38 Burst results for "fed"
Fresh update on "fed" discussed on Lynne Hayes-Freeland
"Jerome Powell says the economy is improving but has a long way to go. The Fed chief testifying today before a House panel pledged to keep using the feds tools to help the economy but reiterated that it's up to Congress to provide more fiscal support like jobless benefits. Stocks are mixed. The Dow is down 25 points 1/10 of a percent, the SNP is up a third of a percent. The NASDAQ is up two thirds of a percent. The red hot housing market shows no signs of losing steam existing home sales in August. We're up 2.4% from July the strongest pace in 14 years and prices jumped more than 11% from where they were last August. And the supply of homes remains tight down more than 18%. From a year ago. Shares of Party City are up nearly 10% on a Halloween bump. The party goods retailer is opening Halloween pop up stores and hiring 20,000 temporary workers. Mona Rivera Bloomberg Radio. Typically.
Former Dallas Fed chief calls for people to return to work
"Federal reserves as people have to get backto work, Richard Fisher says Texas has too much of a stake in the national economy for people to remain at home. We produced more than South Korea more than Australia, more than Spain more than Russia. More than Canada and more than Mexico 30 million people who produce and are the job creators in America, and we have to put them back to work when he says putting people back to work also generate more spending and tax revenue, all of which are important components and reigniting the state economy. The pandemic is not
Fresh update on "fed" discussed on WBZ Midday News
"That, according to Johns Hopkins University tracking project, The somber milestone comes as White House health officials are still at odds with the Trump administration over safety measures like wearing masks to stop the spread. It's a number that seemed unheard of back in March, all 200,000 Cove in 19 patients dying in the last seven months. They're of all ages, genders and races, but more men than women and a majority were over the age of 65 years old. Nearly 1200, who died were front line health care workers is Young is 20 years old. Currently over 28,000 people are hospitalized with Cove in 19, the lowest number since June at like Stone 80 CNN the economic fallout due to the pandemic, also a concern Some activity has picked up during the re opening, but Fed Chairman Jerome Powell telling lawmakers today on Capitol Hill that employment and overall economic activity remain well below pre pandemic levels. Michelle Franzen, ABC News Mayor Marty Walsh, announcing this afternoon that Boston's mobile testing site will now be located in Dorchester's Grove Hall neighborhood. If you're interested in getting a free test, you Khun visit that site on September 22nd through October. 3rd. No appointment is needed by the way that you do after register and you can check the Boston Duck of website for their hours of operation and the address. The Kentucky attorney general will announce soon, possibly today. Criminal charges against the officers involved in the police, shooting and death of Briana Tailor or Maybe no charges. This is a big decision. And a big waiting period for many ABC is Alex Perez reports. A separate proceeding is also making headway in Louisville. Here's more on that. Six Louisville Metro police officers are now under disciplinary investigation in the shooting death of Briana Taylor. Six include three officers who are part of an ongoing criminal investigation, as well as three other officers who were also involved in the raid. When the fatal search warrants was initiated, the review could result in disciplinary action. Or even termination. Cambridge police have been trying to bring more diversity into their ranks. But the department says that's on hold. Double D B Z is James RoHaas reports, the Cambridge Police Department says calls to defund the police have delayed a class of diverse candidates from becoming officers. Nearly 20 candidates made up of mostly minorities were looking forward to becoming Cambridge police officers. A plan to start training at the new Cambridge Northeastern Police Academy this fall. But after the death of George Floyd there recalls to defund the Cambridge police departments. The funding means different things to a lot of different people. Yes Oh, that That was a movement that also eight home here in Cambridge Director of Communications Jeremy Warnick says. Some fund.
Chinese Leaders Split Over Releasing Blacklist of U.S. Companies
"Investors are hoping for a better day today after losses across market yesterday, but it wasn't a typical selloff stocks drop but so did gold and oil are markets editor Quinton web explains why that matters. It was notable various asset classes sold off together. So not surprising no oil sold of two because if you take a gloomy view on the economic outlook, oil is likely to fall in price nights. Villette gold sold off to gold has been wising for most of the year, but it seems also, it doesn't necessarily this year always rise in other markets falling. This is nothing like I should say the panic of where all asset classes because they was selling off. In tandem investors just rushed to raise cash but in this case, gold seems to dipped a little bit alongside stokes. What's notable is we've seen this kind of broader shift in sentiment I think in the last few weeks. So other summer of kind of almost relentless rallies, we've had several weeks now where stocks sorta traded sideways down and this was a very bad start to this week. So it'd be interesting to see how US equities trade throughout the rest of the week. Today. We get Nike's earnings report also Fed Chair Jerome Powell and Treasury Secretary Steven. MNUCHIN. Begin three days of congressional testimony.
Fresh update on "fed" discussed on Balance of Power
"Upside down. And June John Rosen and Taylor over 100 College, requesting Department of Treasury and the Federal Reserve Urgency target economic support. The bridge is temporary liquidity deficiencies face in commercial real estate virus created by proceed crisis waiting that just do it. They still do way believe that sustained do that Federal reserve the military bridge. I think you have to various, so this to have many businesses by economic is Russia. On Friday. The released on Main Street Lemon Program stayed in that condition. Do not war changed to allow Sister Basic bar. You can't own it for me, please, sir. Well, first, let me say again, Paolo and I agree with you that the commercial real estate market has an issue. I just want to clarify When people talk about acid based lending. They traditionally don't Include Realestate in that they're the real estate market is its own markets, so that wouldn't necessarily be part of an acid space program. There are structural problems. I know some people in the House tried to work on a proposal of preferred equity so that it could be going below the existing but power and I will continue to work on this and it's an issue. We don't have a solution. We wish we did. Okay, Well, uh, Chairman Power wants to come into because that night I was on a call with you several weeks ago about decision alone Rams into Taylor. Yes, And you know, both of us are very familiar with with the letter that you sent and have studied it carefully and done really looked hard at how we can reach the problem. We're talking about it. A lot of the problem just is it with commercial mortgage backed securities. Those loans contained a provision that says you can't encourage ish inal debt. Secretary referred to a way to get around that, and that wouldn't involve the Fed, though that would be something for legislation. And we do understand and appreciate that This is a significant problem in the economy and keep looking for a room. Solutions. We don't really have a solution. No wonder with the tools that we have. And I haven't been that We don't have a solution. I think one of the things that really about the law, make a when we turn back about $130 billion And the fines and then you find out that all of these people that was suffering tremendously, and they have Coming up to maybe releasing some, like Oh, Alive Group of employees can down there and I think even I had the opportunity to hear waters about something that was having even in the area. Uh and and I'm glad that you are concerned. We need legislation. I quickly we can get legislation to sour could be included. In negotiation on the heroes at hand. What is coming out saying it, But I know the Senate Which was stated today still have passed anything so I don't have much time left, but I'm glad that you are always continued to keep at the folk rhyme. Becomes a lot of these employees this everyday people that need help on with that man in your bed. Kim. I recognized Mr Hollingsworth from Indiana for five minutes. Good afternoon. First to you. Chair Powell. I was recently excited by the news about creating a more symmetrical inflation target. I think that was great news. I know it's something that you and I have discussed at length privately publicly at these hearings. I'm sure had a lot of.
Interview with Kayzo
"Time to slow down a little your. Time now. More, than pursue it was it was much I. It's still nice but I'm definitely. At a point now where? Be going, to bed. At like. I'm in like some. Like nine thirty. Every night I've only going to bed. So early every night so very well rested the first time in a long time. So now I'm like h Tina. Traveling, place I'm I'm ready but. All the time. Yeah. Yeah. Absolutely. Man I mean maybe as a way to get into it, I wanted to ask you about this because you're one of the few people I've talked to WHO's actually had this experience you did at least one of those drive in shows, right? Yeah I did one in. It's not technically Charlotte but it's called the fountain. Outside a Shar like. Forty five minutes as a shirt. That I mean walk me through that experience because I'm I'm so curious what it actually felt like to play one of those shows, right? Well, you know it's interesting because. I feel like. Every. Time. They're still I guess every week or so. The climate surrounding. Coronavirus or country or if you wanna Mike. Rugged down to what we do in music. History. Shows and safety every week or every couple of waste seems like there's a different. Tone to. The overall consensus of. Or what's not or what's what's what's considered okay, and what's not considered okay. So at the time of Accepting the drive in at the very beginning of the pandemic but that's Close closer to beginnings. He's ideas started coming on board around and I was like well only if it's safe and. assured was assured it was going to be running with all the precautions. needed. Sauza guy let's do it At least could say I did warn in my lifetime looking back on this and. The entire experience break down it was so. So. Interesting. But it was also really great on the road team. Have that one little sense of normalcy for the back with that family right? Because that's family were disconnected from right now. Yeah. Dude I. I feel like normally I spend majority of my year with these guys in the it's the first time I've seen him since probably February which was pretty wild. You're the show was It was it was interesting was very I know there's been a lot of mixture of us in a lot of controversy and a lot of different viewpoints on the drive in but my experience I can only speak it test mice during read. The people that were vice show of. It was. It was extremely safe I got there and Obviously it's. It's a it's an interesting way out stage is not normal stage, but you look out there near. Plot of land. It's massive view. It's actually in a beautiful area north. Carolina was palm land in your ads they will drive in the middle of nowhere. You know when he started when we got there for the show We had a little green room of whatever you WANNA, call it like the bandages office. Entire thing I'm looking at this? This is insane like hundreds and hundreds of cars, but all all within their confined space. And I was like nervous. We'll see our kids gonNA like. Kids. Tend to break rules Orlean at our bend the rules. Like a follow them until they get into an arcade screw, we're going to go your own thing. What I notice was everyone was actually like. Inner areas tailgating in their own area so We weren't like. Johnny not allowed to drive a students staged way to walk to the stage, which is totally GUAC panacea at all but I walk through these cars everyone like in their own spot hanging out with a small group of people everyone had their masks which I was nervous as. I. Don't want to be one of those things where. Everyone's in their mask and everyone's raging I'm like, please please please everyone is saw. A FROM MY CO engine stage wearing their masks surprisingly a lot of people were. Staying in their cars with all the tour shut listening to the music raging. That's interesting. That's kind of why were they was it on like a like an FM. Station people to so this was this was this was one of those ones amodio station June into classic drive in situation and A. was kind of interesting about the layout was we had a stage in its smaller stage. It wasn't a big festival Susan that. Was Cool. Is Right next to the right of. The movie was the wall movie projector. Only thing is like hundred tall was thing is. The biggest movie screen of. The had alive live streaming camera angle couple of angles of the media Jank from booth cameras hooked up there were projecting like live casting off the big screen and they had that makes in with I brought my vj. So he was able to to display my content. On this really cool large movie screen mixed into my live cam feed and. It was really cool. It was like I've never seen anything like that for a show like scream out large. That pretty interesting show itself. it's it's weird because we had my own borders. So they were like festivals don't monitor so loud for me on like a normal joe for me,
Fed's Powell says US economy faces long, uncertain recovery
"Jerome Powell says the economy is improving, but in testimony to be delivered tomorrow before a House panel says it faces a long, uncertain recovery. How will appear alongside Treasury Secretary Stevens?
Fed Cup to be renamed Billie Jean King Cup
"The Fed Cup has been renamed the Billie Jean King Cup and there's those big plan fair announcements about this week and it's a lovely lovely thing I think it feels so so right there is I think one caveat David that you pointed out on twitter which. Which I very much agree with. How How how much does it really? Well first of all, I agree with you I think I'm ready that it's been renamed. That's The. Caveat was the if we are renaming the Fed, cut the Billie Jean King Cup. It feels even further away that we're GONNA end up having the the great mixed team competition or Fit Slam slammers I'd love it to be. A combination of the Fed Cup or the Billie Jean King Cup in Davis. Cup, that I think the sports so. Hugely needs that feels further away. But maybe maybe that's maybe that's not the case. Maybe the fact that her name is on it and she is may be involved more. We'll bring that closer together because she so much wants that is well, she's. The biggest campaign for. Men and women working together and and being on the same page and being on the same bill for goodness sake. and. Hopefully. That will come in the future I mean. There are those events just don't exist this year. So this is the news news, the renaming, and and that alone really really about just one article Chris Clare in the New York Times right timing done an interview it but a Jianqing, I really enjoy a recommended he coach Bud Collins. Once. Saying that the Fed Cup is a splendid idea with a lame name and he quotes spitting Jean King saying. When a woman does something always think we do it for women when a guy does something, they never say they did it for the guys and so one of the changes I hope I can talk about more and more is that I would like people think that we. Are Doing it for the sport not for Women's Sports and I I thought. Absolutely right. It's It's about time attitudes changed. Yeah I thought that was. A perfect summation of both what Billie? Jean King is about an also how how this could be a a way forward for kind of mixed event and and a combination of men's and women's. Competition together but I mean personally that that that's not been my vision for mixed team event I've I've not thought that it should replace. Davis carpet. Now, village Inking Cup I genuinely think that it could go along alongside them. Both I don't think you need to. Get rid of them and combine it into one I. Think you could have a mixed team event like we had with the Hoffman Cup but make bigger thing out of that, and now we've got that point in the calendar with the ATP Cup and that I think that's the point. Many Times. Cup. Turn. So. Many cups when you did all the cups said back to back, it's Oh it's cup overload kind feels to be redundant to be talking about the of the moment you. Know. What the tent tennis Kinda is anymore but I mean personally I'm just saying I think there's room the space. It would be a great thing for a mix team competition to exist alongside. The Davis Cup in now Billie Jean King Cup that we already have our cup runneth over. A. Carrillo.
NYPD officer was secret Chinese agent, feds say
"Officer now being held without bail, accused of illegally funneling information to China Charges are serious NYPD officer by my dodgy in long accused of acting as an agent of the Chinese government, the FBI says the 33 year old community affairs officer at the 111th precinct in Queens, was in regular contact with two Chinese consulate officials. Passing information on about Tibetan nationals living in the area of the complaint says, and Long an Army reservist who lives in Williston Park referred to himself as an asset and his handlers as boss or big brother. Police Commissioner Dermot Shea says in a statement. Officer and long violated every oath he took to the U. S to the Army into the NYPD
Jamaican Monetary Policy: Behind The Music
"So, we called up the Central Bank of Jamaica ask what was going on with their music video and they put us in touch with Wayne, Robinson in economist and deputy governor at the Central Bank of Jamaica. Hello Wayne you're here with us now thanks for joining us I very basic question. What does the Central Bank of Jamaica do okay. Have you heard about the fit? The US. I'm sure. Yes. The equivalent of the US Fed Meka. Responsible for overseeing the financial system. Are also responsible for monetary policy. The issuing of notes and coins so I was on twitter. kind of scrolling through very distressing stories and I saw something that you posted on the Jamaican. Central. Bank. And it was like. It was all these dancers and it was like it was like a music video. Yes, think you are speaking to our, what was I looking at? Okay, the government took a policy decision. As part of its economic reform program. Transitioning or monetary policy framework and our and our monetary policy strategy. To what is called A full-fledged inflation targeting strategy. This innocence see what you're saying now is exactly like that is the kind of language I expect out of a central bank right I mean, it's very, it's very technical. Word. And precisely you're. I think you're not alluding to the challenge we face then. How do we break down just what I said to you? In language that. Every single individual can understand and can appreciate. And that was a challenge. Tour Pr Department and one of the things nor Jamaica. You knew that we're a country that is renowned and we love music and the PR department. decided to try to capitalize on this to try to tell the story in a language that everybody's speaks and everybody understands that language is is music particularly Reagan music music videos with like dancing and like everybody's talking about inflation rates. Yes. and. It's the what is it the low stable and predictable inflation? Predictable inflation. And inflation just it's it's the amount that prices rise. So inflation really high that means prices are going up a lot and and people get really scared because they're saving starts to be feel less valuable. Also. Begin to worry. So, then they will then go back on their investments as well. So that will affect employment and growth I feel like for time at least at the Central Bank of the US, there was sort of an effort made to be as cryptic as possible. The idea of clearly communicating monetary policy so that everyone can understand like that's actually not that's pretty new. Roof central banks. To recognize this imperative. And, a number of central banks have tried to change their approach. But I think coming out of the global financial crisis where one of the major challenges encountered was that are traditional tools of monetary policy I. Think Right across the globe central banks recognize that we had to augment those traditional tools and in a context we're not sion's where the market expectations and with an auditor man's. Rations really matter a lot. The central banks came to the realization that the hot to then a just how they communicate in order to affect those very same expectations with our which are important. Central banks they're known for being very formal, very stuffy cryptic, and even though there has been some movement away from that like you guys have just gone like totally in the other direction I mean this is like speedy. It's like exuberant and fun and people are dancing at it's just like so it's like the opposite of everything I associate with central banks. That was a deliberate strategy because we're. At the outset, the first thing that we needed to do was to grab people's attention. Because other say economics monetary policy issues tend to be very critic very boring very to use your term Recoba crosses as has been very stuffy. So we had to radically change that. So this is the first step was to grab attention. And then the knicks fees then was to then try and break down don't issues to do that. We had to do something radical. I feel like one of the things that central banks really try to do it's very important for them to be taken seriously because there's a lot of trust that is necessary in a banking system. was there any worry that like this might make people trust the central bank glass that it might seem like less serious? No No. No. That wasn't our concern really because, okay. One thing you really recognize with a need to connect to people. You can't build that trust unless you create a bridge on this, you meet that connection. And so this was the main strategy that we thought was necessary to make that connection in order to build that trust. Do you think other central banks should take a page from you guys and be More fun more accessible or sure almost definitely. But the precise strategy the precise methode would be a function of the audience that they're targeting. Are you in? Are you in Kingston Right now? Yes. The capital. Yes. Are you working from home? Are you going to the office now Willa? Combination? Some days in some days I I work from home. One of the strangest thing is that coming into the office? You're virtually alone here. Because we have minimal staff that that comes in. Do you Miss Your Coworkers Oh? Yes. Oh yes. The coffee breaks the chops accommodate. Over coffee. Yes. That's sort of camaraderie dot a about various direct social interaction. And the two should know we are thinking of ways you know to. Sort of encourage this evening this virtual world. Well, thank you so much for making the time I. so appreciate it. That's that's my pleasure. Stacey. Yambio. Nation.
Feds charge 6 people with bribing Amazon employees to gain edge on marketplace
"Federal grand jury in Washington State has indicted six people on charges of bribing Amazon employees according to the charges. The defendants acted as consultants vendors on Amazon's marketplace, and since at least twenty seventeen, they allegedly paid Amazon employees more than one hundred thousand dollars to give some third party sellers a leg up over their competition. The defendants are also charged with bribing Amazon employees to reinstate sales of products that were deemed dangerous like flammable household electronics. Amazon said statement that it supported the investigation and that it has been working with the federal agencies involved in the criminal probe. This part of a broader problem for Amazon we reported last year that the company has struggled to contain the sale of faulty products on its marketplace including listings for thousands of products that federal agencies have deemed unsafe.
Foods to Help Kids Focus
"Good morning, everyone, and welcome to dishing up nutrition brought to you by nutritional weight and wellness. Currently, kids are back at school already didn't the summer fly by WHO Know Carolina did it summer started in March? Yes Whether. It is full time or part time in person or because of the corona virus this year, maybe your kids have taken over your dining room table threesome champion a little bit more every room. Right whatever way your kids are attending school. This year brings some very much extra challenges for both students and for the parents. So we believe it is even more important to feed your kids foods that will help them focus and learn. Yes. That is so true whether your student is in college or kindergarten food counts when you want them to have good brain power. Well Good morning everyone I am Caroline Hudson and as a Dietitian I am constantly reading and learning about how I can improve my own nutritional counseling skills. So I can help my clam clients both young and, of course, old I. Want them to feel better do better and I understand how food helps build memory and focus in children adults, and of course, even in our seniors joining me today in studio is registered and licensed. Dietitian Theresa Wagner, who is living through this unique back the school journey with her three children ages eleven nine and six and April. Actually it was. Oh Yeah. It was April right TREASA. You wrote that great blog about the challenges as a parent who is trying her best to feed her kids, healthy meals and snacks throughout. Every day right. Beside loved your line in your blog about. Quote Mom Guilt Magnus don't have that out there. I mean moms out there I think everybody's saying. We sure do whether it's about food or anything I. Think we're guilty. or at least we feel that way. Yes but I have been debt registered Dietitian. Let's see here for the past twelve years and I know this because I remember passing the RDA exam when I was very pregnant with my son my first child. So over the years I think I have had. A lot of experience just trying to feed my kids healthy foods. Yeah well, however when The order came to stay at home. What happened I was constantly hearing I'm hungry. What can I have for a snack? It's amazing at how much and how often my kids wanted to eat to be honest at first I was able to manage the situation on how often my kids wanted to eat but I have to admit that after a while I just threw up my hands in food exhaustion exhaustion and just started to say, yes to whatever they wanted to eat. Now remember I'm a Dietitian and food is very important to me. So I wasn't feeling very good about what they were choosing to eat. Yes. In the short term, I found it was easier to just let my kids eat whatever they wanted but I knew that it was not what I wanted for my kids over the long term. and. Just like any parent listening I, want to feed my kids food supports their body and their brain and as reality of this Cova situation set in I realized that we're all in the same position and we could be for many more months. So I came up with three simple insights to motivate myself and hopefully others to make good food choices a bigger priority and again. I'll share some of these insights with you in hopes that they can help you. The one of the first insights I had was. I want to see my kids healthy foods because they build strong bodies, well-functioning brains, and disease resistant immune systems. All very important reasons absolutely Ashley Right now especially right now that immune support immune systems, you have to have a really strong immune system right now, right because if we come in contact with that virus, we want to be able to fight it off or if we get it, we wanna be able to not have horrible symptoms are. Horrible reaction exactly The second insight, poor food choices like processed foods equal. Poor Focus and poor concentration. Frankly, now that I've been forced into a new role as a Teacher's assistant. A role that I'm not super excited about. I don't want learning for my kids to be more difficult for them, which in turn would make my job more difficult. But most importantly, I want learning to be fun exciting meaningful challenging. Yes. But not difficult. So that was my second insight. And third maybe the most important in the short term and kind of looking through my parenting I as poor food choices leads to poor behavior
Emmys 2020: Schitt's Creek big win and Zendaya is the youngest lead drama actress winner at 24
"Emmy Awards were held virtually this year. A big winner. And the Emmy goes to to seven seven of of the the statues statues went went two two Shits Shits Creek, Creek, including including outstanding outstanding comedy comedy riding riding and and to to the the four four main main stars stars for for lead lead as as supporting supporting roles. roles. Here's Here's Daniel Daniel Levy, Levy, writer writer and and supporting supporting actor actor in in a a comedy comedy winner. winner. Unbelievable Unbelievable way way to to end end our our Siri's. Siri's. I I don't don't think think you you could could ever ever ask ask for for a a better better conclusion conclusion to to a a story story than than then then tonight, so we are absolutely thrilled. Best drama went to succession, best drama, Limited series or movies went toe watchman Zenda. Took home the Emmy for lead actress in a drama for her role in euphoria after her win, she did a zoom call with reporters. You know, it's extremely important. I think rude to me was so special about her character is that she is, um Hostile, whole human beating and she's layer than she's. Um, and she's complicated. Jimmy Kimmel hosted there was no live audience winners accepted via live feeds. Emily Valdas can extend 70 news radio.
Black Lives Matter In Belize
"Once again, this is Oscar Fernandez today on the show we put the spotlight on Belize and how the black lives matter movement shines a light on how believes is history has been excluded from Central American history, and so we're joined today by Nicole Ramsey who's a Candidate in a Department of African. American and African Diaspora studies at UC Berkeley she has an article that came out last month in medium entitled as Remind Central America to think outside the box she joins us today over the phone. Welcome to show Nicole Ramsey. Thank you for having me. Excited to be here is good to have you with us. I couldn't my introduction brief because actually pulled it from your article regards to Belize Central America. Once again, the Arctic was entitled Belise Remind Central America to think outside the box and when the central arguments you make in your article is that the black lives matter movement and I took this directly from your article shines a light on how belise history has been excluded from Central America. So, with that in mind, let me just go right there to the beginning and ask if you could elaborate and state your argument by what you mean by the black lives matter as pertains to beliefs which in turn pertains to Central America. Yeah for sure. So what envisioning what I was in? When I came up with the article title you know those with everything that's going on. There's been a lot of discussion and in terms of black lives matter and what that means for black population living outside the US I find a lot of conversations especially. I'm really interested in like conversations that happen online. I was really I guess interested in how people were conceptualizing black lives matter as mostly an African American movement which you know there's a particular history and reasoning of why how black lives matter came in to being. particularly in the US. but it was it was just very interesting to see how mostly folks from Latin America. Caribbean. Europe other places. Outside saw that as distance from what was going on in their particular countries. So. In the case, of Central, America you know black lives have always mattered. There's always been struggles of On, the ground with black people fighting again, know the colonial administration and anti-black midst especially what's going on with Garifuna communities across central? America. So that's what I was thinking about. That's what I had in mind when I, came up with this article and it was just kind of talk about it later too because it's kind of like this long history of exclusion in the region and the region and how people conceptualize Central America so I thought in order for us to. Even. Delve into what You, know black lives. Matter Movement Looks Central America certainly have to acknowledge. Black Communities and black histories in the region I. so that's kind of where I was getting at and I'm a fan of history off it's kind of like a title things together. Absolutely we just had a show last week on the Gutty Funez on Duras and in a large way they play a central role. Belize as well. So we'll get to them once again during the course of the conversation. But with that said, there are other groups that make Belize very complex as far as this community is concerned, there's some other groups that need to be recognized. So I wonder if you could also explain the complexity of the Afro Belizian community in believes because not every black person in Belize is necessarily a Gutty Fuda, their other complexities and needs to be addressed here. Correct. Yes for sure. And that's even including myself I'm not guarantee now I'm what you would consider creole. So depending on. The vantage point, but you look at central. America play believes etc. Gua. Even think accent complaints with endurance creole just like black. Identity of black population mixture of blackness feeding back to the enslavement of large populations in the business. So thinking about that identity in believes to historic. Black Group are black creoles. And the Afrin Vision is getting food and I say black correal's because it's. It's common to meet somebody blond-haired blue-eyed of like, who visually looks why to also call themselves. And it's also the language that they also speak in believe. So there's a lot of complexity there and fusion So I really like to say black creoles because also like the history of creoles and believe ties back to kind of that enslavement period. And of course. When I was there last full for feel work you have legal whole bunch of other. black groups that are that have been in believe for quite some time you have like a very Pan Caribbean. migration and group within believe. So you can meet somebody from Jamaica. You can meet somebody from Barbados Trinidad. So that's also present there. and then recently you have a lot of immigrants from. The continent diamond a few people from Nigeria I. Think someone someone from Ghana, and then of course, from Haiti as well. considering migration Haitians to central. So there's like different levels of that. But in terms of like historic, it's black KRILL and offering digits Garifuna and I do like to. Talk about them within the compass of affable believers because there has been like a mixture between two. It's not unusual to meet somebody with a creole mother and A. Father vice versa So it kind of intertwined throughout but the cultures are very distinct and that's important to note they have a different history different time line of you know. Experience within the country which kind of work to conceptualize how they're viewed within beliefs but I think that's very important to also considering language racial formations. So yeah.
Trump says he'll choose a woman to replace RBG
"Of President Trump in North Carolina are weighing in on what he should do about replacing Justice Ruth Bader Ginsburg on the Supreme Court after her death on Friday. I don't necessarily feel Donald Trump needs to pick a woman or a man. I feel like he needs to pick the person who's the most qualified conservatives. Khun finally take the Supreme Court. Mr. Trump held a rally last night and fed Phil's DBS is Steve Dorothy, with the latest Good night. Well, this President, Trump pledged to quickly fill her seat on the Supreme Court. I think it should be a woman because I actually like women, much more than I like men, I have to say Senate Majority Leader Mitch McConnell has promised to vote Democratic presidential nominee Joe Biden is expected to speak this afternoon on President Trump's plan to name a third justice to the U. S. Supreme Court. Democratic senator and former presidential candidate Amy Club, which our ways in telling CNN the on ly one. This close was when Abraham Lincoln was president, and he made the wise decision to allow the election to occur and then decide who would nominate and who he would nominate that happened.
Ginsburg's death sets up tense political fight over replacement
"A champion of women's rights and other causes, has died from complications related to metastatic pancreatic cancer. The high court made the sad announcement late yesterday. President Bill Clinton appointed Ginsberg to the bench in 1993, the first appointment by a Democrat in 26 years and just the second woman ever on the Supreme Court comas Tammy Matanza reports on the tributes coming in. It is a sad day for America, Losing a feminist icon and champion for civil rights and touching tributes have been pouring in across the feeds near Journey. Durkin just tweeting this a short time ago, saying Devastating, Ah pioneer who inspired so many particularly young girls. We must extend her legacy by continuing the fight for true equity for upholding the Constitution and for a country that lives up to its promise. Now, just a skins. Berg's death is just 45 days before the presidential election, which means the Supreme Court Hasn't open seat comma political analyst Ron Dots Our says the implications will be huge that he believes the process for her replacement should be a careful consideration. But I think the politics of it the way this lines up. It would be very, very risky for the GOP in the Senate to try to ram through A nominee before November, 3rd. Now I put the emphasis on November 3rd because all bets are off after the elections. Let's go. Most damning Matanza reporting. The great wheel was dark last
Dwayne 'The Rock' Johnson's front gate wouldn't open, so he ripped it off
"And in real life. They don't call him the rock for nothing. I've been waiting for for this this moment. moment. Dwayne Dwayne Johnson Johnson used used those those bulging bulging muscles muscles that that helped helped make make him him a a movie movie star. star. To To tear tear down down the the electronic electronic gate gate in in front front of of his his house house after after a a power power outage outage rendered rendered it it put put in in an an instagram instagram post. post. Rock Rock says says he he was was a a surprised surprised as as anyone. anyone. He He was was able able to to sever sever the the steel steel hydraulics hydraulics and and ripped ripped the the gate gate from from a a surrounding surrounding brick brick Feds, Feds, not a bad plug for his upcoming DC superhero movie Black. He was quick to mention Pepper Pepper Rodriguez, Rodriguez,
"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 Leaves Interest Rates Unchanged
"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 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 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 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. In his article that he wrote a kind of saying that the Fed's commitment to not raise rates wasn't strong enough 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 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 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 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
Here are the winners of the 2020 Ig Nobel Prizes to make you laugh, then think
"The Twenty Twenty Ige Nobel Prize winners were announced last night the ignoble prizes to achievements that. First make people laugh. Then make them think the prizes are intended to celebrate the unusual honor the imaginative and spur people's interest in science medicine and technology and quote. A. Common Misconception about the ignoble prizes is that they're like the razzies you know making fun of things for being bad. But as they say on their website quote, we're honoring achievements that make people laugh and then think good achievements can also be odd funny and even absurd. So combat achievements a lot of good science gets attacked because of its absurdity and a lot of bad science gets revered despite its absurdity and quote. This year, the award ceremony was held only online but fun fact for you the ceremony while always in person prior to this year has also been streamed online every single year since nineteen, ninety, five making it. One of the very first events to be streamed live online. Improbable research who runs the prize thinks that it may have been the first ever event streamed live online was. Not a music concert, which is pretty cool and now without further ADO, here's a rundown of the twenty twenty winners, the Acoustics. Prize. went to a multinational team that basically had an alligator inhale a bunch of helium with the high pitched effect you'd anticipate so that they could study how alligators communicate the psychology prize went to a North American, team who came up with a method to. Identify, narcissists based on their eyebrow movements. The Peace Prize actually went to the governments, of India and Pakistan. For quote, having their diplomats surreptitiously ring each other's doorbells in the middle of the night and then run away before anyone had a chance to answer the door and quotes and next up the physics prize went to a team who wanted to see what happens to an earthworm. When you vibrate at high frequencies, some of these I think make a lot more sense view actually dive into the paper ignoble does a really good job of describing them in the weirdest most intriguing ways possible. The Economics Prize was awarded to the team who tried to quote quantify the relationship between different countries, national income inequality, and the average amount of mouth to mouth kissing and quote. The management. Prize went to a team of professional Chinese hitmen who conducted a hit by having. So many of them pay the other one to do it with less and less money each time that eventually no one was murdered. The. Prize was awarded to Richard vetter for collecting evidence that Entomologists Aka people who study insects or indeed scared of spiders. Are Not Insects. Now, the medicine prize went to a Dutch and Belgian team for diagnosing missile phony A-. And this is one I remember seen in the headlines about when the research was published because I super identify with it missile phony is Stress at hearing other people make chewing sounds end quotes. The materials science prize sounds completely bazaar and pointless until you understand that this British and American team are archaeologists who were trying to prove something about an artifact that had been found. They won the prize for quote showing that knives manufactured from frozen human feces do not work well and quotes. And finally the Second Prize winner of the year to be more ripped from the headlines than based on academic papers. The Medical Education Prize was awarded to Jay Your Bolsonaro of Brazil. Boris. Johnson of the United Kingdom. Never Injure mody of India Andrea Manual Lopez Obrador of Mexico. Alexander Lukashenko of Belarus, Donald Trump of the USA or John of Turkey Vladimir Putin of Russia and govern Guli Berdymukhamedov of Turkmenistan. For quote using the covid nineteen viral pandemic to teach the world that politicians can have a more immediate effect on life and death. Then scientists and doctors can end quote. Wow. Yeah I mean scientists are pretty fed up. You might have seen that scientific American actually endorsed a candidate for president for the very first time in their one hundred and seventy five year history because among other points. Trump's rejection of evidence in public health measures have been catastrophic in the US and quotes
The Emmy Awards will be 'live, live, live,' and expect things to go wrong
"And the Emmys Air Sunday night on ABC, the first major awards show during the pandemic, Jimmy Kimmel is hosting. So what could go wrong? Executive producer Iain Stewart says any number of things the good thing about that is that we've got Jimmy Kimmel, who loves live TV and loves Chaos, Live T. I think I think he's actually hoping things do go wrong To tell you the truth. It makes my sweat makes my palms sweat. Just thinking about it. The biggest hurdle will be having feeds from all the nominees Holmes coming in live on Sunday night, which Stuart says could be a logistical
Thailand braces for large anti-government rally
"Thailand is bracing for a large anti-government protests tomorrow. The Roddy. Shuttled to take place at university, which was the site of a student massacre decades ago and comes after weeks of demonstration's. The best attended was in the middle of August. When more than ten thousand people marched in Bangkok calling for Political Change, PA me-meeting learn how Students have no choice. We can only come out. We don't want to grow up and have kids ask us when the country was facing injustice for you doing. The protests started off largely as student movements. Different groups of young people around Johnson is the economist Southeast Asia correspondent. We've seen them spread actually in into high schools, and now they seem to be gaining traction among a large segment of the population. What can we expect from tomorrow's protests? We've got two different versions of what's going to happen tomorrow. The protesters' who are organizing the rallies. At Thomas, university anticipate fourteen thousand people coming the authorities are trying to poo poo that. And say you know perhaps it'll be half as many will show up even survey not taking any chances. There were also thousands of police who are being marshalled to keep the event in order, and we've just had actually the deputy minister who is extremely close ally of the prime minister is going to be running the operations into that sexually monitoring the rally. Marta who all these protesters and what's the back story how did they get started? There's been frustration building in Thailand for a number of years the current prime minister and many of his closest henchman seized power in a coup in two thousand fourteen and for while they promised that that would be elections but there wasn't actually one until last year and even when that election occurred the current time constitution ensure that. It wasn't really a level playing field for opposition parties who ran against pro-military potties and others who eventually came together in a coalition and one so that Prime Minister Pray Challenge Child at full McCoy leader could stay in power. So many ties were very annoyed that they had the liberties. Ko they waited many years for an election and then it wasn't savvy the first place and then on top of all that. A particularly, Popular Party led by a very charismatic young politician businessman who basic he got fed up with state of Thailand and decided to become involved in politics. The long. The short of it is that the Ponti Future forward was dissolved earlier this year in February, and that was when we first started to see some flashbulbs few street protests and anger starting to build about the current government. What the protesters want is, is it just the reinstatement of the party or something else I? Think the core protest is believed that this is all moved above. And beyond future forward, a lot of the platform and policies that future forward advocating for things that many of the press testers would like to advance in Thailand more freedoms. An end to harassing opposition activists to protest is also want to see parliament dissolved the crucially they know that dissolving parliament might not do much good until there is a new constitution of the protesters unified what they want. So. That is one particularly contentious issue in all of this, and that's the fact that some of the boldest protesters' have called for reform of the monarchy. The monarchy in Thailand is deeply revered. It's Tabu to to criticize the institution and indeed a less. Law provides up to fifteen years in prison for anyone to be in badly insulting the monarch the current monarch. King. Vajiralongkorn or Rama, the tents took over from his extremely popular father who died in two thousand sixteen and it's been a bumpy road since then as a result for the very first time pretesting and are openly criticizing some of the things that King Vigia along his dumb in particular, they are unhappy with the way in which he has poked crown assets in his own name and they are also unhappy about the fact that he has taken sutton important military units under his pulse no command and a lot of those stationed importantly right in Bangkok so how significant these protests the government. The fact that these protests have been growing since the middle of July slowly, but steadily ease programmatic and the longer they go on the bigger the headache this becomes the government, the students specific and not going away. They're not intimidated by the dozens of people who've been arrested for participating all leading, Maranda? What are the army and the government doing about this? So far it seems to have been a case of wait-and-see. We've seen a few dozen protesters arrested particularly the leadership, but we haven't seen any really tough crackdown and given Thailand's. Of cracking down on student protests, quite bloody manner, and in particular here I'm thinking of events in the nineteen seventies. One Fair on love People's minds is. What happens when the establishment runs short on patients with all of this, it's difficult to say precisely what will happen but the chances all dramatic intervention I think. NEVA'S ERA in Thailand Verandah. Thank you. Thanks so much.
"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 Marketplace Morning Report with David Brancaccio
"fed" Discussed on WSJ What's News
"The Federal Reserve's policy meetings are a barometer on the state of the economy at virtual press conference this afternoon Fed Chair Jerome Powell, said he's not expecting to move the needle on near zero interest rates for at least a year, and a half the extent of the downturn, and the pace of recovery remain extraordinarily uncertain and will depend in large part on our success in containing the virus. We all want to get back to normal, but a full recovery is unlikely to occur until people are confident that it is safe to re engage in a broad range of activities. Joining me now with more analysis is Wall Street Journal chief. Economics commentator Greg Hip. Greg. It was expected that the would keep rates steady and fed chair. Jerome Powell said as much that the Fed will not increase rates through the year twenty twenty two. Is that longer than we had expected? I think that's about as what was expected. Mean it's more or less than markets had not expected any rate increase for the next year or two, perhaps even more important was that the Fed chairman said they're going to be continuing to buy treasury bonds at a pace of about twenty billion dollars a week for the foreseeable future they had not actually given much guidance in before about when that would stop so by continuing to buy treasury bonds, they keep long term interest rates low that helps keep things like mortgage rates low, and as additional support to the economy and observers were keeping a eye on the Fed's projections for the rest of the year. Greg, what are the major takeaways there? Well, the feds forecast is very similar to many private sector forecasts are expecting the economy to shrink six and a half percent this year, and only partially rebound next year to five percent, and you see the same thing in their unemployment rate projections, the unemployment rate falling from over thirteen percent now to nine point three percent at the end of this year and six point five percent at the end. End of next year now on the one hand that's positive because we're making progress, but I think it still represents a pretty significant reversal. Disappointment compared. We were just a few months ago when the unemployment rate was the lowest since nineteen sixties at around three and a half percent Powell has repeatedly said the Fed will use every tool at its disposal to help the recovery how those tools been working? While lowering interest rates, zero had the desired effect of bringing down other interest rates such as on mortgage rates, their purchases of bonds of help, calm markets down. You don't see the same degree volatility, and then there are other plans to perhaps by corporate bonds and other securities and lend to private companies, those having progress nearly as far in fact, some of the programs, even off the ground yet, but the mere fact. Fact that investors know those programs are available seems to have imparted certain degree of stability, but chair Powell is clear today that a lot of the work that needs to be done and getting the economy fully back on its feet is in the domain of Congress in the in in the White House Greg. The challenges ahead are many and I. Think Average Americans are wondering just how long the recovery will take. Well it probably depends on how you define recovery, if defend recovery as simply getting better well, things are already getting better if you define recovery as unemployment getting back to where it was same February, that could several years more. I think one of the key takeaways of chair Powell's remarks today was that we're in a period of enormous uncertainty. Nobody expected the employment report for May to show an increase in jobs, so that means that we should be prepared for surprises both active and positive surprises in the months ahead, and not be have our minds to made up about just how strong and weak recovery will be. That's wall journal Chief Economics Commentator Greg Greg.
"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
"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..