26 Burst results for "Paul Volcker"
Fed adopts new inflation strategy, widely seen as leading to easier policy
"We would be remiss if we did not mention a big speech coming tomorrow from Fed Chair J. Paul the Title Monetary Policy Framework Review. Is I think we can all agree Adad Dry. What it's going to mean in real life though says economists Tim Dewey at the University of Oregon. In dry at all, my expectation is the Fed's going to basically loosen up how they've been thinking about their a two percent inflation target. Specifically, the Fed will actually try to overshoot the two percent target a little bit to make up for periods of undershooting the two percent target, and that's a big deal because central bankers today are still really really leery of inflation flashing back as they do to the nineteen seventies and Paul Volcker and a prime rate of twenty one and a half percent. But. What is this speech going to mean for you and me where you're gonNA notice a difference as maybe over the longer run like in this recovery, the federal probably won't raise interest rates as early as it did in the previous recovery. So maybe as a result of that, the recovery is a little bit faster and that would mean Jonah that rumour quickly that wages that grew more quickly and then maybe inflation was a little bit higher. And as often happens with the Fed Powell merely talking about higher inflation could just nudge the economy all by itself even the expectation that policy will be easier for longer could actually induce some of us to take economic activity now because it improves your confidence about the future. Tim Dewey at the university, of Oregon, there with the set of J. Pals big speech tomorrow on inflation. It's all virtual. By the way the Fed conference tomorrow, you can watch pal speech sued use. Should you so choose go to the Kansas City Fed's youtube site YouTube dot com slash Kansas City Fed.
What You Need to Know About the Coronavirus
"News covered nineteen what you need to know about coronavirus I'm Lucas Univar now we're going to look at the ways authorities around the world are responding to this pandemic the trump administration's handling of the crisis has been heavily criticized the president has given confusing advice contradicting his own experts and misleading the public about timelines for testing and vaccinations morning edition's Rachel Martin spoke to three of NPR's international correspondents about how other countries are handling the coronavirus Sylvia Julie is in Rome Anthony kun is in Seoul and and Lee Fang is in Beijing Emily I'm gonna start with you because you were covering the crisis in Wuhan from the beginning can you just give us a sense now about what was the trajectory of the Chinese response to this well for the first month after that initial cases of the current affairs sure there wasn't a response there is local cover up in a delay and during that time of about five million people left the virus epicenter in like the spread it to the rest of China but then the country mobilized it did so very quickly imposed very stringent self isolation and quarantine measures and by self isolation I mean people sort of waiting densely populated areas they canceled all public events they shut down factories and offices and by quarantine measures and that the they still sealed off cities and villages completely Anthony how does what and we just say said compared to what's been happening in in South Korea while South Korea got hit right after China and because of south Korea's experience with previous epidemics they decided that rapid mass testing for the virus was going to be the key to their strategy and so they've been testing around fifteen thousand people a day S. three thousand six hundred people per million of population compared to five people per million in the US results also focus on transparency putting out daily statistics and press briefings Sylvia in Italy I mean now Italy is has replaced South Korea as the number two in the world after China when it comes to the the scope of of this pandemic what has been the Italian response drastic curbs on freedom of movement and there's been overwhelming compliance only food shops pharmacies and you stands are open people can go out but if stopped by police they must show kind of affidavit that states the purpose either work grocery shopping health or emergency police are carrying out random checks they face either three months in jail or a fine of two hundred thirty dollars the purposes social distancing keep people apart Italy's following China's lead the Wuhan model so Emily the Wuhan model hasn't worked I mean transmission has decreased there has not yeah and experts pretty much unanimously agreed that's because of social distancing it will destroy your economy as it temporarily has in China but it quickly slows the virus's spread another thing China did was it built these makeshift centers where they sent six people and sending instead of sending them home and researchers in both the US and China have now said this week that that was critical to slowing down the outbreak but this could be a measure that western democracies may be unwilling to take as for quarantine measures though sealing off the ledges and cities that's the jury's still out on the efficacy of of that because quarantines meet harder for medical medical resources to reach heart the hardest hit areas and that's probably why fatality rates in the epicenter in China are nearly four times higher than the rest of the country so Sylvia how have the measures worked in Italy what's the situation right now is there any slowing well nationwide it's too early to say it hasn't hit the peak yet the quarantine that was put in place a few weeks ago in the contagion epicenter in Lombardy eleven pounds fifty thousand people local authorities say it's working the contagion rate has dropped and that's why the quarantine was extended to all of Italy to try to prevent a spread to the south which has much weaker health systems than those of the north which were among the best in Europe but they are severely strained by this crisis now I'm Anthony South Korea chose not to take measures like we've seen in Italy or in China with these dramatic quarantines are lockdowns and yet it seems like the have still been able to to keep the crisis at bay right yeah well okay so numbers have been declining for two weeks in a row and sexualities of been at less than one percent compared to about four percent for China and six percent for Italy and you know doing this without having to log huge regions down is also a kind of effectiveness kind of accuracy was or something specifically about South Korea that made it possible for them to avoid large scale large scale quarantines well it's you know testing capacity is not just about cats it's about investment in basic healthcare infrastructure lab technicians chemicals machines logistics and if any one of those areas has a bottleneck it's going to mess things up and people are going to lose lives and it's just you know at the end of the day it's investment in in a healthcare system hospital beds you know national health insurance and this shows up in survivability for all diseases including covert nineteen and lastly Emily and Sylvia I'd love for you to talk some about how the different political systems in China and Italy have affected the coronavirus responsibly you alluded to this earlier but really how much of China's success in mitigating the spread has to do with the fact that this is this is a country frankly with a long history of human rights abuses it is an authoritarian state we've seen transparency is critical for a fast response that wasn't present in China but because China is a very centralized government one might say authoritarian it was able to mobilize quarantine measures and self social distancing very very quickly the problem is quarantines may have cost more lives than we know but we'll never know the secondary costs of people who are not able to get timely medical care and suffered from it because they were sealed into their villages or cities right and still be obviously Italy is a democracy what is been just the people's response to these kinds of drastic measures the crisis has totally turned the world upside down Italians notorious for cutting into line not very beaten to rules are become the most compliant people I've ever seen in my life and French correspondents based here sent a petition to French president Emmanuel MacColl telling him France underestimates the gravity of the epidemic and failed to prepare French public opinion they say look at Italy it's our duty to tell you there's no time to lose NPR's Sylvia patrolling Anthony kun and Emily Feng talking with rich mark fears about the impact of coronavirus have sparked a financial crisis in the markets Austin Goolsby who chaired president Barack Obama's council of economic advisers says that as the virus spreads American markets might be hit even harder than China's and here's our Shapiro asked him why if you look at the economy of the United States or of the rich countries in Europe they're much more dominated by these face to face services that are exactly the things they get pulled down whether their leisure and entertainment and sports or going to the gym or all sorts of services so if everyone stops doing that that's a bigger hit on the U. S. economy even that it was in China we went when they shut down he also said that virus economics are different from regular economics explain what you mean by that yeah by that I mean the closest thing in our in our collective memories to this moment was a financial crisis right into my house I natural crisis economics and business cycle economics is a little different than the virus in that the main thing that is paralyzing the economy is this year and withdrawal and so in a way the best thing you can do for the economy has nothing to do with the economy with virus economics and that is things like paid leave for people that are sick is actually not stimulus it's paying people not to come to work but anything that slows the rate of spread of the virus is the best kind of stimulus so if we have to get on top of this as a public health matter I think before you can effectively deal with this as an economic except if we do so the rate of the virus in this epidemic continues for weeks or months is there anyway to turn around the financial slide yes and no no in that look if there's going to be a substantial slowdown our goal is and should be allowing us the opportunity to bounce back it as this thing passes over us and that means you can't let everybody go bankrupt or starve or have these persistent lasting problems from what we hope to be a temporary shock and so do you see the crunch that we're experiencing now as an irrational panic or an appropriate response to the cancellation of big economic engines like pro sports like Broadway lever like school like the economic activity that goes on in major cities every day yeah a bit of both as we in fear the withdrawal and have social distancing to try to slow the virus there is going to be a substantial slowdown of economic activity right but I can never get out of my head from the two thousand eight crisis Paul Volcker's words over and over at that time that during a crisis the only asset you have is your credibility and as the U. S. government has not made credible statements that contributes to fear that makes it go down and we've we've got to do better we need the president to
"paul volcker" Discussed on FT News
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Remembering Paul Volcker
"Here's the thing about Paul Volcker the former chairman of the Federal Reserve arguably one of the most influential of Fed shares. Who died it yesterday at the age of ninety two? Yeah it's kind of an amazing story that's author and New York Times editorial board member beaming Applebaum on this show about a month or two ago. He used to cover the Fed for the Times. When Paul Volcker I started at the Federal Reserve he worked basically as a human calculator in an office deep inside the Federal Reserve? There Have Bank of New York in the early nineteen fifties and he told his wife one night that he didn't think he had a future at the Fed that as an economist he was always going to be consigned to being essentially. Actually you know A worker bee at this institution that was run by financial market types businessmen. Those even a Iowa Hog farmer there and he didn't think that he had much chance of getting ahead. Suffice it to say Paul Volcker got way ahead at the Federal Reserve. Jimmy Carter picked him to run the Central Bank in nineteen seventy nine with inflation and this is important headed toward almost fifteen percent. I ask Carter about that about the economic and political fallout from picking Volker when I interviewed the former president in two thousand ten so I went looking as I Picked up this book. I went looking for the name. Paul Volcker who You pointed to the Fed in nineteen seventy nine. You don't come across crosses name until page three hundred and forty something and it's really funny because it is dismissed in a sentence. Paul Volcker came in We decided we could work with him. And then the the next day bang you name to defend that was really the one of the most hotly debated things. I did because a lot of my political advisor. Said don't appoint Paul Volcker because he's going to tighten up on everything and you will have no control at all over the Fed anymore. You won't even have communication with him when Paul Volcker came. I was seeing the prospect of enormous inflation rates. And so I agreed with Paul Volcker in conversation that I would not interfere in what he did. I was prepared for him. To tighten up tremendously and drive interest rates and so forth up in order to control rampant in. It's funny actually because a little bit later in the book you basically say in this passage that you dictated at the time Volcker says he's going to have to tighten interest rates. And it's GonNa hurt me politically. I mean. You knew it was coming. I knew it was coming but I was prepared to take it. I thought that I could be reelected in spite of that as it turns out. Of course things didn't work out for President Carter about which I asked Paul Volcker in two thousand twelve if I read the see the recounting of that job interview correctly in this book. You basically said I want independence and I gotta do what I gotTa do. It was obvious why he wanted to see me. But I MR president and if you're thinking of appointing me Germany Federal Reserve. You have to know that I believe in somewhat entitled Monetary Policy and we have been following and my predecessor followed. Yeah you know I the next question I asked the president actually was Did you mind when he raised interest. He's like that and he said Oh no I I thought it was going to be good for the next presidential term. I thought that term was going to be mine. Not Raking No. He asked him why said I cost him the election. There's some people said and he had kind of Ri- smiled and he said well I think there were a few other factors as well after he left the Fed in nineteen eighty seven. Paul Volcker worked on on Wall Street for a while. Got Drafted back into government service every now and then most. Recently as the chairman of President Obama's economic recovery advisory board and as the namesake for the Volcker Carulli. The part of the Dodd Frank Financial Reform Bill that limited some of the kinds of trades. The Big Wall Street banks could make. But really when you think Paul Volcker. It's those years in the late nineteen seventies early nineteen eighties when the Fed pushed short-term interest rates up to a record twenty percent to get inflation back under control twenty percent went today the Fed's current short-term target rate is between one and a half percent and one and three quarters percent and it hasn't over five in more than a decade which makes double digit interest rates hard for most Americans below a certain age to even fathom so marketplace's Amy Scott takes us back in the early nineteen eighties and Owen managed a bank branch Boston to remember telling customers. They'd have to pay twenty one percent interest for a car loan today. The average is just over for four percent. They would get mad at the bank and many times they would just basically say I can't afford that. Oh and went on to become an economist at the Fed and now teaches at Hamilton College. She says those high interest rates had a purpose volcker was trying to slow down demand by making borrowing more expensive give. It made it difficult for people to buy houses by cars Credit card interest rates. Were extremely high. The economy did slowdown slowdown falling into two recessions. In one thousand nine hundred eighty two unemployment topped ten percent in protest homebuilders mailed. Chunks of two by fours is to Volker and members of Congress. Fred Napolitano is former president of the National Association of homebuilders. Just make a point to say this is what we do is is what we build you know with. The interest rate is hurting us. That pain eventually paid off. Robert King is a professor of economics at Boston University. Ultimately once people began to believe that inflation was gonNA come down it came down and interest rates tumbled and the economy recovered and and it's viewed as a major triumph at triumph. Nobody wants to have to repeat. I'm Amy Scott for marketplace. Paul Volcker did yesterday at at the age of ninety
Former Fed Chief Paul Volcker, inflation slayer, dies at 92
"He was known as the fed chair who tamed inflation now Paul Volcker has died at his home in New York here's ABC Jim Ryan Paul Volcker served as chairman of the federal reserve under presidents Carter and Reagan but decades later head of president Obama's economic recovery advisory board to combat inflation folders that raise the federal funds rate and tighten the money supply and while it did cut inflation can also created the conditions for a recession he founded the Volcker alliance a nonpartisan nonprofit organization when he was eighty six to promote public service he died yesterday at ninety
Netflix, Golden Globes, Large Caps vs. Index Funds
"We're GONNA look at large cap. Stocks Relative to index funds. We're going to pour one out for Paul Volcker but we're going to start with the entertainment industry the Golden Globe. Nominations came out this morning for film and television the most nominations in film I went to Netflix with seventeen. Nominations followed by Sony and Disney with second and third respectively. Most nominations in television netflix with seventeen. HBO Second Hula Third. And I will just add parenthetically broadcast television completely. Shut out of the nominations for television. Where do you WanNa go with this because I we were talking a little bit this morning about this? Obviously this is A nice feather in the capital Net flicks and I think part of the reason is not just because it's nice to get this kind of recognition but also because is for anyone who's wondering about the money they're spending on content. Ted Surround US can point to this and say no. I feel like from a quality standpoint. We're doing pretty pretty well. Yeah I mean I I. I don't. I'm not surprised by this. I mean it really feels like this is just Reiterates what we've been watching. Play out over the last several years. Just just we're seeing the old legacy providers really take a hit on the content inside and I think a lot of that has to do with just the fact they've been hamstrung by Hold School advertising models and limitations on the type of content that they can produce and we saw netflix trump in their early on the power of the disruption That the Internet is provided in a lot of other companies have started to follow suit I I don't really. I'm not one that really focuses or cares much about what award awards shows say or what critics say when it comes to content But with that said I mean these types of awards just even these types of nominations regardless of whether they win or not these types of nominations certainly helped get this type of stuff on viewers radars. And I think that is probably one of the biggest benefits of all is that it is more more or less free publicity. I mean I say free. Obviously they're paying a lot of money to produce this stuff but it is. It is publicity that helps get a lot of this stuff on viewers radars as we enter after this phase of just more content than we ever have time to watch. It's nice to know what is what is Bubbling to the surface there as as the must see TV and in films and whatnot. And I think you know honestly it feels like we've talked about this golden age for for television television. It really feels like films have had a tough go of it in and I think part of the proof there is just. This constant need to reboot everything in in. These reboots are just so uncompetitive from so many different angles It's nice to see your net flexes and Disney's Hbo's taken these Creative Moon. MM shots so to speak and seeing some of them pay off absolutely and I think you're you're completely right particularly when it comes to the fact that you know we know that smaller networks whether it's FX AMC. Some of these other niche. But I guess from just from a content creation standpoint in a way they are niche because they're not producing a lot of original stuff but part of their pitch to show runners. Is We can give you a lot more oxygen in terms of promotion. Because the fact of the matter there is net flicks. They're going to promote their bigger hits and bigger budget items more but just the sheer number of original things. It's the Netflix is producing in a calendar. Year is in the hundreds and so as they continue to invest in things like stand up comedy. There's only so much promotion motion. They're going to give a new comedy special. No matter WHO's doing it they're going to say. Yeah Jason. Yeah you've got a new hour stand up special. That's we're GONNA give you about three days worth of promotion. It'll be on social social media and maybe a billboard a two and that's going to be it yeah and so it is this This really does afford them as you said this bonus opportunity to promote. Oh yeah the Irishman Yeah. It's a long film but apparently it's a great film Because it's getting all these award nomination I'm so torn on the Irish. I want to watch it so I know I'm not. I'm not going to have the patience to finish it and it's like you know it's going to be just an amalgamation of a lot of movies we've already seen with these guys he is and you're going to kind of know how it ends anyway. So do I need to bother really and then you get Scorsese at. They're just begging you not to watch it on your phone but it's four hours man. Yeah there's GonNa be some time spent watching this thing on my phone netflix is a very interesting situation right now. Because is it has such a headstart on all of these other streaming services that are coming to market in HBO included. I mean when you look at some of these numbers regarding Gordon content spend it's actually astounding thing I mean. NETFLIX IS GONNA spend fifteen billion dollars on content this year. You compare that with something like Disney Disney plus right. They're going to spend about a billion here in this first year. Now that'll continue to go up. His time goes on They're just getting started. But then you look at something like comcast peacock which is going to be the end. NBC Service. They're talking about spending two billion dollars of the first two years to grow that service and really always always recognized that service for more than anything is probably just the fact that it's going to have the office wants. The office leaves Netflix. Six But my point is is that a lot of these other services. Don't spend nearly as much on content that can be an advantage or a disadvantage depending on what your perspective is. I mean Netflix. Netflix is trying to build a service. That scratches niche for everybody and so they have this wide cross section of content that they're building at a cost a lot of money to do that. And if that's GONNA be their strategy they're are GONNA need to keep on doing that. That requires a lot of capital. And they're going to figure out ways to raise it. HBO Peacock Amazon Disney plus to a lesser extent. I mean they are focused a little bit more specific world and what they know where the content spend might not be as heavy but their catalogue is going to be more limited and that's that's by design So then it is just a matter of how these all come together in and how we as consumers are are going to pick and choose which services we ultimately want price. It's GonNa take take part of it but I mean people are GonNa pay up for what they want to see in in so you know again. I feel like Netflix. Having such a great head start. It's terrific from the consumer side but now from the investor side. You have to start asking yourself. How much more can they raise prices versus something like a Disney plus where it looks like? They have a lot of room to raise prices but they're also just getting started. You mentioned the number of sequels that we've seen I sort of the the reboots that we've seen and I agree with you from a creative standpoint. It's hard to get excited about that from a business standpoint when you look at the box office numbers for this year here and the fact that right now. The Lion King remake is number two at the box office and for anyone questioning Disney's he's movie strategy you. Can you can stop because Disney is on pace to do about ten billion dollars at the box office. Is this year. The biggest year they had was twenty sixteen. Just over seven and a half billion and I'm not even including the Fox properties include those that gets you closer to twelve billion but it's it's really phenomenal. What they've built in and good luck to whoever gets to succeed Bob Barker? Yeah Yeah. I mean they've got their work cut out for them but I tell it is amazing that even when Disney puts out something that you might not initially think you care all that much about then at some point or another you end up seeing it for one reason or another and you discover wow man. I really enjoyed that and I mean the most recent example for me was over Thanksgiving break lake. Were down at the river for the holiday and we keep that house. disconnected from the
Former Federal Reserve Chairman Paul Volcker has died
"As fed chair in the early eighties Fokker elevated interest rates to historic highs causing a recession and was vilified by the public he later served as an economic adviser to president Obama and in two thousand nine during the Great Recession talked about the ongoing financial crisis the big economic problems behind the financial system so they're gonna take longer to work out Volcker pressed for restrictions on banks ability to trade in financial markets into invest in private equity and hedge funds those regulations became known as the Volcker rule I'm I camp in
Former Fed Chief Paul Volcker, inflation tamer, dies at 92
"Paul Volcker former fed chairman who broke the back of inflation during the eighties has died at age ninety two three decades later he led president Obama's bid to rein in the investment risk taking of commercial banks known as the Volcker rule moments ago we spoke about that rule with John at writing of already Q. economics the end of it on the page regulation so I think it was implemented in the way the necessarily wanted it to be implemented in the US we don't follow the spirit of the low we follow the letter of the law and the letter of the law tends to be very
Binyamin Appelbaum On 'The Economists' Hour'
"Picture this in the early nineteen fifties. A young guy is working at a desk deep inside the federal reserve bank of new york. It's not exactly a corner office and he complains lanes to his wife that he has no future there at the fed. He's not a banker. He's not a lawyer. He is a lowly economist. That is what life is like for economists in the nineteen fifties. Nobody respects them in part. Just because <hes> economics was a new thing in the world the idea that people could manage economic conditions could improve economic conditions. These were new ideas in the world. I mean it's just stunning to think about that era. It was so different that is being you mean applebaum. He writes about economics for the new york doc times and he's written a new book called the economists our that traces what he calls a revolution in the way we think about economists this quiet but really important revolution solution that happens really beginning in the late nineteen sixties and the early nineteen seventies where economists begin to gain a tremendous influence over public policy in the united had states in fact that young economist told his wife he had no future at the fed that was paul volcker. He became one of a small group of economists who made themselves indispensable dispensable to u._s. Presidents voca rose to become the chairman of the federal reserve in the carter and reagan years so i asked applebaum had it a bunch of economists go from nobody's to being important people and he said it's pretty simple in an era of real economic problems. They promised solutions by the early nineteen seventies indies. It's really becoming clear that something is wrong. With the american economy people worry about their own future their children's future and economists enormously successful successful in asserting that they can fix the problem and their answer is basically that government needs to reduce its role in the economy <hes> that bureaucrats need to take their hands ends off the economy and allow markets to allocate resources government needs to trust in markets and this idea came from many economists but there was one economists in particular in your book you write about him a lot and that's milton friedman. Milton friedman have is very very simple idea that proved to be enormously sleep popular and along the way milton friedman became kind of a household name. He's a remarkable person he is this elfin libertarian who commands any room that he's in even though he's often the smallest person in the room and he's enormously successful essentially in in proselytizing this idea that that the solution to almost every public policy problem is for government to get out of the way and it has enormous appeal. I think in part because of its modesty. He's not saying milton. Friedman should be in charge of the economy. He's saying neither i nor anyone else should be in charge and for a generation that is confronting the failure of the economy. This has enormous appeal so at the heart of your thesis is not necessarily that milton friedman was correct you talk about these really negative unintended consequences that come from this idea that the market is always ace right in two thousand nineteen when we look back at the legacy of milton friedman and others like him with their faith in the markets. Where does that leave us now economist. It's really emphasized that there was a trade off between efficiency meaning getting the economy to grow as quickly as possible and equality meaning that everybody shared in the rewards awards prosperity and they argue that government needed to focus on efficiency that the goal of public policy should be to make the economy grow as fast as possible get as big as as possible but by ignoring inequality by deciding basically that government should stop trying to equalize the distribution of prosperity or the opportunities to to prosper <hes> it really contributed significantly to the rise of massive inequality in our society. You've been writing about economics for years and i wonder when you were researching shing this book. Were there any moments where you said oh. That's not what i thought it was. I'll tell you what i did not appreciate. When i started this process i did not understand the extent to which economists mist in the seventies were responding to real problems to a real breakdown <hes> in our system of governance and economic policy the extent to which these free market ideas really gained prominence and and popularity because of a broad perception that what we were doing had failed that is the thing that makes me want to spring to the defense of economists. I mean i was unaware unaware or only aware very vague sense that in the seventies this country hit inflation at like eleven percent twelve percent which is unthinkable now right. We haven't seen we haven't seen inflation like that in years. Our money has been stable in this country. There's so many other countries that don't have that luxury it makes me i think we don't these guys deserve a lot of credit for the fact that my dollar is going to be worth in a year about a dollar as opposed to seventy cents. I think they do deserve a lot of credit. I think it's a classic example of a revolution that went too far. The gains are real. The benefits real economists brought a lot of discipline to policy making ah in a lot of ways to improve the quality of public policy but by sort of embracing that idea to the exclusion of any other priorities by saying we're just gonna focus on efficiency by advocating for economists to take the wheel and excluding other points of view. We ended up in a really problematic place.
"paul volcker" Discussed on Bloomberg Radio New York
"Shanghai along with Tokyo and most of the rest of the region looking like a pretty solid day. Here we've got a lot of strength in the Chinese currency the offshore and six seventy six fifty two here at the moment. The Hang Seng index is open flat and the China markets are moving up so lots to digest you with the markets. We'll get to that with Doug in just a moment. But for now, Kathleen, and I will take a look at the top stories. I wonder if those Chinese markets are taking a look at this top story. Brian President Trump says he might let March deadline for more tariffs on China slide. Pay twenty-five percent fifty billion dollars ten percents on two hundred billion dollars. So we have two hundred and fifty billion we have two hundred sixty seven billion dollars that we were very nice about. And we're not taxing on the two hundred billion with the ten percent to ten percent for two hundred. Goes up to twenty five percent on March first. And so far, I've said don't do that. Of course, it's US consumers who are paying the tariffs. In terms of price is not China as the president suggested. Unless of course, they're experts states suffer as a result. Meantime, US and Chinese negotiators are meeting in Beijing again today to prep for higher level meetings later this week. And in terms of who's the adult in the room. Former fed chairman Paul Volcker weighed in on the US China trade fight saying he's worried about the rhetoric and the threats coming out of the White House. Sometimes sounds terrible. But respond more favorably to what the president of China and the president of the United States. As Paul Volcker commenting in video with Bridgewater associates Ray Dallaglio on YouTube. Mr. pro of always speaks his mind. But let's move onto shares of activision blizzard up about three percent right now in late trading. The gamemaker announcing plans to eliminate eight percent of workers that says the video game maker attempts to get call of duty back on track after a disappointing. Forecasted also announced plans for a city based call of duty east sports league. All right. Let's take a look at Nissan here. The shares at the moment are trading up just a scant amount. Just a little under a tenth of one percent. The Japanese automaker made an unusual move. It's taking an eighty three million dollar charge against payments due to its former chairman Carlos gone gone is still under investigation and is in prison. Nissan, also cutting its operating forecast to the lowest in some six years weakness in the US auto industry as well. And just briefly the fed says that more Americans than ever are at least three months behind on their auto loans, and as a percentage of total debt, the delinquency rate is the highest since two thousand twelve well taking a look at the big stock winners in China's technology hub of Shenzhen. They're not official intelligence companies. They're farmers. Bloomberg's Rishaad Salamat has more chicken breed as Shandong Chen, tan and Shandong her animal husbandry of risen about. Forty percent. This year the pig farmer meal. U N food stuff is up. Thirty four percent. Let's say pork prices will push Haji to the outbreak of African swine fever feedstock is more expensive due to the US China. Trade dispute ended that could be a negative, but a deal might see most soya beans imported from America lowering breeders costs. In addition, the government has promised to support listings and fundraising by agricultural companies. But there's always a cost recent gains have made the ags sub-index in Shenzhen trade at forty nine times reported earnings, and that's more than double the broader market in Hong Kong number shots. Bloomberg daybreak Asia. All right. Let's take a closer look at the overall stock market the S and P five hundred crawled above its two hundred eight moving average with the biggest gain that we've seen this month. So far up thirty four points that was a gain of one point three percent. And how is it affecting Asia? Let's get to Doug Christner, Doug. Well, generally speaking if you back up and look at why we had the risk on tone. I mean, there are two things here that not the least of which is optimism that we're going to get some kind of framework at least sketched out before the end of the week on U S, China trade that seems to be what the market is indicating. Secondly, there's this idea that we've reached a principal or agreement in principle and may have dodged a bullet when it comes to the potential for a second US government shutdown. So you're right, Brian. We did have a rally in the US equity space, the S and P five hundred as you pointed out just above that two hundred day moving average the dollar comes in just a little bit. If you look at the Bloomberg dollar spot index we were down about three tenths of one percent. So we snapped at eight sessions of dollar strength right now. The yen weaker here at one ten fifty four. We had machine tool orders for Japan. This is last month's number a drop of eighteen point eight percent. That's year-over-year reading South Korea's adjusted jobless rate now the highest level since January twenty ten so let's take a snapshot of where we are in the equity side, the kospi insole is up four tenths of one percent. Weaker yen helping out the things in the Tokyo market along with optimism on U S, China trade Nikkei is up one point three percent. Hang sang better by three tenths of one percents. Shanghai composite up two tenths of one percents. And in Sydney, the ASX two hundred down about one tenth of one percent. That's it here, Catherine. Well, doug. Thanks so much. Let's get right onto some more. Global news US President Donald Trump being urged by both political parties.
Paul Volcker calls out Trump on trade and taxes
"Former fed chairman Paul Volcker weighed in on the US China trade fight saying he's worried about the rhetoric and the threats coming out of the White House. Sometimes sounds terrible. But respond more favorably to what the president of China and the president of the United States. As Paul Volcker commenting in video with Bridgewater associates Ray Dallaglio on
"paul volcker" Discussed on Bloomberg Radio New York
"Kelly. Plenty ahead for you. In this next hour of the weekend edition of Bloomberg business week couple of presidential advisers in a sense, Carol won the former chairman of the Federal Reserve, he served six presidents. That's Paul Volcker. He's got a new book out, and then there's Tom barrack. Yes. Another presidential adviser. Of course, this time to Donald Trump. These guys have been linked for decades they worked in the real estate market together. But it's interesting Tom barrack was out there front and center do a lot of media on behalf of Donald Trump and candidate Donald Trump. But everybody's wondering is he really a Trump insider, plus welcome to the age of the virtual restaurant. That's our pursuit section. But I. Jason I we've got a tight labor market and companies really can't afford to fire workers in this type of environment. So what they're doing? They're going back to training them. They are indeed. And whenever there's a story like this. We always want to get the Peter Klay take and as usual, he's got a novel thought, here's Peter companies constantly complain that can't find the people they need their problems gotten much worse lately. Because the unemployment rate is only three percent there over seven million unfilled jobs the US as of the last count. And so what accompanies do they can try to poke from other employers, and they do by the way, but that gets expensive to raise wages, so more and more of their coming out of the idea. Maybe we just had to retrain the people already have. And of course, the idea of training. Your employees is something that companies are done for centuries really apprenticeship and so on journeyman, but. It could've fell into it was under decline, according to bureau labor statistics data for a long time. Most recent figures in two thousand eight showed a fairly steep decline. One reason for that as a companies were afraid they put all this money and time into people and train them up. And then they would just be plucked by somebody else. So I'm looking at well what's happening today? The evidence is that there has been uptick in training, not huge. But it's on uptrend. How come is it some of that to do just because it's such a tight labor market is? I mean, I think it's that you know as unhappy as they are. But the possibility of somebody free riding on them in poaching there people they feel they really just have no alternative but to provide their own training. I mean, it's expensive to lose a worker, right? And the of rehiring retraining, so. Invest in Schreyer existing workforce. Open up your mind to the possibility that somebody who's not a specialist in something can learn this. You somehow sometimes the force of circumstance such an extremely low unemployment rate makes you put out of your comfort zone into new ways, which be respectful, and I'm glad you brought that point up because I feel like retraining workers is one of these candidly like political platitudes. You know that you hear anyone who's running for office. They're solution right to the local economy or the state the national economy is we have to retrain workers because new economy, but it feels like the rubber is meeting the road now and people are actually starting to to do this. What does it look like on the ground for from what you can tell what are companies doing that is actually working when they put these plans in place. Well, a big theme is experiential learning people. A lot of people aren't really good at classroom kind of education. And they learn better when actually do stuff which I need an apprenticeship. Right. And but it's not just entry level work. It's it's on up rotations, Bloomberg has that, you know, you rotate through various jobs and gain a wide variety of skills, and it can also be. Harnessing, computer, computer, assisted learning. So there's a little bit of there is sometimes a bit of classroom aspect, but it can be done in a computer assisted method. I feel like there's been this conversation going on speaking with heads of universities about kids graduating. Do they have the right skills for the workforce, and whose responsibility is it should -cational institutions be prepping, providing the right skills, or is it up to the employer to say. Okay. Here's kind of what we need training. There's constantly a clash over that the companies complain that it's true, by the way that the employees are coming to them unprepared. Right. According to a survey by the OECD organization for economic cooperation development of twenty two countries. The millennials in the US were fifteenth of twenty second and literacy, they were tied for the bottom in numeracy, and in preparation for technology rich environments problem solving and so. So what is happening at the federal level because President Trump's actually come out and right doors, this idea of apprenticeship sin as you say that something that probably a lot of people feel a little bit old school antiquated. We've sort of lost touch with that that notion of training apprenticeships should quite expensive. So you you really got to bite the bullet and say, okay, we're going to put some money into this person. Why are they so expensive? Well, think about it. You have not only are you paying this person before he or she becomes productive. But you're bringing in a lot of resources including other people who are drawn away from their day's work to help. So Trump's a big backer that the problem some people in the workforce development, you see is at the same time. He proposed this project is cutting or propose to cut I should say, the main workforce development program in the government. So people are like uncertain really, whereas the administration going with this. But if you think about it bottom line, right? We have job openings you. We have people out of work millions of people still out of work. There's this gap. So we need to figure it out because the only way you're going to increase productivity or economic growth. Right. She put more people to economists love worker training, you increase the productive capacity Konami, everybody's better. So if we can make it work. It's a great thing. Good stuff. Peter coy as always thank you. Thank you. You're listening to Bloomberg BusinessWeek coming out. Former fed chief Paul Volker knows about president's trying to pressure the fed. In fact, we've got his own story during the Reagan administration. It's.
"paul volcker" Discussed on Bloomberg Radio New York
"I look at today's trading session. Once again here is Charlie Pellett is thank you very much. Carol massar. Thank you. Jason. Here's what's going on. The Dow the s&p NASDAQ all in retreat on this Wednesday. The selloff in semiconductor and FANG names that has rallied US equity markets, put NASDAQ on course, for a so-called correction right now, NASDAQ is down two point three percent lower by a hundred and seventy points. Now trading close to the lowest since may the latest leg down puts the plunge from its August record of eighty one nine past the ten percent drop that is the commonly accepted definition of a correction. So again, NASDAQ slumping a hundred and sixty eight points down two point three percent s&p down thirty four down one point three percent. The Dow down one hundred and seventy one down seven tenths the tenure up eleven thirty seconds yield three point one two percent gold. Little changed up ten cents the ons right now. West Texas intermediate crude up six tenths of one percent, sixty seven sixty six eighty three right now on WTI recapping stocks lower SNP down thirty three a dropped their of one point two percent. I'm Charlie pelletan. That. This is a Bloomberg business flash. Thank you so much Charlie Pellett. You're listening to Bloomberg BusinessWeek. I'm Jason Kelly alongside Carol Massar here on a Wednesday afternoon in New York City, New York City, candidly a little bit on edge, given some of the activity around some suspicious packages over the last twenty four hours both in the northern suburbs. Affecting George sources home up in Westchester county, as well as the home of former President Bill Clinton and former secretary of state Hillary Clinton as well as the CNN newsroom here in midtown Manhattan. Yeah. And it's interesting to to hear certainly the president come out and say bipartisan support to get to the bottom of this. But if you think about those those suspicious packages, those explosive packages, essentially kind of partisan targeted out about it does feel that way. Indeed. And we just did hear comments from the president of the United States in the East Room of the White House at an event convene to talk about the opioid crisis can being with the first lady Melania Trump gave opening remarks. She herself actually addressing in the top of her remarks the suspicious packages the event has moved on to talk about the opioid crisis. Karen Pence, the wife of vice President Mike Pence also in attendance are as several members of the president's family, all of whom have been working on this. But clearly these packages top of mind for the president. He did talk about putting the full weight of the government. We had accomplished again, we had a conversation with Josh Greene who watches all things politics, I and has been closely looking at the midterm election June. I talked with him earlier for a weekend BusinessWeek program. And what's interesting is he talked about the element of fear and the power that that can can have to bring out voters, especially in a midterm election. And it'll be interesting to see how incidents like this are concerns over other things whether or not that brings out the voters, absolutely true. And Josh green is a true expert on a lot of the rhetoric that has been behind the political moment that we've been living in for the past couple of years. So among our most read stories on the Bloomberg today. Former fed chairman Paul Volcker weighing in on president's really trying to pressure the fed. There's so much going on. And certainly President Trump has been vocal once again critical of the fed again this week. Paul Volcker knows though about the difficult relationship sometimes between the president and the Federal Reserve. I it's all in his new auto-biography. It's called keeping at it. The quest for sound money and good government. It's been written with Bloomberg markets editor Christine Harper. She joins us in our Bloomberg. Interactive brokers student New York, so nice to have you here with us. Jason I got to talk to you a little bit about the book this week. First of all tell us about the process and sitting down and doing this with Paul Volcker. Well, he's one of the most amazing public servants that this country has had over the last century. He's ninety one. He's a sharp is attack. He has served under six presidents in the treasury department as Federal Reserve chairman and most recently with the Barack Obama as head of the president's economic recovery advisory board he's worked for Democrats and Republicans. He's very clear eyed he has is best known for stopping the double digit inflation of the nineteen seventies and eighties. But he also had a friend. To the end of Bretton Woods in the nine hundred seventy one when Richard Nixon took the country off the gold standard. Nobody really understands monetary policy and global economics as well as Paul Volcker, and he's an amazing man to work with and what are the amazing things about these excerpts from the book Christine are first of all the scope of history that that is embedded in them. And it really takes us both you and Paul in this really take us inside the room and inside this is Carol looted to this rather tortured relationship that the president has always had with the Federal Reserve. And it's interesting, I think especially I mean, so timely, obviously. But an interesting reminder that maybe there's nothing new under the sun, tell us about these encounters that well, there's so much in the book the book is called keeping at it. It comes out next week that while we are working over the last year. We kept saying oh my God. This is in the news. This is in the news. This is in the news. It's a lot of the issues. He was handling and that he addresses in the book keep coming up at one of them. Obviously the independence of the fed as he describes in the book, he was in the treasury department when LBJ was president LBJ very much was opposed to raising interest rates and put some pretty strong pressure on then chairman, the longest ever serving fed chairman William mcchesney Martin. So he recounts that meeting in the Oval Office. He also talks about and this has gotten a lot of attention this week. The I think. He's he's first surreal. It's first time. He's really talked about when he was summoned to the White House to talk to Ronald Reagan. This was a year after he'd been reappointed to the fed by Reagan, and it was an election year nineteen Eighty-four and instead of going to the Oval Office he was called into the library and his memory is that James Baker. The then chief of staff told him the president is ordering you're not to raise rates. So he's seen this before. And the president. I just love the Republican president Ronald Reagan who was not known to just sort of keep quiet kept entirely quiet, essentially, led the chief of staff say what needed to be say exactly sort of preserving deniability presumably, so I mean, but of course, what's different about both of those circumstances. They weren't public. They were doing this behind closed doors that we're trying to exert their influence, they may or may not have succeeded. I mean, and he also writes about how Arthur burns had this relationship with Nixon where a lot of people thought Nixon got his way with. Then fed chairman Arthur burns, but it was all behind closed doors. You couldn't see it. And of course, what we're seeing today with Trump being so vocal. So public is different. Does he worry about the independence of the fed because you've got a president who is being so outspoken so vocal? And it's out there front and center, it's not behind closed doors. Yeah. I mean, I'll tell you. I mean, he he has been impressed by what he's seen from today's fed chairman. So he has some good things to say about Jay Powell. But he's always worried about the independence of the fed, Ed. And of course, what he reminds us. How is that? The executive the president has no official power over the fat. It's all the congress. So what what really matters is whether the members of congress are willing to stick with the fed so far it looks like they are. But you know, that can always change. I wanna ask you about something that comes up in the book specifically along these lines, which is the power and influence of the chairman of the Federal Reserve because it changed dramatically when Paul Volcker came into this role during the Carter administration. Correct. Yes. I mean. So like, I said Arthur burns is somewhat remembered as having become too acquiescent to Richard Nixon's desire to keep the economy growing. So that we could get reelected. And so a lot of people blame him for allowing the inflation to really get going in the seventies. And then Carter appointed this businessman. Bill Miller who really didn't have the chops to get his way. And so by the time Volker came in as the fed people really weren't weren't sure. Central banks who get it done. Arthur burns himself gave a speech saying, you know, I don't think central banks can necessarily do anything more. You know, people sort of throw up your hands kind of speech. Central banking, and was his big public speech at that very moment that he was giving that speech in Belgrade that the IMF meeting Welker was flying back to Washington and getting ready to hold a Saturday night press conference that change monetary policy forever. And by the time, he left you more than a decade later people had enormous respect for the Federal Reserve. And so one person can make a big difference. You know, having that ability to to stick up for what's right? He believes fervently and the importance of of monetary policy and being independent because price stability is very important. It's it's as her of all economic growth in his view. I love when you talked with us earlier this week in you talked about how Paul Volcker really had a sense of civic duty. And this comes from his dad. I mean, look at leaders today. Some who just kind of want the power and the position and the title, it seems like he sought very differently. Yeah. I mean more than anything else. This is why he. He wrote this book because he is consumed with this concern about the state of our public servants. And the basically the people who are just getting stuff done in government, not having the support and the training and the wherewithal to do the do their job correctly. And that is undermining trust in government and allowing politicians to kind of take shots at government and chip away at it. And you know, you see these relatively sort of hostile people being being appointed agencies that they don't really want to exist. So and that's a big problem. And but he doesn't say it is an all new today. It's it's been kind of growing. And so he's he's very strong believer in better training public servants and his father as you mentioned was himself. A public servant who turned around the town of Teaneck New Jersey. By just managing it really effectively leaves an engineer by training. He believed in getting things done efficiently. He made a big difference and Paul Volcker's childhood was consumed with this idea that that was the best way to spend your life. So the excerpt from the book, which is out next week the book that is is out next week. The excerpt is available right now, it will be featured in Bloomberg BusinessWeek magazine this week Christine. Harper editor Bloomberg markets magazine, co author with Paul Volcker of keeping at it. It is a phenomenal read we're so proud of Christine. Pretty cool pictures in there. Right grave picture. It really is amazing. And also, there's an excerpt on Bloomberg opinion today, another excerpt of the book that is some Paul Volcker's views on inflation, not surprisingly catching a lot of attention out there, given how as Christine mentioned how incredibly timely it is. And that historical perspective has experience. It's just it's breathtaking. Well, think about the cycles. He saw anybody understated inflation. This is somebody who certainly did and had deal with massive inflation something that I think you've got a whole generation that doesn't even get Christine Harper. Thank you so mind, you Caroline Jason. And everybody should check out the bookkeeping at at the quest for sound money and government good government written by or with Bloomberg markets editor Christine Harper. All right. Let's get some world and national news for that. We go to Bob moon in the eleven three oh newsroom Jason Carroll. Thank you serious of bomb. Scares was the breaking news today..
"paul volcker" Discussed on Money Box
"Steve, I know that you've gotten encyclopedic knowledge of ninety s go groups. Do you recognize this band? It's not goes out. So. It is not goes down from Poland in the US cold volka man leasing used to work in politics. He was involved in discussions about the Volcker rule. We going touch and he told us they chose the name because I'm die. Quote at first glance, it sounds tough and German and maybe a little scary when in fact, is actually ninety year old. Communist. What a great way of choosing names now being named after columnists. Okay. I'm gonna Stiglitz. That's a good night for a great name for a ban. Welcome to the stage statelets. And just to prove that hair on economic subtitles, we take you to places. No one else will even Bill Silva, who wrote Povo. 'cause biography hadn't heard of a rock band. Well, you know what? I do one better for you. Yeah, there was a horse named Volcker Grady who used to be the secretary of the treasury owned a horse, and he asked Paul Volcker good. He name the horse. Volker Volker asked him which end. And he said the whole horse, he said, fine. That is better. You won this folk guys road, Joe Kernan. That Bill guys, the most soothing voice demise. I just couldn't. I couldn't find. I want him to read me a bedtime story. I wanted to read me Harry Potter every night, so that would be really good. I k so Rebecca McDonald is an economist from the university of Birmingham and is here to help us make sense of all of this higher Becca. Hello, nice to have you. Okay. So I up Bill was talking about the US Federal Reserve, which is central Bank. What is the role of central banks when it comes to interest rates? So the big ideas I think we got from what Bill is talking about is that central banks used the policies, including interest rates to try and balance economic activity. And inflation can use the interest rate to try and affect the amount of demand in the economy affect how much people want to buy and that can reduce. Inflation are Rebecca. Let's go back to the beginning on the real basic question. What's our interest rates actually for? Okay. So let's go even further back and say, what is interest? How's that. So interest is actually just the money that you pay for borrowing money for a period of time. So the interest rate then is the price of borrowing money. So when we think about the interest that we pay on learns, we've got a festive oval is that the lenders, the people that are lending money may be banks. They're actually profit making businesses, and they need to make more on the loans that they give. Then they have to pay out on the deposits that they hold. And that's why we see the spread between borrowing and lending rates. Okay. And the reason that we actually have to pay interest rates when we borrow is firstly, it's a faith borrowing at all. Okay. So the Bank needs to cover the costs that it has at Sosa because we're paying a fee that covers inflation. So we need to pay some interest to cover that inflation cost for the Bank, but there's also a fief risk. And this risk is basically the risk that learns on not gonna be repaid, so who is actually making the decision. About what the interest rate I have to pay. Is it my Bank or is it the central back that we've talked about? So yeah, it can seem quite tricky to see link between the central Bank is doing what the interest rate saw that you get offered on. You'll risky business ideas or your pets? No, borrowing the banks at the rate you receive for all the reasons that we talked about, including the risk and inflation, but also because we talked about having to cover that costs and part of that costs is related to the central bank's interest rate. If the central Bank rate goes up that costs of borrowing from other banks from the central Bank, we'll also go up and that's where the central Bank interest rate kind of feeds into the commercial rights that we see. And that's also why typically, when the central Bank rate goes up and down, the commercial rates will follow. So let's have a look at how rates set by central Bank. That's the Bank of England have changed over recent years..
"paul volcker" Discussed on WAFS Biz 1190
"It looks like the house of representatives is getting ready to approve a bank deregulation legislation so they are looking at a bill and it looks like they're getting ready to do this that they are going to look at the deregulation of the financial sector some of this is very good i'd say the majority of it's very good but let me tell you something i one thing we've learned if we haven't learned anything else banks don't need any real help in order to make money they're doing just fine thank you but understand dodd frank and i was on favor of trashing dog doddfrank for the most part but they are likely to the dodd frank bill and the and the and the consumer regulatory bill that was passed onto the obama administration includes a little thing called the vote volker bill which is named after paul volcker one of the federal reserve chairs and saying that banks can night cannot have to limit anyway what they invest it and they can't be investing in proprietary things except for a very limited basis well they've done pretty good by not doing that and we now have banks that are probably capitalized better than they've ever been in the nation's history and for some reason we feel obligated to give some relief to this proprietary trading regulation and i'm not sure why why are we so why are we gonna let the banks engage in more speculative trading i mean look i'm all for the deregulation some of these regulations are ridiculous and i'm all for deregulating some of these rules but i probably sit here the only conservative economists that's for doing away with this wide because they want the stock prices to continue to rise but i would suspect maybe not in my lifetime it's gonna come back to harness and we're going to see these regulations coming back in but it's going to be far too late i think they need to rethink this but they have rethought they have thought this over very carefully the lobbyists have said vote this way and they thought about it and saw the campaign funds coming in and have decided that they thought about it enough.
"paul volcker" Discussed on Rich Dad Radio Show
"The dow is going to be a lot worse it's getting worse trouble is going to get a lot worse than affects gold correct now go back nineteen seventy seven jimmy carter's president and very few people know this in nineteen seventy seven in the united states treasury issued bonds treasury bonds denominated in swiss francs that's how bad that's so quickly competence was collapsing in the dollar now we turned it around paul volcker ronald reagan higher interest rates there was a whole we were crashing the plane was crashing and volkswagen kinda grab the joystick guy that out of the dive and got it back to king garagan kid then it became the king dollar standard in the eighties nineties all the way through to to not not that long ago but imagine the united states treasury people saying i don't want to hours i'll take treasury bonds but you've got to put them in swiss francs not dollars that happened they were called carter bonds very again very few people know that so we've seen a close brush with the loss of confidence in the dollar in the late seventies and we're we're we're seeing one again and so the thesis behind gold is okay if people lose confidence in the dollar and you've got to restore confidence you know you're in this nosedive again who's the knew paul volcker paul volcker still alive and well you know i see him caisley in new york but you know he's not going to be the guy save the world the next time how are you going to restore confidence in the dollar and one way to do that is with gold if you said okay now we're going to have a goal back to our even if it's not a hard gold standard it's reason goes to reference for using putting gold back into our monetary policy considerations that will restore confidence then you have to ask yourself the next question okay what's the price because you know one of the criticisms of gold people said we'll go can ever be a monetary relic barrick our pets which by the john john maynard keynes never said i i so i dug into that one gold standard correct standard was a goal he did not say all barbara's relic he said the gold standard of the time he was right about that that was a mess but i richard book.
"paul volcker" Discussed on Masters in Business
"Compound well that's a pretty big inhibitor sure to that because the ability to get out of the way of the oncoming freight train the bility to load up on an asset when it's really cheap that's really how you compound wealth through time and so that benchmark free investing which was originally the where to hide port folio no really has been part of our dna since nineteen ninety nine wasn't until oh one that somebody gave you know had the gumption to give us some money to invest and how has a portfolio done since and how much assets has it attracted i'm it it's done very well versus stocks and bonds or any combination of over that very long period that it's compounded i don't know off the top of my head but much higher than stocks over that time period half the volatility gotta sharpe ratio of over one well sure from two thousand to two thousand and two thousand twelve at us equities effectively flat with a ton of volatility in between and bonds just kept getting bedroom bedroom better over that time so now looking at real plus five from here with what a number of high profile bond people be bill gross or jeff gone locked have pretty much declared the bond bull market over what what's your outlook on bonds from here does gmo see the bond market and that bond bull run that dates back to fed chair paul volcker is that still having life left to it or is gross and unlock correct the best years of the bond will market or behind us over the intermediate to long term i think it's hard to see.
"paul volcker" Discussed on FT Alphachat
"Charge of monetary policy as being the person who more than anybody else takes credits folk for breaking inflation rather than thinking of it in terms of the us and the rest of the western world had this malays had very serious unemployment's that's pushed down demands and allowed inflation to to come down what was more important do you think why did we move away from the base of your research how did we get beyond that period of the of the great inflation i think there clearly wasn't important policy change and it's one of those times when there wasn't important interaction between academic ideas and policy it's it's interesting to think back on how different people's thinking about inflation was in the late nineteen seventies but it was a time period when even many prominent academics we're talking about the idea that it was very clear what might drive inflation that perhaps high inflation was a cultural phenomenon that perhaps monetary policy could do nothing about inflation and so it was quite a radical thing for paul volcker to take the view that he was going to do what today might be viewed as conventional policy to bring down inflation by raising interest rates and then just towing a very hard line on this despite very negative reaction by the public certainly at at the beginning of this episode and you know at the same time you know some years earlier had been this landmark work by milton friedman which is very closely related and his work general contribution along the lines that that fundamentally inflation is a monetary phenomenon which today sounds lake you know conventional wisdom it sounds like nothing controversial but at the time was a very controversial statement it seems to me like this combination of you know paul volcker who clearly his ability to commit to this policy of of of low inflation.
"paul volcker" Discussed on Here & Now
"Here scanned the positive economic headlines concern about where the turkish economy is heading refuses to go away peter kenyon npr news istanbul so now you now what's going on in turkey this podcast and following message are sponsored by ziprecruiter are you hiring every business needs great people and a way to find them something more than posting your job online and just praying for the right people to see it ziprecruiter revolutionized tiring their technology finds great candidates for you it learns what you're looking for identifies people with the right experience and invites them to apply to your job right now listeners can try it for free at ziprecruitercom slash here that's slash h e r e zip recruiter the smartest way to hire this senate begins debate today dan a bill that would weaken the doddfrank banking regulations passed after the housing collapse and financial crisis one of the things the bill would change is the socalled volcker rule named after former fed chair paul volcker and the current federal reserve board is also considering changing that rule so let's remember what that is with elli val she emma's embassy anchoring economics correspondent and cohost avail she and rule and alley start with the overall bill that the senate is considering to roll back parts of doddfrank remind us you know what was supposed to do and what the changes would do yeah a rubber good to talk to you the the whole bill was meant to sort of prevent banks from doing all sorts of risky things that could affect the economy as a whole um and they're been a lot of complaints over the year mostly from banks but from others who say that it's been a little too restrictive so the core of this new bill is go to exempt about two dozen financial companies that have assets of between fifty billion and two hundred and fifty billion dollars from the highest level of scrutiny by the federal reserve so there are three parts to watching this bill the effect that it has on community banks bills with fewer than ten billion dollars in assets they would be exempt from something called the volcker rule midsized banks would get less scrutiny and the bigger.
"paul volcker" Discussed on KMET 1490-AM
"The paul the new die opposed to um john young i don't have strong feelings either way uh on that one i just hope he keeps going so yeah exactly well he's a non economists right in one of the first non economists we've had in probably in 25 years ever since before greenspan was in there so greenspan and go back even paul volcker so yeah i i think you fed policy is interesting in that we really turn to the fed and the treasury to bail us out of the last recession is that why we're raising rates in case we have to do it again isn't that i think anything of the rates are just the kind of legislation that regularly the federal resorts primary goal yes it is you're talking about the mortgage market but the federal reserve's primary goal is to to watch inflation bright which is negligible at the moment what happened in reagan the reagan era inflation was so bad leave rate the hiked interest rates like four or five six eight ten percentage points like overnight them who's this horrible now that was what has to be done at the time and the federal reserve goal was to make sure we don't have an inflation and a of the office of a recessionary periods of inflationary period so we're we're it's were literally right in the middle of the curve right now going from a re recessionary economy to an inflationary recounting the old saw the corners if you have money and just seems a of your 401 k your ira life is gonna look better few because they're gonna start paying interest rate pirates rates well hey bill shut out your phone number where up against the clock as he would lease a shoe will thanks so much yeah it's bill milf as or or are and my phone number's eight one eight four zero six four seven four four again eight when eight four zero six four 744 bill thank you very much for coming on the show great education in a great talking with you again thanks so much and thank you and i'm jeff pardon.
"paul volcker" Discussed on Masters in Business
"Um if anyone you know uh i i i a not very much in terms of like mentors political mentors that i would go to it's because of how icon of learned which is i have to learn myself through experience is you know so i mean there are people i admire up a lot i so i think that they had probably and influence to watch paul volcker let me early to watch paul volcker since or through my lifetime since nineteen seventy one when he was the under secretary of the treasury for monetary affairs all through the 80s and to watch him as a highly respected deep person i look around me and i i and i see people who i admire i'm i admire mike bloomberg i think my bloomberg for example and building a business and dealing with government becoming a government official and a philanthropist has been extraordinarily effective in all of those different ways and by encouraging him right down his principles his recipes for success because when we like the know those and so there are a lot of people you know in the markets paul tudor jones a friend of mine and so i admire i hear men uh not at i maramis character and i admire uh you know how he makes decisions a we talk a lot about that so i and i've had mayo many people i don't want to namedrop too much but a lot of people in their own ways seeing what they're like an interacting them i think had an influence on me i wouldn't say that i've had on any classic mentors along the way so you mentioned joseph campbell's men of a thousand faces what are some of your other favorite books well on two others uh come to mind.
"paul volcker" Discussed on Bloomberg Radio New York
"They in that sense he's he's a part of that community is a main voice in the yellen consensus but he's also very strong experts on regulation supervision payment systems and so many of the other missions and duties at the fed has outside of monetary policy this is the bloomberg television and radio special on the next fed chair we're talking with that historian peter conte brown one bit of news just out before i ask peter a question michel crepeau he's the head of the senate banking committee who will cut firm the new fed chair says he hopes to have it done by year end friday as possible now that's reserved for extra for her peter let me ask you this as we sort of wrap up we went through a very long period of extremely strong said chairs merida eccles william chesney martin paul volcker alan greenspan then we got to bend and he sort of needed about the committee janet yellen expanded that have changed the way the fed is run it monetary policy is run from one man deciding what's going to happen to a real committee system now this is one of the secular trends this this cycle in fit history that goes back and forth you're right naming this very strong fed chairs but each one that you name there were periods where the committee rose up and demanded more participation or we see with with britain anke starts with the committee and then in the crisis he grabs the rains and he starts to to really take control but we are in a moment and yellen has it really extended this of committee based governance and everything about jay powell suggests that's his vision as well that's a very good thing i don't think we should have these these empires cult of personality and so i think this is a good thing that we should expect to continue usually valuable this afternoon and thank you so much from president trump's warden peter conte brown and of course is important book really new ones manucher and operations of the federal reserve system is not mm function the power in the independence of the federal reserve screw your bedtime reading the last couple of days and.
"paul volcker" Discussed on Bloomberg Radio New York
"The expectation of ever higher prices was an enormous achievement from the standpoint of the markets though paul volcker was a traditionalist i am as i layout my my characters here in this book there there are the engineers the it baram the guys in chicago the guys in berkeley coming up with marvellous new academic strategies but in there are the people who are the traditionalists who are trying to sustain a market that they know a market that they know works a market that they understand and paul volcker really fell on that side of the divide she is an awardwinning financial journalists the author of the wizard of laws the best selling book and hbo movie about burning made off then today she has been talking with me about our newest book first class catastrophe the road black monday the worst day on wall street history publishers weekly calls it must read for anyone who wants to understand why financial markets lurched from crisis to crisis diana in rica's were return for port tour this interview week we've got this same charm by the way if you have comments about the program or suggestions for topics please email me at a closer look at bloomberg net that's a closer look one word bloomberg got met and follow me on twitter arthur levitt one word his closer look with arthur levitt.
"paul volcker" Discussed on KHNR 690AM
"Way could do so the when reagan cut packer hold volker cook the aircraft great but conquer hooker they're great but clamper bit borrowing that me the poor in the middle class way way way way lee you're that you're just you're totally totally screwing up history again this threeplusthree to simple seven lee because you say so when paul volcker paul volcker the fed chair at the time entered the reagan presidency when those were going on simultaneously we were dealing with the stagflation era and the dismantling of what was known as the phillips curve the idea that somehow you could use the printing of money to decrease unemployment in the economy paul volcker increase the interest rates dramatically which actually caused the recession in in the early years people were paying like fifteen and sixteen percent for a home mortgage did i mean it why you just calling and making stuff up make america great work cut great great under the late great was made really no time out of not gonna let you do this can you just acknowledge that what i said is true that volker hiked the interest rates dramatically to cut inflation in the early years of the reagan years which caused the recession tough can you this acknowledge that there is factually in historically correct well listen i know you refer all day brooke get off the phone or get this guy off the floor i can't take it by derailing can't i'm not doing it sorry get off the phone i was hoping this guy was going to rescue liberalism any only humiliated it further you understand folks league at the this is we've had three i've given them a shock i've given them a shot liberal callers i have given number shot all night this cannot call in with anything of substance at all ever paul volcker decrease the interest rates were paul volcker god when the reagan presidency started the hiked interest rates dramatically to stamp out the massive inflation in the economy this is scott not know that i mean what are they do do they sit in front of the bridge you're roofs as you just heard that last caller who they just.
"paul volcker" Discussed on Bloomberg Radio New York
"And discuss what they were doing what they were looking at what was seeing and there was all sorts of conspiratorial over meanwhile is just six guys in and around june the fat of what's thus they liked and didn't they they had far less power than than was ascribe to them but i like the idea that taking place with with the new york fed speaking of the third you did work with the former chairman pull volker i did notice on the thrills of my professional career so so tell paul volcker better known as tall as they also known as anchor for many years after he left i should say paul volkers one of my one of my heroes you know you've turnabout about profiles encourage but what paul volker did under enormous pressure and we're very high stakes to break the back of inflation in the early nineteen 80s and really big cuiv really the foundations for a 25 year bull market in bond and stock he is far less credit and he should all my is really the climb argued is truly a 30year bond bull market and the recovery in both the us economy and the us stock market yeah and all based upon basically making the right decisions for fiveyear periods lulu one of the giants of economics but to answer your question after he left the fed he spent many years that something called the group of thirty which is basically an informal organisation of a former policymakers and the group of thirty commissioned a paper by me i'm not a member of the group of thirty i'm not in that club but they occasionally commission papers and so paul and his team asked me to write a paper right after the asia financial crisis on sort of what ida ninety eight ninety nine what the global currency markets would look like in the in the aftermath of that crisis and so i took it as an opportunity to writer along sixty paid scholarly paper thinking about the foreign exchange markets after the asia crisis osa real real treat to work to road work with him that.
"paul volcker" Discussed on NPR News Now
"And steve beck the report's at federal regulators have taken another step in that direction to limit risktaking after the financial crisis congress enacted the volcker rule as part of the doddfrank law and banks of chafed under its restrictions the rule named after former federal reserve chairman paul volcker bans banks from proprietary trading using their own money in hedge funds and private equity funds to make speculative investments under new socalled seething guidelines adopted by the fed in consultation with other agencies banks are being given more time to stay involved in such trading they will have up to two years to provide seed money to set up funds provided they own less than a three percent stake for npr news i'm steve beckman washington former vice president al gore's says the trump administration's decision to withdraw the united states from the paris climate agreement has not kill the accord i was deeply concerned that other countries might have used that as an excuse to pull out of the paris agreement themselves but i was immensely gratified went almost immediately afterward the entire rest of the world redoubled their commitment to the paris agreement gore speaking to the commonwealth club of san francisco president trump back out of the paris accord in may but many cities in states are pledging to work to meet its goals i'm trial snyder npr news from washington support for this podcast and the following message comes from random house children's books with the golden compass by philip pullman revisit the epic adventure this summer in anticipation of lebel silvashko the book of dust volume one pullman new adventure available october nineteenth.