference there. But what's changed. Is the conversations that were happening at the regional fed banks at Boston Philadelphia. San Francisco are now happening with the chair of the vice chair. That's brand new. It doesn't seem that novel but for the Fed it is so it seems like these consultations have exposed a preoccupation with the cost of living and a fear of incurring debt at RAV and perhaps on raising money to expand. Businesses as policymakers might have hoped. Does that mean that. The Fed's traditional focus on cutting interest rates in order to stimulate lending in the economy needs to change. I think that there's A. There's a sort of parallel problem going on. which is that? The Fed is realizing that it's running running out of tools to sort of effect monetary policy. So you know with its policy rate already now in expansion at one and a half two one three quarters percent that's already perilously close to zero. They don't have a lot of room to cut so they've looked at other tools. The Fed for a bunch of reasons not WANNA go below zero. It does not want to repeat the experiment the ECB CB ran. It thinks it might be willing to do a quantitative easing buying up lots of assets and expanded its balance sheet in the next recession so it seems fairly fairly comfortable with that. It seems comfortable with for guidance. Telling people not only that it's lowering rates now but it's GONNA lead them lower for longer in the background and that's something that the Fed will never say but it's something that formal fed reserve shares have actually come together to say is that there's a concern that even those tools might not be enough the next recession and so to get back back to your question. The Fed does not seem to be openly willing to contemplate anything radical like by municipal debt right actually targeting. The kinds of assets at buys is it still is hoping that state local governments and national governments will step in and do this kind of spending one. The time comes. I am skeptical. That that spending bending will come but you know do I think the Fed should change its mission. That's a pretty big. Ask what I'd really love to happen for fiscal authority in the United States to understand that community based policies sort of fixing local transportation education issues is massively important for economic growth. And it's going to require some spending but I'm not gonNA hold my breath on that recognition. Will thanks Brendan and thanks to you for listening. Don't forget if you missed. Our recent episodes finance and climate change Putin's Russian reforms assumes all the multilateral leanings of German Chancellor Angela Merkel you can subscribe and listen on all of the usual pa-past platforms.
"fed" Discussed on FT News
"I'm Patrick Jenkins deputy editor and this is news in focus where we offer our insights into the stories that matter the the US Federal Reserve has begun to consult the public particularly in poorer parts of the country apartment or trade policy as a result policy. Wonks at the Central Bank of begun to reconsider the impact of their decisions on communities far from the centers of power. It with me to discuss. This is our us. Economics editor Brendan Greeley. But first let's listen to an exchange from one of the recent public meetings organized between local community representatives and fed governors even places to lower than rates are going to be even in lower and we're going to have less power over a business cycle even less ability to support maximum stable prices nonetheless. It starts with the thought that we have to get inflation back up to two percent we wanted to be medically around two percent. Do you think we'll have a hard time explaining that to the general public ideas. He is ahead to do that. I think you're going to need another three hours. said in the long term it will have an impact higher inflation. I think we agree but for many of our communities distance to the long term. We don't we just don't survive that. That's that's part of the problem. The business close is is people. Don't get to make the choice safer higher education Families just can't find the milk today. I think that's the challenge so Brendan we just heard an exchange there between Denise Scott who runs one of the nonprofits involved in the consultation process and Jay Powell is typical of the kind of views. Put the Fed chair during his consultations. It is that conversation really stood out to me. I was in the room when it happened. And it got a big laugh and basically what's going on is that the Federal Reserve has a problem. which is that? It's running out of tools to actually accomplish monetary policy generally. There's what's called the natural rate of interest. It's impossible to measure. We have to sort of estimate what it is. But it's this idea of what interest rates would be without any intervention from the central bank so the Fed and other central banks are watching this very carefully because their whole existence. All of their tools rely on the ability to undercut this rate to drag it down if that rate and inflation are very close to zero. They don't have any tools so they're really worried about the possibility of low inflation. That's something that central bankers talk about all all the time. That's what they're worried about now. Normal people who live and work out in the real economy. Don't think this way at all and so. The Fed is starting to realize in particular through having these public consultations that the thing that it is obsessed with which is a lack of inflation is something that is completely legally alien to every normal person and what people actually out in the real economy are looking at and thinking about and worrying about is the fact that at least in the US the cost of rent. The cost of healthcare. The cost of education are skyrocketing. That's the inflation they think about but the idea that the Federal Reserve would want to create inflation and doesn't make any sense to them at all. So there's this massive disconnected. The Fed has in the thing is trying to communicate. Doesn't make any sense to any normal person but clearly makes sense that they've come to this realization that they need to conduct this outreach effort but what particularly prompted it and I was organized. Well it's almost a bit of an accident accident. That turned out really well. which is that the Fed about a year and a half ago decided that it was going to really look into its tools and and those tools are both how it conducts monetary policy? And then how it communicates. How talks about monetary policy to markets and the public to make sure the monetary policy works and so Jay Powell is an an interesting chair? He's a different kind of communicator. And his press conferences and he's gotten heat from this from people who were involved in financial markets. His press conferences are much more. Colloquial than press conferences references have been in the past from Fed chairs the challenging part of that is if you are colloquial and plainspoken in monetary policy. You leave open the possibility of misinterpretation and by markets. The good part of that is if you are colloquial in effect presser. Normal people might actually be able to understand you a little better so he's already a different kind of fed chair as part of this review. He decided that he wanted to conduct. What the Fed has called Fed listens events where he's going to go out into the community Mary and talk to real people in real places about monetary policy you know? Journalists were all inherently cynical about everything and I was cynical about this when they announced it seems like a one time. Pr Effort. But when I went to these events and sort of watched him and watch the other governors in particular. Jay Powell seemed to be really interested. He was writing notes and paying attention and actively engaging with people and talking to them he actually seemed like he was enjoying it. And that's what caught. My attention to things have happened. One is they've now had wanted wanted. Every of the twelve federal reserve banks around the country is the cities. All over. You know Saint Louis Chicago San Francisco and internally what we can tell from the Fed minutes and had also some hints externally. It seems like they're going to continue to do this. So this thing. That could have been a one time. Feel good public affairs. Event has turned into away. The Fed actually conducts research. And it's changing the way the macro-economists inside the Fed actually conduct their research. What would you say the main lessons that Mr Powell has learned from this excise of listening to local officials listening to local communities especially in poor areas so one thing that he has said that several of the Fed presidents have said that researchers at the Fed have said is that they learned from these conversations that there's more slack in the economy than they had thought and what that means means is as the economy expands it pushes the unemployment rate farther down slack? Is the remaining number of people who could get a job what they've discovered is they thought that the long-term natural rate of unemployment was five percent four percent that's been dropping when they go to these communities one thing that came out of the event they had in Chicago. Somebody said look in our communities were always in recession. There's never economic growth and so they realized that there a lot of workers on the sidelines. Who you aren't employed? Who could be employed? There's a lot more slack in the labor market than they had thought. These are things that aren't captured in aggregate statistics of overall employment in the country. That are caught when you talk anecdotally to people in certain communities I think that's the number one takeaway and the other one is that people don't care about inflation or rather rather people don't care about low inflation low inflation is a good thing and I think that's a real disconnect and I think the Fed still wrestling with that their response thus far has been. Well how do we teach them that. Low inflation is a bad thing and I think there's another step coming. which is that? Maybe the Fed still needs to learn that it may have to live with low inflation because what people are really worried about is the cost of medical care the cost of housing in the cost of education. Let's take a step back here. You're talking about how the Fed is changing but what is essentially the main task of the federal. What has it been up to now? And how is that different from other central banks around the world. Well what's interesting about. The Fed is that they have a dual mandate most central banks in the developed world their mandate is price stability. They just have to make. I'm sure that inflation is contained right. They've generally adopted a target of two percent inflation. The Fed has an interesting mandate it also has a slightly different history than other central banks it also has the mandate of full employment and so the Fed has defined its inflation target as maintaining two percent. It hasn't really defined what full employment is so it actually has this obligation under the law that charters it from Congress to pursue price stability and maximum employment. So it's starting to figure route that maybe it needs to focus just as much maximum employment as it has in the past on price stability. Tell us about that gradual shift in how these jewel goals have been sued in recent years. Well there's a separate thing going on at the Fed which is that. They're realizing that they have been unable to meet two percent inflation. Their target is two.
"fed" Discussed on Marketplace with Kai Ryssdal
"In Los Angeles. I'm Kai Ryssdal. It is Monday today. The sixth of January. Good as always to have you along everybody. There are military and national security challenges aplenty in the current state of affairs between the United States and Iran all or most of which are are being covered elsewhere there is though a historical and economic context. That's important here a context that may well shape. How at least some of what's happening turns out sanctions of course and the threat of more of them? Hussein scarring is an emeritus professor of business and International Studies at George Washington University. Welcome to the program. Thank you you for having me By Way of background into Fr- refresh right he's probably worth pointing out here That sanctions have been imposed on Iran by virtually every president since Jimmy Carter right that is correct. Okay now do they work. Have we gotten what we want out of those sanctions. Well there were times that Sir we kind of got what we wanted but really sanctions. Do not work immediately. They take time because you're trying to cause enough pain on the the country to change his policies and we kind of got there in two thousand and fifteen. We signed an agreement with them. But but that's about got it right. That is the nuclear deal. Of course the president trump has pulled us out of. Let me ask you then the pain that's being inflicted. What does that look like in the Iranian economy today? Well the things that you notice is that Iran of course there's been very little external or foreign investment in Iran economic growth has been quite bad in Iran largely because the sanctions but also because of terrible economic policies but also because of the Iran Iraq war which devastated the country in between one thousand nine hundred and nine thousand nine hundred eighty eight so you have had slow economic growth the price of imports of Ghana and they have not been able to get get the things that they want and the quality of life has really gone down you are. You're born there right yes. I was born in Iran. I left when I was nine years old. I I imagine though you still have friends friends possibly family when you talk to them What's it like well? They are of experiencing hardship. I I mean I remember vividly in the case of a person who was willing to go to jail. He in fact went on a robbed a grocery store a bottle of milk and went to jail because he needed milk for his children Henrik and so things are bad and I think that the they used to blame a lot of this on the regime but I think that in in the last few weeks especially over the last weekend a lot of the blade is being put on the United States. It's worth mention here just On the way out that it's not just. The united estates has sanctions on Iran. Right now there are European Union sanctions also United Nations sanctions. Yes but I think the kinds of sanctions that the United States has which basically financial sanctions and what they do is the following. They tell every country if you're institutions your banks have business dealings with Iran Ron then you will not have access to the US market and so the companies are afraid that if they do anything with Iran then the United States will sanction there. Talk to me for a second about oil would you. Because that of course is their primary source of foreign reserves and they're exporting almost nothing now right that is exactly correct. Iran basically it's exports exports. I would say by far the most important oil. Then there's natural gas and petrochemicals and basically all of your exports have gone down to almost zero and the only export outlets for Iran's export is basically to Iraq and to Syria. Okay so crystal ball this for me and this really will be the last question. A If somehow there is a climbdown from the current tensions and some mutual agreements are reached about the future course of events. How how long does it take the Iranian economy to to get back to something near normal? Well I think it all depends what you mean by near normal I think near normal normal for me. It's a country that is run. Well that the decent policies a lot of interaction with the rest of the world. I think that will probably take take two three years. But Iran Yin's to feel the beneficial effects. I would say within six months interesting. How cintos Cari is the emeritus Iran professor of business and International Studies at the George Washington University In Washington DC professor. Thanks for your time Sir. I appreciate it. Thank you for having Me Wall Street Street on this Monday traders choosing to see the calm and not the storm the major indices up oil down gold. The historically safest of havens was up just is to bid. We'll have the details when we do the numbers it's entirely possible. You missed it over the weekend given all the other stuff but Ben Banenky. He ran the Federal Reserve Coupla a couple of years ago he had some interesting things to say at the annual meeting of the American Economic Association in a speech entitled The new tools of Monetary Policy Burki said and this is a quote. The Fed should also consider maintaining constructive ambiguity about the future use of negative short term rates now first of all constructive ambiguity. How much do you love that? Very Greenspan Ian if you ask me but also negative interest rates. That's a big deal coming from a very important Horton to communist the whole idea of negative rates. Were depositors have to pay the bank to store their money. Forum is to make saving so financially unattractive that it's better to spend spend the money invested in other words it's unorthodox though yes happening elsewhere in the global economy but as marketplace's got song reports from Washington the Fed might well l. need get creative the next time the economy goes south the fence main way to juice a slowing economy is to cut interest rates so banks lend more and businesses and people borrow more but a decade ago in the great recession interest rates. Were near zero. So the Fed got creative and bought bonds to lower long-term rates still dartmouth economist Andrew. Eleven with working for Fed Chair Bernike at the time says that wasn't creative enough. The toolbox really wasn't adequate in two thousand ten and two thousand twelve. We just didn't know that at the time. But in in retrospect I think it's pretty clear now banenky wants to add a controversial new tool to the box negative interest rates for banks that would discourage them from stashing shing their cash in the Central Bank and nudge them to lend even though the economy is still growing Levin says it's good to have more options for when things stall again the level of interest rates. It's around one and a half percent which means there's really not much room to cut much less room than there was ten or fifteen years ago to offset Saturday recession or some other kind of sock. The Fed Chair Jerome Powell has not endorsed pushing the so called the Federal Funds Rate Below Zero but Burnett. He's trying to change his mind. As is Princeton's Alan blinder. A former fed vice chair. The Fed has ruled out several times. And pretty emphatically going negative live on the Federal Funds Rate Bernanke. Who was advocating? And I certainly agree that. They shouldn't rule out for Nike. Encouraged the Fed to employ quote constructive ambiguity. That is to be unpredictable as to whether and when to make interest rates negative in Washington. I'm Scott Tong for marketplace. The corporate news of this Monday of the Bovine Variety borden dairy the Elsie. The Cow Company is filing for chapter eleven bankruptcy protection. The one hundred sixty three year old firms had its current debt was unsustainable back in November. You might remember Bordon's bigger competitor. Dean foods filed as well and is said to be looking to sell itself to to a dairy co op market place's Kimberly. Adams looks at what's going on or maybe what's going wrong in milk. The milk industry is doing. Okay just not the stuff we drink. According to Peter Vitaliano an economist with the National Milk Producers Federation total use of milk what we call commercial use of milk produced in the United States actually been growing pretty consistently for years. Now it's the fluid part that's declining. People are eating plenty of cheese and yogurt and other milk products but vitaliano says we only drink about twenty percent of the milk produced plus the growth of plant based drinks. You're soy milk. OAT Milk even banana milks are eating away at the market. Share for cow's milk so the consumer changes the demand patterns have changed and Dean Foods and borden are just I in the wrong sector. Merrin Bozic teaches about the economics of the industry at the University of Minnesota. Another problem for milk processors. Is that big chain grocery tree. Stores don't really need them anymore. If for example Walmart who has been buying milk from Dean foods and others up until recently now they make their Camila dental implants all. These problems left an opening for private equity firms to swoop in Borden CEO. Tony Sarsam says some of the strings. Attached to investments didn't really set the company up for success. We found ourselves in a situation where the debt was outside for the size of the business and for the basic needs of the business to actually actually grow and prosper size says with the chapter eleven restructuring board and can work with debtholders to sort out a more fluid arrangement in Washington. I'm Kimberly Kimberly Adams for marketplace..
"fed" Discussed on Freakonomics
"Hey let me ask you this. Who in your view is the most successful fed chair in recent history and why Oh my gosh. I can't even pick a favorite movie. I really struggled to pick favorites. It doesn't have to be a favourite. Maybe just describe some either actions or temperament or handling of term of Fed chair in you know medium recent history less four five six decades. Whatever you just particularly admire but tell told me why okay okay let me talk about Janet Yellen because I worked so closely with her so we're Janice President of San Francisco Fed before she becomes vice chair and we're in the financial crisis and she's got all these economists over the system working on these issues studying things calibrating brady models and we're giving her all the research and we feel like we've done our jobs impart because we've given all all the research and at one point and I won't use the the phrasing she us but at one point she adjust frankly had enough and she puts both hands down on the table like and she says there are people there was a word in between these are people's lives and it was this emphatic call to we are not making widgets here like what if this is your mom and dad out of work would if you lost your home. What is your not studying people losing homes. What is your losing homes and it was that level of vulnerability and humanness that I I said okay that's a leader that I get and so then she goes on to be the vice chair and I saw her do this. In her vice-chair work and she was the chair. I saw her navigate a very rough waters on. Should we raise earlier than we did. As an institution would just full employment really look like and I again saw her. Stay steadfast and essentially say you know on my watch. I'M GONNA balance both sides of the the dual mandate and think about financial stability all at the same time so you asked earlier is due condoms really believe that economics is about people and we'll Janet Janet Yellen does so current. Fed Chairman Jay Powell has had an interesting tenure to say the least given the I guess iconoclastic nature of the trump trump administration. There's never been a president as far as I know in recent history. At least who's been so outspoken about the Fed and its moves Here's a couple recent tweets. The president tweeted. We have the greatest companies in the world. There's nobody even close but unfortunately the same cannot be said about our Federal Reserve. They have called it wrong. At every step of the way another tweet the Fed has got to do something. The Fed is the Central Bank of the United States not the Central Bank of the world. So can you describe five what it's like to be a central banker in a time when the president is willing to publicly rebuke the central banks work. Well let me see. I say that we all live in a much more open world than we used to that. We've always had disharmony. There have been times when people think the Fed's Ed's not doing something right or this group isn't doing something right. Another government institution isn't doing something right the thing that's different now and I would say it's globally different is that that things are just more accessible. Twitter has made all the debates that used to be behind closed doors and we'd learn about them long. After people had departed their positions have been to live live but there's always been that unspoken rule that the Fed because of its political independence. The president was not supposed to be in conversation with the Fed certainly in a public arena so that's changed. I don't need I'm not a historian but I am a casual student of history and when I go back and read periods of history things look as contentious and debatable. It's just very public now and what I want to say about the chair is that I admire the fact that the chair and the Federal Reserve has not gotten caught up in conversations about are we worried about our independence and instead is restated the principles that made us independent in nineteen thirteen and has continued to do the best work so let's talk about the economy generally. It seems to me like it's in a really interesting sort of strange place. Unemployment employment is very low. Wage growth is small but it is positive stock. Markets are at all time highs. You recently told The Wall Street Journal. We have good solid college. Domestic momentum consumer confidence is high consumer. Spending is solid. We see a strong labor market so the fundamentals that keep the economy going are present and yet. There's a great repeal of anxiety over the economy. Some of it may be cyclical. It's been a long time since the recession but what do you think of the sources of that anxiety over the economy and you think they are legitimate. We'll I think there is something to the idea that people get nervous. When expansions lasts a long time we have this whole group of literature that says expansions don't don't die of old age and yet everybody thinks they do so. I think there's just general nervousness. When you hit your ten year mark the longest expansion in history the natural human tendency is to think it can't last forever then you look at it in the data and there's been a lot of uncertainty. There's trade uncertainty. There is brexit uncertainty. There's geopolitical uncertainty. There's just the general financial volatility that comes from just markets trying to figure things out that creates uncertainty so this just creates creates a level of angst that makes people even more cautious than they would be if they were simply just thinking the expansion would run out of gas because it's old so all those factors actors are ones that create mood issues and you know the big question that I've been wrestling with the last nine months is what's going to win the data or the mood. If you look at the data the data are good apart from business investment. There really isn't any week indicator in the US economy in the business. Investment is unpredictable because of the uncertainty largely around trade. Would you argue the no. I don't think it's just that I think that's a part of it for sure but one of my ways I spend a lot of my time is to go out and talk to business leaders and community leaders when I talked to business leaders and this has been going on since November October of twenty eighteen so I start talking to them about this uncertainty piece back when uncertainty starts to spike and they weren't talking about trade. They thought that would be resolved. They were talking about the expansions getting along in age and so we might just simply are footing so then that uncertainty got replaced by Brexit then it became trade that it was the debt ceiling now. It's trade again so I think for businesses they've been on the cautious fording for a long time but most of the people I talk to are still executing on what they call their plan as which means I'm investing enough to continue growing but I'm not going to invest in these marginal projects that are really going to take me to the next level until I see how the lead land shapes up you know oh it's easy to focus on the problems or the faultlines or whatnot but let me ask you something about the strength of the US economy so if we were talking at the the peak of the great recession and you said that you know the US economy which was the primary driver of the great recession and was hit particularly hard that the US economy on me would be one of the world's strongest and steadiest economies ten years later. Would you have believed it. I mean I wouldn't have so I guess what I'm really asking is what does that indicate does it indicate some intrinsic strengths of the US economy that are typically overlooked in the daily commentary well. I guess I disagree we on that I mean I thought we were well positioned to get ourselves into a better positioning in and out of the situation we had but it's a good question about. Why did I have any of that optimism. We were really hit hard early on so we were in the emergency room and when you're in the emergency room you bring an all hands on deck approach. You know it's easier to throw everything you have at something when you know it's a really bad problem we were among the most severely affected early on but that meant we put everything we had to it and we worked hard to to stimulate the economy. We had fiscal packages. We had monetary policy packages. Did you know variety of moves outside of even the the interest rate to try to stimulate the economy so that was where we were we recognized at the time that this was a long hard slog. It wasn't lowered the interest rate and then as soon as you saw any green shoot you go back to normal it. was you gotta be lower for longer on interest rates. You've got to be stimulative on the fiscal side. You've got to be helpful on the relocation retraining side. You basically had a once in a lifetime. You hope shock and you have a lot of work to do to get you out of it there. There is this sort of rising sentiment among some economists rows chetty comes to mind and also among the occasional presidential candidate. Andrew Yang comes to mind the idea they're expressing is automation and AI and other technologies advance the very nature of work will continue to change as well the relationship between humans and working that we aren't really well equipped to handle these changes structurally and we're not that nimble so what's your end the feds position -sition on that complicated problem so here's the deal of course. We need to think about structural change. The economy is changing at a rate of speed that looks like like something that I'm sure people who didn't have electrification and they got electricity and then we had assembly lines felt but it's happening in so we need to think about what is our future. Look like there should be a high bar for change because change is difficult and we don't want to tear down things just to say. We did it but there should be this considerable I thought given to how do we not solve the problems of fifty years ago but how we solve the problems of twenty years from now well. Can you give me some specifics. What what kind of structural changes specifically would you advocate for them. The question I have is we haven't revised our social safety net in forty fifty years ears. Should we take another look and see if that's the right thing to have at this point in time in the modern workforce are the systems of retraining unemployment insurance divisions between welfare programs versus entitlement programs insurance programs versus entitlement programs. Are those the right definitions missions. Is that really helping family when they have an economic shock find their footing again. I love to hear your thoughts on a universal basic income mm-hmm you this was something the Nixon administration tried to get through and we ended up with supplemental security income instead and the reasons that they couldn't get Republicans and Democrats to agree and they couldn't get lots of people to agree because the concerns about universal basic income where that would be a work disincentive so I liked the principle of let's think about what the social safety net should look like in the future and let's make sure that we're taking care of people who really have fallen on hard our times and can't take care of themselves. I think we oversimplify the problems to make them easy to understand but the actually then end up not being very effective in maybe it's this time in our future complicated world just recognize policies or complicated seek about trade. The idea that trade is good for everyone is still true but it's only true that it makes everyone better off in real time if we redistribute the proceeds from the trade more evenly against the people who got displaced by it so that's an obvious obvious thing we could tackle. That's part of the social safety net that we've only waved at honestly what you just described. That disequilibrium is kind of consequence. It's a quince of the globalization and shifting workforce at a lot of economists twenty thirty years ago told us was going to work out better Larry Cats. It's you know one of the most well regarded Labor economists in the world has admitted recently that you know we didn't get very right. We Mis underestimated the costs for people people who would be misplaced so to people who have lived back. What do you say to them when you as a Labor economist working at the Fed now now says hey this time we get it this time we understand this time. We're going to make a better plan so thirty years ago. Economists honest writing about various problems were using what we now call partial equilibrium models. We're looking at the narrow slice and some some of the assumptions embedded in trade dislocations were that people would retrain they'd get some subsidy from the government for retraining and then they would easily reenter the workforce in a different skill so there would be a painful transition costs but there wouldn't be this very large friction that prevented them from ever reentering or displaced him forever ever so we completely underestimated the costs because we were looking in this very partial equilibrium world so the answer to people isn't trust us. This time will be different. We got it right. The cancer is the public should be asking these questions. Okay I get it. Trade is good. If you redistribute the proceeds powers that redistribution going to happen and how am I going to get retrained not economist simply got it wrong and we shouldn't trust them again. I think it's revisiting of the social contract. What do do we mean. When we have a program that has winners and losers. Do we simply accept that cost or do. We say you know what as policymakers we have to find a way to mitigate that difference and my work is a public policy. Person Or public servant is always been. It's our job to serve the whole public so we help mitigate that different. You can't always do it but certainly one generation from the time it happens. We should be able to do it. That should be our goal Tell me something that you believed for a long time to be true until you found out that you had been wrong or if wrong is not a word that resonates nicely. Tell me something substantial that you changed your mind about how and why the the data tell us the whole story. I was a true group believer in the profession of my training that I could look at the data if I studied it and I did natural experiments and used aggregate data and I read everything I could possibly read. I have a real good line of sight into what the reality of a situation was and I was totally wrong and I had had this hit me right in.
"fed" Discussed on Freakonomics
"Fed after starting out as a high school dropout so even in that bad fortune you had the good fortune of having a a kind of safety net arise around you that you wouldn't have anticipated. Your couldn't have foreseen but you know I'm I'm sure that for many people when they have such misfortune that safety net doesn't rise up some curious how that specific period of your life informs the way. You've approached your economic research. It made me realize that we're leaving so much talent on the table think think about full employment if we have so many people sidelined and we don't take advantage of them there were restricting them for sure but we're also restricting our economy so it becomes a key theme in in everything I do and it it goes all the way back to the the time I fell through if not by good luck and good fortune I would have been one of those people and I never would have been married daily early on freakonomics. What did your siblings ended up doing. My sister is a medical receptionist and both my brothers have had episodic employment in construction or other things and you know just living on the boom and bust of whatever the economic cycle brings them and you know they're not in line to be the first people employed because they all dropped out of high school. We all dropped out of high school in the end and while we all were able to go back and get a ged eventually eventually. It isn't something that's easy. If you don't go beyond and GATT additional education I know there's a lot of research showing that shocks to the system mm-hmm as a child and it sounds like your family had a lot of different shocks to the system are really influential downstream and employment education outcomes and so on it sounds as though your family is I guess a median example of that and a lot of ways yeah shocks you experience when you're young wrong they affect your parents and they affect you and the ultimately affect your children and in my case they have affected my nieces and nephews who are raised by my siblings and so so shelly and I my partner have been trying to interject but these are strong inertial pains essentially and it takes escape velocity at every generation even my nieces and nephews to lift them out and so you'll see more people in my extended family continue not to go to college then who go to college all right so let's drill down a little bit on education as a driver of economic success. Obviously the federal government is not in charge of education although it does have a hand on it in a number of channels so let's just take a couple examples that are problematic one. Is You know. US Educational Standards Compared to other rich countries. It's relatively quite quite poor and then you know higher. Education College is is problematic from a financial perspective from no others. We've seen massive massive college tuition debt skyrocketing so if you're pointing to education the the big driver of success it's very easy to point to those touch points as not failures outright but real problem points it would seem as though things are not moving in the right direction so make your best case that you and your colleagues at the. Fed Reserve have some sense of what to do because otherwise it feels like you know you're saying nice words and thinking nice thoughts but the evidence for successful outcomes isn't there we'll. I'm undaunted by unsuccessful pasts. I just meant to be harder for the future so so it's more than nice words though now the jury's out about whether we move the needle but we would quickly put the ones we've tried and didn't move the needle aside and start on something new you my go-to low income communities and not a single person in those communities says that a college degree isn't worth it so then you ask low income communities. What do we need to help your students get college ready. They can teach them the reading and writing and the arithmetic part of it what they need is the social fabric that supports those kids and allows them to see themselves in the future and so here in San Francisco we have variety of educational programs but one that we're really excited about right now is the first gen program and we're building virtual bridge for people between High School and college and in that were very influenced by the research of course she wouldn't be surprised that the most likely reason kids drop out in the first semester isn't the funding it's fitting in is not feeling like they belong and so we have over a hundred and fifty first gen employees and we're building this basically virtual posse coming up after the break we ask Mary Daly to name her favorite fed share of recent history and we find out why why it's so hard to read even the near future of the US economy. The big question I've been wrestling with is what's going to win the data or the mood. It's coming up up right after this freakonomics radio is sponsored by state farm state farm believes in strengthening communities where the challenge all state farm employees and agents to give back.
"fed" Discussed on Freakonomics
"Your host Stephen Duffner the when the Federal Reserve Bank is in the news these days. It's usually related to its most public policy tool the setting of interest rates as the global financial meltdown and great recession set in the Fed under its then chairman. Ben Bernanke dropped rates to zero. This was in two thousand eight and they stayed there for seven years. The idea was zero rates. Were necessary to prevent a depression and help the economy rebound. Burundi's successor Janet Yellen finally began to raise rates confident. The recovery was was secure in two thousand eighteen yellen was succeeded by Jerome Powell who'd been installed under the newly elected President Donald Trump Powell also oh continued to nudge the Fed's rates higher encouraged by a robust economy and record stock market highs most monetary policy veterans felt that Powell all was playing just right in this environment. You didn't need to make money too cheap and you also didn't want to spike inflation but not everyone agreed with Powell and his most vocal critic almost right from the start happened to be the president of the United States that I think the Fed is out of control. I think what they're doing is wrong. Along the Fed is technically and historically an independent operation. The president is not it's boss but trump has very publicly encouraged how how to drop interest rates despite the relative strength of the US economy why there are any number of reasons other countries central banks have kept their rates low. The European Central Bank's rates are currently set below zero. There's also the ongoing. US Tariff War with China trump macy low oh rates as a useful counterweight in that battle as well as a means to avoid a self inflicted. US economic slowdown should the tariff or escalate furthermore the more the global economy is showing serious signs of slowing down in any case president trump has leaned hard on the Fed to cut rates and in the last few months Jerome Powell and the Fed have done just that twice I in July. We decided today to lower the target for the federal funds rate by a quarter of a percentage venage point. It is intended to ensure against downside risks from week global growth in trade policy uncertainty and again just last week and the Federal Reserve. It cuts the bench mark quarter of a percentage point. The federal funds rate is now one point seven five percent two percent of the Fed's policy setting committee. It is uncharacteristically divided as to the future direction of interest rates. Drome Powell did say there may well be further cuts trump for his part is not remotely satisfied. After the most recent cut he tweeted that Powell and the Fed have quote no guts no sense no vision. He said he wants rates brought down to zero or less a few months ago. We had Gary Cohn on our show. He's the former head of president trump's national economic council. I'd ask cone whether Powell was thinking about interest rates purely on the merits or as a capitulation to trump's twitter demands. I'm going to hope it wasn't I surely hope and I almost pray that what the Fed did was in reaction to what they were seeing in. The data that they felt felt there was an actual slowing of the economy and they were in the wrong place so we thought it might be an interesting time to hear from someone at the Federal Reserve up to learn what they are seeing in the data and what they're doing about it. Mary Daly took over the Federal Reserve Bank of San Francisco. Just under a year ago she started working there in one thousand nine hundred ninety six one of her mentors was Janet Yellen who before becoming chair of the Federal Reserve ran the San Francisco Fed from two thousand four four to two thousand ten and for those who don't fully understand what the heck the Federal Reserve Bank is or does and I honestly really kind of include myself there. what don't you tell us what it is and does so let me start by telling you the banner we put on the Front lobby of our bank in San Francisco and it says right as you walk in the door. Our work serves every American and countless global citizens impractical terms that includes three things we work on supporting a healthy economy through monetary policy given a dual mandate. The Congress gave us we are looking to achieve full employment and price stability but the real thing the underpinning of that is a healthy economy so that everybody has an opportunity to participate eight to their full abilities. The second thing we do is we work on financial intermediation so we're in charge of regulation and supervision to many of the banks and financial institutions itution economy and the real goal there is to ensure that there's interconnectedness among people so that again everybody has access to you savings and wealth accumulation and investment to allow them to fully participate in the economy and then the third thing is the payment system and we are responsible for the safety and soundness the payment system and the piece that everybody knows really intimately is cash the dollar the coins and dollars in her pocket so this sounds like if the Fed word magically tragically disappear tomorrow the way that some people on some fringes occasionally wish for a whole lot of things would happen. Yes yes and when people are asking questions about will why is the Fed getting in the way here or why. Is it doing this thing that I don't understand stand or agree with. It's largely not about they want the Fed gone it's really about they wanted to work more effectively and our the job our mission is to continuously listen to people so that we can take that in but we do know if we would disappear then the risks that were present when we were created nineteen thirteen would once again merge and that was a much worse situation than any of us want to repeat those risks were a series of financial panics panics and bank failures this led. Congress to pass the Federal Reserve Act and the establishment of the central bank the goals then and now were to you stabilize the banking sector ensure the free flow of capital and keep unemployment and inflation low so yes. The Fed has the reach to affect just about every every American every day and billions of other people but it seems to approach this mission at a serious remove the Fed doesn't seem very interested in explaining Y for example a country as rich as ours has so many people just one step away from financial ruin as Mary. Daly's own family was or for why we built an economy that's so good at providing cheap food and clothing and TV's while the cost of healthcare and higher education in real estate have spiked baked beyond the reach of many. Mary Daly does seem interested in wrestling with these dilemmas. She hosts a podcast called Zip Code economies where she travels travels around her region to find out what's happening on the ground. There was an earlier podcast called twice around just talking to my nephew just started his first semester. Mr In college in Missouri One of the state schools and he went in wanting to be a math teacher and he was asking me is a math teacher good career. It's really really want to do but I know. It doesn't pay very much many times. They said well. It depends on what you want your life. If you really want to teach math ask you have to realize that you can probably going to have a smaller home than people who want to work in the stock market and that's okay if those things that matter to you or teaching math and and you don't actually care about having the biggest home in around the block or something of that sort daily gets into a lot of topics that you wouldn't expect a fed president to get into gratitude the nature of facts how a person should know what they quote deserve serve. We have to know the people we serve and if you don't engage in these deep questions of what makes people do the things they do are people missing out on opportunities because they don't actually count the benefits of some of their actions. You know think mentorship. We often thank well we discount the benefits of future. Creations of our of our men teased because we don't see them. These are all things that go deeply to issues like gratitude gratitude and are you getting what you deserve at. How do you even think about that. Those are things that are integral to doing our best work as policy makers loose. That's how I see it. You've said that people misunderstand economics as the study of data or finances and you define it simply as the study of humans kind of psychology. Oh Gee writ large now personally. I would like to think that your definition is legit because I think it's really important for calmest take human behavior into account but I would argue that most economists are not very concerned or maybe just not very good at describing and predicting and maybe influencing human behavior and furthermore I would say most public communication from your own organization. The Federal Reserve Bank certainly doesn't sound as if it's about or intended for actual humans so oh tell me why I'm wrong and you're right that economists like you even the Fed really is about understanding standing people humans social interaction etc etc.. I guess the question I ask myself is why are the perceptions of what economics this is even among economists so very different than the reality of what we do. One reason is. It's really hard to be vulnerable. It's really difficult to say we don't know I'm trained to be quantitative. My whole ethos is about quantitative measurement trying to figure things out but if you do that and I think there are many economists reach this point in their career. If you do that you eventually run into the wall that is the data aren't the answers they're part of the answer but they're not the complete picture and to the. Fed I think that's a reasonable criticism of us as an institution that we haven't haven't always been forthcoming about the people part of our job but we recognize that when Jay Powell took over as chair the very first thing he did is said we have to go out and do this program called. Fed listens and it wasn't just about. We want to hold ten research conferences. We're super good at research conferences but but he said we want to go out and talk to community people about monetary policy. We are not very practice at that so the American dream is a famous and beloved of concept and it's a concept to my mind certainly describes your life your accomplishment but more and more people argue that the dream is not dead at least greatly lately diminished so let me ask you in a nutshell is the American dream dead or alive or maybe better on which dimensions is the American most most alive and on which dimensions most in trouble so here's the thing I've learned over my life. The American dream has has always been mostly emotional and then over periods of our history. The facts have correlated more nicely with that aspiration and sometimes they failed us but it hasn't been that in our beginning of our history it was great and now in the later part of our history is less great. It's gone back and forth all you have to do is go back to the Great Depression and see that it wasn't always glorious so what I see is opportunities to leverage and amplify things that work and fix six and boost the things that don't so if you look at the chances that someone born in the lowest income quintile can rise up to the middle or have them ability beyond on the first or second quintile they rise to about average chances that anyone can move anywhere if those kids get a college education and she think wow the American dream is alive and well fantastic and then you look at how many kids born into the lowest quintile of the income distribution actually get a college college degree and is less than ten percent and so then you think well. That's not so great so that's where the American dream gets complicated. Yes it is absolutely true through that. Get a college degree. You can become someone like me but we haven't brought me to scale. We'll have so many examples that I become the norm and nobody asked me about my story anymore because they see so many people around them who have lived that exact story and that's where I think the American dream the aspiration doesn't fit the data daily was born in nineteen sixty two. We're growing up in Missouri and my father was a postman. My mom stayed at home. Tom And we didn't even know that we were lower middle class. We just knew that we had to buy things at those big stores that sell the day-old things and if you go two days later you can even cheaper but then would you don't know as a kid is that you're super close to falling through and you're just one little hiccup away and my family had a number of hiccups health shocks job shocks marital shocks and as a consequence we fell through and then falling through looks completely different then. I thought so it becomes a shaming event as well. I know that your siblings went to live with your grandparents but you dropped out of high school and started working and you lived with a friend. Yes yes right exactly and I had a different series series of of people I connect with the first people I lived with where my substitute teacher in seventh grade and they let me stay in their attic and I worked worked and I sent money to my family and I helped myself. I paid them a little bit of money. Even though of course when you think of it it was absurd the money I gave them probably was meaningless but it was important to me. I did not have to feel like I was begging and not able to take care of myself and they they helped me build those little bits of confidence. I think that was essential looking back on it and really transformational daily had planned to become a bus driver. It was a union job with benefits but she had a mentor who suggested that she get her. Ged and go to college daily accepted the advice along with a loan of two hundred and sixteen dollars for tuition at the University of Missouri St Louis. She started off studying psychology but switched to economics. She became particularly interested in labor economics and public policy in in Nineteen ninety-four. She got her from Syracuse University but you get the sense that Mary Daly never forgets even for a minute the very long odds she beat to become president of the San Francisco..
"fed" Discussed on WSJ What's News
"If you don't see a big dent on the real economy than it allows the fed to continue with what will be a more gradual path of rate increases in two thousand nineteen you mentioned the markets falling and they actually fell the most during Powell's press conference. And so what that tells you is even though the fed did what most people expected it to do. They expected rate increase, and they and the fed delivered one they expected the fed would ease off of its twenty nineteen plans, and the fed did that the fed even signaled much less certainty about the path and twenty nineteen. So all of that was expected the fed is moving into more of a fine tuning or wait and see phase of policy but markets had begun to wonder if the fed might go even further and say, you know, what we're done raising interest rates, and so people who watch the fed closely didn't think that was. Very likely, but the markets had begun to price in no rate increases in two twenty nineteen. And so seeing a less aggressive path to rate increases instead of three wasn't enough because the markets had really begun to think that maybe Powell would indicate the fed has done raising interest rates, and maybe the next move could be up or down and Powell definitely did not say that and markets appear to have not liked that. And of course, the fed had been buffeted by criticism from the president even in the days leading up to the final meeting of the year and fed chair. Jerome Powell was asked about that on Wednesday. You know, political considerations have played no role whatsoever. In our discussions or decisions about monetary policy. We're always going to be focused on the mission that congress has given us we have the tools to carry it about we have the independence, which we think is essential to be able to do our jobs in a non-political way. And you know, we are we at the fed are absolutely committed. To that mission. And nothing will deter us from doing what we think is is the right thing to do. Nick, this is similar to comments Powell has made before what did you make of his statements on Wednesday on the lot of his answers Wednesday about the economy or the path policy? He was very uncertain. He was hedged. He he was clear that he doesn't really know. And so they're not going to be able to offer a lot of specifics. But when it came to the question of could your decisions be influenced by politics and by criticism from the from the president of the United States. He was firm. He was he was unequivocal, and he repeated himself he says this is played no role whatsoever. And never will. And so that he couldn't have been clear on that. And and I found that quite striking. That's Wall Street Journal reporter, Nick Tim rose joining us from Washington with the details on the Fed's last meeting of the year. Thank you so much Nick, thanks for having me. And that's what's news. I'm Ameri for totally in New York for the Wall Street Journal..
"fed" Discussed on WSJ What's News
"The Federal Reserve is signaling a more gradual pace of rate hikes in the new year with fed chair Jerome Powell saying to rate increases or likely in twenty nineteen the fed wrapped up its final meeting of twenty eighteen on Wednesday raising short-term interest rates a quarter percentage point to arrange between two and a quarter and two and a half percent. Joining us now from Washington with more details on what comes next is Wall Street Journal reporter, Nick Tim timorous, Nick, we knew heading into this meeting that the fed would likely raise rates for the fourth time this year, which they did. But what everyone really wanted to know is how the fed is viewing the year ahead. So how of the Fed's productions changed for the coming year regarding inflation, unemployment and other economic factors the feds economic forecasts didn't change a whole lot. They revised down a little bit there projection of growth for next year. And they revised down their projections of inflation by a tenth of a point. And that probably RIC. Flex a big drop we've seen in oil prices and the pullback in some foreign economies and the expectation that global growth might be a bit softer next year. The reason the US growth picture looks a little bit different is because of the some of the stress you've seen in financial markets that makes it more expensive for companies to borrow borrow or it could make businesses a little bit more reluctant on investment or hiring. And so that can slow growth, and as a result of that that the main change to the feds forecast was to revise down. Their path of projected interest rate increases in two thousand nineteen in September, the majority of officials thought they would need to raise rates both at the meeting on Wednesday and then three times in two thousand nineteen after the increase. Most officials now think the fed will only need to raise rates two times in twenty nineteen. So that was really the big change. And it was probably because of the tightening of financial conditions. You've seen. Over the past two months. So Powell did say likely to raise rates only two times next year as opposed to the four this year or even three he also pointed to those factors you mentioned slowing global growth recent market volatility, and we did see markets go down certainly on Wednesday after the fed concluded its meeting. He also pointed to those factors and said they could show some softening. But hadn't drastically changed the outlook yet what other clues did he give about next year? And what may factor into the feds plans woke they're going to look to see if this market turmoil? Actually, I is reflecting something that's happening in the economy is the market figuring out something about the growth outlook that we don't yet see in the data or in the forecasts. Or is this something of a more technical nature is you know, markets may have been running a little bit too hot earlier this year. And so are they coming back more online with fundament? That's really the question right now our markets telling us something, we don't know or is the data gonna take this in stride..
"fed" Discussed on WSJ What's News
"It is unusual. We've seen it many times. But it's especially unusual. I think that the president is tweeting about this just a couple of days or one day before fed officials will gather for their meeting. They have a two day meeting. It starts tomorrow. And then Wednesday they'll announce their decision as the journal is written. The fed says it's raising rates to return them to a more normal setting and avoid the type of boom and bust economy that ended in past recessions, I think the one thing that is tricky for fed officials. They've talked for a long time about wanting to raise interest rates gradually, and that's because they have sort of two separate risks. If they if they go too, slowly, there's a risk that inflation could pick up and that they could get what's commonly referred to as behind the curve that is that inflation gets out of control, and they won't be able to catch up to it by raising interest rates. The flip side of that is that of course, they raise rates too quickly, and that triggers a very fast slowdown in growth in it could trigger a recession. And so they've tried to maintain this very stable. Kind of steady path. But as the fed chairman Jerome Powell has started talking about in recent weeks that path is becoming less certain because of trade tensions because of a housing slowdown and because of concerns about global growth, and so he's talked a lot more about being more data dependent, and perhaps even adopting this wait and see approach they've been raising rates once a core about once a quarter, and we could start to see that change next year. I think the the word used right around that time was flexibility in how the fed sets interest rates. But apparently that was not enough to appease, Mr. Trump. You know, he has spent months criticizing the fed. This was hardly his his first blast. Right. I think the president is concerned about this market volatility perhaps and concern about the risk that the fed continuing to raise rates could could could actually slow down growth. Now. Fed officials have said that their policies as actually still somewhat accommodative that is their policy is not slowing. Down the economy yet that's not where they are. But obviously, there's big important implications for the president here. You know, we're past the midterms and now in the way that campaigns work now, we're almost heading into the next election cycle. And so he has to be thinking about what is going to be happening with the economy when he's out there running for re election would be remiss if I didn't ask this question fed chairman Pell is going to hold a press conference at the conclusion of the meeting on Wednesday. Do you think it's likely that he will be asked about Mr. Trump's tweet, and that he'll feel compelled to respond. I think he absolutely will be asked about it. And I think he absolutely will not respond directly to it. I'm sure he'll say something we've heard him get asked this, you know, similar question many times as as we've seen and heard the president talking about about the fed chairman. And he basically says, you know, we we make our decisions based on what's best for the economy, not based on political considerations. You know, he won't. He probably definitely will not meant. In the president directly. But I think he'll try to address this. It is the elephant in the room. Everyone is wondering to what extent the president's comments are weighing on the fed. So he'll have to address it somehow. But I think that he'll be extremely careful about how he does. So joining us from Washington, Wall Street Journal reporter, Kate Davidson, thanks Kate. Thank you, Charlie. And that's what's news. I'm Charlie Turner in New York for the Wall Street Journal..