Transcripts For CSPAN2 Key Capitol Hill Hearings 20240622

The availability of drones and the use of drones, and we are scouring our authorities to see what, if anything, we can do as an agency on and well hear more to say about that in the future weeks and months. Are you hoping to meet the september target date . I think hopefully we will meet that deadline or come real close to it, in terms of getting the rule over to onb and hopefully soon thereafter having the rule out there as final. Heres the last one from me. A lot of talk this week about car hacking as result of wired magazine report on the Entertainment Systems in jeep cherokees and a chrysler products where you can get control of steering, brakes and transmission. I want to know your view of the proposed legislation and also where what the department is doing on the subject. Hacking. Look, this is a place where the government and the private sector have to be working very closely together. And we have urged the out toy all Auto Industry to start a roundtable of sorts to focus on issues of sign per security. A lot of the technologies are proprietary in some respect but there are common issues the industry has to deal with, and we found another industry these types of collaborations are useful and we offered to extent the resources of our department to help that work. So we feel like this is an area where the government and the private industry are going to have to step up in a big way but we cant do it by ourself. In the meantime, for the typical driver, how concerned should they be about hacking . This is its an issue. I think as we look forward into the future of transportation, well also see even more of a push towards technology with connected vehicles and Driverless Cars and things like that and so the time to get on this is right now and as i say we will push as hard as we can within government, but as industry develops this technology theres going be no substitute for publicprivate collaboration to ensure the security of our vehicles is airtight. From the ap. Yes. Actually kind of have two questions. One was i was hoping you could elaborate a little more on the price gouging investigation that you have opened. You said im sorry how many what is your evidence . Just the northeast corridor between washington and boston, and then the second part with the highway bill question, and i know youre still drilling down on that bill, but republicans have made a lot of tweaks to it in the senate, and i wonder if you actually got a bill like this do you think its something how would you feel about it . Would you think its an advancement, step forward or not . Okay. On the investigation its still very early. We Just Launched it today. But there are four airlines that were looking at. Ive identified them already. Those airlines have allegedly raised fees beyond what you would ordinarily expect in the northeast corridor at a time when the amtrak line was shut down. And our investigation our inquiry, is focused on getting to the bottom of whether there were unfair practices involved in setting prices at that time. On the highway side, i think its fair to say that as introduced on tuesday a very mixed bag. Again, i want to give credit to folks on both sides who have been trying to figure this out. This is not easy. If it were easy we wouldnt have had 33 shortterm measures in the last seven or eight years. It will be a decade since we had the last sixyear transportation bill. But i think some of the glaring problems with it had to do with the safety provisions, and i know theyre working to try to accommodate some of the concerns there, and well just have to see how far theyre able to get on that. I do think this country is hungry for robust transportation and the problems of congestion that have gotten worse over the last several years, the potholes in the roads, the bridges that need to be repaired. I could go on and on about the problems. And i think one of the questions is does this bill help us solve those problems in a substantial way . And we will continue reviewing as the Senate Continues the very fluid work theyre doing on this legislation, and once they have settled down issue think youll fine us settling down into a position. Mark jansen from usa today. Thank you for coming. Can you say anything about what clues, what hints about the airlines actions raised the suspicions to start the investigation . Do you monitor prices . What sparked the investigation . Well, there were a flurry of concerns raised in the wake of the accident in philadelphia. We had been asked to consider an investigation by senator murphy from connecticut and were doing our Due Diligence through this investigation to determine whether in fact there were unfair practices involved. And the other airline question, how soon might we see scheduleed flights to cuba . Thats actually we play a role in that, but that also involves the state department and commerce department. Youre aware that secretary kerry is planning to visit cuba in august. And my guess is that as we continue moving forward youll see those flights resuming. At some point in the very near future but i dont have a get to give you today. Im from the dallas morning news. A quick followup on the investigation. On the investigation it strikes me as probably legal if they just rose their prices raised their prices in response to a sudden demand, but is what youre concerned about them colluding to do that in an illegal way . And is it your investigation or the doj do they get involved . The department of justice focuses on criminal inquiries and what were doing bears no relationship to what the department of justice is doing. We are looking at this from a consumer standpoint, and yes in fact there is natural shift natural shifts in pricing depending on what demand is. The question really is, was this beyond the pale, and we will find that out in the course of this investigation. Well go next to heather from politico. End of the table. I want to follow up sorry go ahead. In my work in texas your preferred sees senior and folks from them Rail Administration came to talk about the excitement over highspeed rail in the Obama Administration. Texas at that time had an opinion that there was no role for government so didnt get any of the big money out of stimulus. So six seven years later its moving forward with the private sector rail, and most of the places where the federal government has had initial through supported highspeed rail has ethe rejects money or come into slowdowns. I wonder how big of a pro priorityes that for the Obama Administration is . There any regret the way it was handled Going Forward . Trying to get a sense where you see the nations highspeed rail. You pick any big project that has been done in this country and there was opposition to it at the beginning. I dont care what youre talking about. In the new york subway system, the brooklyn bridge. You name any big the going bridge. You name any big project that has happened in this country. There have been choruses against the projects initially. And i dont think highspeed rail is different in that respect. But we are seeing highspeed rail gaining traction in this country. The california project broke ground in january. Even florida the state that rejected the highspeed rail money back in the recovery act days is working on a highspeed rail project connecting orlando and miami and the work that is being done in texas to do highspeed between houston and dallas. I mean, how its done is less important than that its done, and i think youre seeing folks realizing the president was right, we need to connect our major cities in this country give people a different choice to get from a to b and youre starting to see it happen. Mr. Secretary, has the administration been counseling senators over the last week to vote against this mcconnell boxer plan, and what happens when we if it gets to be dem 18th and nicer no tax reform deal to bail out the trust fund . The short answer to your fit question is, no. Were not in a position to be either for or against the whole bill. Theres certainly portions of it woe find very troubling we find very troubling and we have been communicating those concerns but because the bill is in such fluid state there hasnt been a settling down of a position because it continues to be a moving target. Your second question . What happens if we get to decembersel and and theres no tax overhaul to bail out the trust fund. Well, this is a perpetual question we have been asking ourselves for the last 33 extensions. And at some point the music does have to stop, and we need to get on with building the country and i think the good news here is that youre seeing people struggling in earnest with how to get there. I just hope that we dont keep perpetuates the problems of you know, looking more or just at what we think we can do, and not looking squarely at what the country needs us to do, because those can be two different things. From reuters. The end of the month deadline on he highway bill, does the department do any recalculation of revenues on the chance that you could actually go a bit longer if Congress Fails to send the president a bill . And are there any steps contingency steps the department is taking in case that doesnt happen . Well, look, if so when we think about the impact of the highway clips its not a small impact. You have internal the d. O. T. , probably 4,000 of our employees that would be furloughed. They range from folks on the federal highway administration, who do permitting work, to ntsa to federal motor care yore. Those are primarily the agencies that would be impacted. External to d. O. T. We sent out letters to all the states and territories, explaining what we would do in terms of Cash Management in the event we started to go below the prudent balance, which is 4 billion in the highway account. And essentially we would apportion to those states percentages of the remaining revenue until we ran out of it. On top of that, lets just be frank. States have already been adjusting their ambitions to the federal environment and we have six states that have reduced projects, 2 billion worth of projects already and probably more states we dont know about. So all this basically comes down to jobs. It comes down to the fact that our countrys infrastructure continues to deteriorate and not only for me, and our president , but for future people who sit in the chair i sit in, and he sits in, im very concerned that folks in these positions in the future are going to be managing a declining system and thats not in the interests of the American People. So thats a little bit of what the impact would be. Any recalculations of revenues . The last report i saw basically stuck to the same time frame, which is that we will fall below the prudent balance sometime in the early part of august if they dont find a way to move forward and again that will be a bad day for many states and many communities across the country. From the los angeles times. Thank you mr. Secretary again, on the investigation that youre announcing this morning realizing these things take time. Do you have any sense of the timeline and how involved it might be . And then a question on the bill use we splittings in requests from each of the four airline is mentioned. And we sent its i think the letter went out yesterday today. Its going out today. And we expect within a reasonable time that well get that information book, and well go where the information takes us. But we expect the information to be sent back to us promptly, and hopefully we can close this out as quickly as possible. Dont have a timeline. Can you say what youre asking them for . I can get you a copy of the letters. And can you say hows ms. Stick you are there will be anything other than simple play stopgap measure to keep the highway fund going past july 31st . And also, frankly to the end of the year . Do you have any real optimism there would be anything other than just another stopgap measure at the end of december . I think the American People are going to increasingly demand that congress solve this problem and really solve it. Not paper over it. And thats because ive just been to so many places around the country where the traffic problems are getting worse. The conditions on the road are getting worse. And people are just seeing no way out. And increasingly people are starting to draw the line or follow the bread crumbs back to washington and we just cant keep doing it. So im optimistic because i see people on both sides continuing to work at this, and theyre working at it earnestly. Threat not to say that what is being discussed in the senate doesnt have problem because it does. Well just have to keep watching and it keep sharing our concerns on a memberbymember basis and hopefully the end result, either now or at the end of the year, will be something good. Jeff, from bloomberg. Yes. So in all of youre talks through the country you made clear in your tenure that fixing this longterm highway funding problem has been one of your top priorities. If the Senate Receives on its planned will have a sixyear bill with three years of funding. This will take this issue beyond the Obama Administration. So im just interested in your thoughts on that, and whether there are some real priorities you hope to address that you wont have the opportunity to do so . Well, look, again hard to know whether were in the second inning or the eight inning. But ill sleep peacefully at night knowing that ive done the very best job i can do of pointing the country in the direction we needs to go and i think the president has said repeatedly that its time nor country to move forward. Its time to get rid of the stopgaps and begin focusing on the long term and the goals as a country. But under our Constitutional System Congress has to take this up and do something about it. And as i said before, the fact theyre wrestling in earnest with this issue at all is a very different place than where we were two months ago or ten months before that, or you follow the logic. So i think as long as people are wrestling with this, theres a chance it could work out well for the American People and thats just what we have to believe. Mr. Secretary one of the parts of the bill threshing senate bill under discussion, is the percentage of infrastructure money that goes to mass transit and there was a proposal in the initial bill to reduce the percentage. How important is to its maintain it and what would the implications be for mass transit if it is reduced. Let me answer this way. We did this survey of the nations Transportation System beyond traffic a few months ago. We put the draft out and one of the startling things about beyond traffic is it points out that were going to grow by 70 million people. So well have population increases, but not just population increases. More concentration around metro areas. So pick los angeles, for instance. Can you build more highways in los angeles . No. You might be able to expand the lanes in some places, but thats not going to get you to nirvana either and so the need for transit is actually increasing in the country. Our grow america act had a 70plus percent increase for transit, recognizing the need for it as the country continues to grow. So no, i definitely dont think the percentage ought to be going down. If anything it should be going up but i know that there are folks in the senate who are very concerned about this and are pushing to at least keep its level. Let me tell you where we are timewise. 28 minutes to go well go flexion to from tax notes and david sheper sound, and stephanie from bna and end with Bernie Becker from the hill. Youre up. So you mentioned that the highway bill is a moving target. Are there any provisions or amendmentses that the white house would want to include in the Current Senate bill to get this forward . Well, i think xm bank for sure. Thats something that the white house is very interested in. On at the transportation front there are number of Safety Measures that were still concerned about and for instance if we recall a car because of some defect that could endanger someone who is using the car and you go to a used car lot to buy a car even if its been subject to recall right now you could buy that car and it wouldnt have to be fixed. And we think thats a loophole that needs to be closed. There are also pieces of legislation we wish the senate would consider, like giving ntsa imminent hazard authority. We were criticized last year for having too cozy a relationship with industry. But the reality is that when a recall occurs, if the company that has been recalled disagrees with our assessment, our recourse is to go to courts spend years trying to ritz gait the issue while dangerous stuff is on the streets. The alternative is to develop some kind of settlement with the automaker or the oem and usually we have been able to get favorable results that way but if Congress Wants us to have more teeth give us the tools so that we can fight those battles directly and these are the kinds of things we have proposed previously and it would be nice for those issues to be addressed through this legislation. David shepardson. Do you [inaudible] question. We have serious concerns about the safety provisions in the bill and its not just the ones i brought up. And i think were just waiting to see where they land, as this goes through a very fluid process over the next several days. So im not prepared to say it is or isnt a dealbreaker or that portions of it or or not dealbreakers. Right now were trying to see where the senate lands and to try to play a constructive role in helping congress get to yes on something that is vitally important to the american public. A question about the hacking earlier. Are you satisfied that Fiat Chrysler has not recalled these vehicles instead of just offering this volunteer tear Software Patch . I am going to decline to comment for now on a specific automaker, but theres probably something coming on that. Also at Fiat Chrysler, how close are you to a consents order or result to this public hearing and the 20out recalls nftsa has been looking at. I urge you to just give us some time. Were working very hard to get these issues closed out. But i dont have any news for you this morning. I. John mccann from the journal back in the cheap seats. Could you please explain exactly how your Authority Works in the area of price gouging . In other words what is the remedy you have do you go to court, impose a fine . How much money could we be talking about . What happens . Let me look, our authorities are found in 49usc417. 12, and provides we may investigate and decide whether an air carrier has been or is engaged in an unfair and or deceptive trade practice in air transportation, and we also have the authority to prohibit such conduct. Now, the extent to which we have the able to levy fines or issue recommend remedies, i would actually need have our counsels office reach back out to you and give you further clarification on the breadth of our authorities, but if we find is happening, we can stop it for sure and ill get you more information on whatever remedies may be available. Welcome back. Just wanted to let susan or john tell people what is coming. A letter you talked debt youre investigating whether this practice is continuing . In other words, it could be going on right now . In very perhaps but i think primarily were looking at the period of time following the accident in philadelphia, and what happened immediately thereafter. Francine from the monitor. A technical question on this case. You mentioned the doj the department of justice. Are they actually looking at criminal charges . Did you mean to say that . They are investigating, and i think thats been publicly disclosed previously. But beyond what it is theyre finding or looking for that is a whole Different Department and id have to defer to hi colleague, Loretta Lynch on that. My real question is, if you look at the two approaches to highway funding in both the house and the senate, the house idea is lets just do a quick patch and then work really, really hard to alter tax reform to Alter International corporate taxes and find a big fix, and the senate approach is, no lets grab from here and there and pay for this for three years. Which approach do you like . Well, the administration has said that because we believe there is a purpose to extending to the end of the year, i. E. , theres a reasonable chance that the stars could align for the some variation of the Business Tax Reform proposal we put in our bill, that the jury is out on the current bill. And so were still waiting on the senate to settle down on a final proposal, and were evaluating the ideas that were put forward on tuesday but were also concerned about some of the policy provisions in the bill as it was proposed on tuesday. I know the senate is working to try to clean some of that up, and until we see a final version of it, its going to be hard for us to articulate a solid position on. Stephanie beastly beasley from bloomberg. I know the white house endures the fivemonth extension that passed out of the house. Has not done into yet for the senate bill do you think the administration is more likely to support an extension if it leads to a longterm bill that is fully funded, over the senate bill which right now just has three years of funding and not the full six years. Variation on the same question. Theres a lot going on right now. Including the fact that we as in the administration are opposed to continuing sequestration and thats a big philosophical fight that could emerge over the next several weeks. And every time there is some effort to use a source that could help on that issue used for some other purpose including transportation. It creates a bit of a challenge because ultimately theres a lot of government that needs to open back up and get going again. So theres just a lot thats in the chamber right now and what i would say is that were looking carefully at the Senate Proposal. Were taking the proposal seriously, as we said we would for month. We have been saying Congress Just tell us what you want to try to do, and well try to play a constructive role. So im not here to shoot it down whole hog as we say in north carolina. Im here to say that we have some problems, understand theyre trying to work through some of them, and well see where they land on the senate bill. We have supported the house package because the house package is purposeful to the extent its trying to get to us a place where we can get a longer term bill done, using a Revenue Source that doesnt put us in a compromising position on this other issues. Bernie becker from the hill, on the other end. Im going to ask another variation of that question. Okay, great. Are you saying that the Senate Package would be there now and be there at the end of the year, and plane the only time that the time would be right for tax reform to pay for this would be there is fall . In a sense thats saying your preferring the house measure. What im saying is that the proposal we put forward two years ago and a revised version this year, contains programs from Business Tax Reform, and we still think that is the best way to solve the problem for transportation over six years. The political reality as we have learned from folks at least on the outside and perhaps even on the senate, is that at best the ripe window for that tax reform discussion is probably the end of the year. So that is in fact why the white house has supported the fivemonth extension to this point. What the senate is now doing is putting forth an idea to try to address the transportation issue now, and again this bill, thousand pages it was dropped on tuesday . They are furiously working to address concerns that members of the senate have raised about it, and we dont have a final version of that to review right now. So i cant tell you right now that were going to support or not support it. What i can tell you is were taking it seriously and trying to do what we said wed do, which is to consider proposals that came out of congress. Fair to say you would accept the Senate Proposal, maybe theres chance you would accept the Senate Proposal, but in awould you would prefer the Senate Proposal verse the house version . I think we are just going to have to see if dont think i have a way of answering the question that youre asking with absolute precision. What we want is to see the Transportation System in this country be as strong as possible and the policy that is contained in this bill is just as important as the length and the amount of growth in it, and we just have to look at the combination of those things once they settle down and figure out whether we can live with it or not. Before we do seconds round i want to make sure theres not somebody who want one. If not second round . Michael from dallas. Back to this investigation. Obviously senator murphy asked you to look into it. What else did you look at the pricing . Were there other pieces of evidence . Why these four airlines are the only ones that fly there or did you see something in their prices that made them stand out . Well, we had sufficient information to be concerned about it. I will just put it that way. And part of what an investigation is, is drilling down into what the facts are and trying to understand whether theyre there, and in the coming weeks and months well know. Let me ask you a question about laser attacks on planes. As you know there was a five planes targeted in new york earlier this week, and seems that efforts to actually nab the people who are dying this kind of stuff arent very successful. Is that misapprehension on my part or a problem that you really dont have a way to solve at the moment, the laser problem . Is it earlier in the previous question you asked i mentioned we need look at the consumer side of some of this, and what i mean by that is, if somebody is purchasing a product that could be dangerous like a drone that can go 2500 feet in the air right now we dont have a great mechanism totrack and find out who the owner is. And we probably need one. In fact ill take probably out of it. We need one. But finding out who has the authorities to do Something Like that is just the work that were undertaking now. So id say the same thing about the lasers. Were in an era where there are lot of advantages to technology, and a lot of great things that can happen as a result of having these Unmanned Aircraft in the air space. But its got to be done safely, and were going to look at every single thing we can do to make sure that our Enforcement Mechanisms have teeth to them, but part of that is being able to follow the bread crumbs back to who is using it. Anybody who hasnt had one . Otherwise we might make a record decision here and let you out early. My goodness. That would be clean living on your part. There you go. Ap. So, one of those provisions, those safety provisions in the transportation bill is a doubling of the maximum fine against an automaker who as e egregiously but theres a caveat you have to do a rulemaking that goes into the fines. I know you asked for 300 million, some democrats think it should be no cap at all. What do you think of this 70 million . Its not what we wanted, clearly. Theres a little austin powers element to it. And but its better than the status quo. And well just have to see where the senate lands on it. I continue urge to them toward the number in our bill, but well see. Helen ferguson who has not had one from cq. Im just filling in. Im not the transportation reporter. You have worked very hard not to take a position on either the house or the senate approach. Or to talk about some of the evolving pieces in the senate bill. And im going to take another stab at a question somebody asked before. Is there anything that the senate could put in that bill that would make it totally unacceptable to the administration . Well we have previously expressed support for the house measure, so i want to make that clear. Is that a model thats going its fivemonth extension. And the only i think the carrot that made that acceptable to us was because we were advised there was more time needed to try to get the longer term measure done. On the Senate Package, i think there are a host of issues. The payfors themes are bitter pills for some stakeholders, including many in the labor community, for instance, and others. That is under review and something were trying to look at. The policy provisions and safety provisions other parts of the bill that, again is not just us its also members of the Senate Raising concerns about these things, and i know theyre actively negotiating out but we just havent seen the results of that negotiation yet. Its impossible for me to say where we would actually come out on this bill. But again were trying to take it seriously and were trying to move things in a constructive direction, but well have to see. A short followup question. You mentioned austin powers a little bit ago in response to another question. On the house bill where theyre saying well do five months and then have this grand solution. Given how congress functions and particularly some of the ups and downs that the house has gone through wouldnt that be a bet like if you bet on that bill and that approach, lying going to the casinos because you have no idea the odds of the house being able to come together on something and then to sell it to the senate are very high. Well, arent very high. Well, one of the im trying to figure out how to do that. The guy who is really holding the cards on the house side im trying to workive analogy is paul ryan, and he has made some very strong public statements that are supportive of the type of payto we have been propose the payfor we have been proposing all along. And one has to assume that he has the backing of his litership and of other members of the house, and if youre sizing this issue up, or really any issue the house is where the you have a tougher time on any generic issue in the house than the senate. So the feeling is if we can get the house positioned to move, we can really get something done. That doesnt mean it couldnt happen that way but were taking that seriously. But until it settled down into something we feel like is congealed, were going to continue watching and go from there. Last question, bart. I think i can get a crisp answer. Do you have anything new to announce on either the gulf carrier inquiry the more norwegian no. Nice to see you again. Thank you. [inaudible conversations] nod conversation considered underrated by many first lady historians, Caroline Harrison want as accomplished artist who took intouchdown painting and carried that interest the white house establishing its china collection. She has wad interested in womens universities and helped raise funds for Johns Hopkins university on the condition its would admit women and. She died in the white house from tuberculosis. Caroline harrison, this sunday, on cspans original series, first laidies influence and image. Examining the public and private lives of the women who killed the position of fir laidy and their influence on the presidency from Martha Washington to Michelle Obama sundays at 8 00 p. M. Eastern on American History tv on cspan3. Cspan 2 brings you the best access to congress. Live debate and vote from the senate floor, hearings and Public Policy events and every weekend its booktv with nonfiction books and authors. Live coverage of book festivals from around the country and a behind the scenes look at the publishing industry. Choose cspan, the best access to congress and nonfiction books. White house economic advicer Jason Fuhrman talked about Economic Statistics and how to interpret neck Economic Data. This is an hour. Thank you everybody. Thanks for coming out today on a beautiful washington summer friday afternoon. My name is jim kepler, Senior Vice President for policy at third way. Our goal today for those in the room and those watching at home, is to make us better consumers of Economic News and economic reports, in essence to be our on wonk blog, to help us achieve that mission we are fortunate to have with us jason furman, jason early in his first term, president obama said of peter he made being a nerd could go. Jason is the chairman of the president s council of economic advisers. Has been serving president obama since day one as a senior economic adviser. He helps steer the nation out of the Great Recession and also served under president bill clinton which mean ss that between the two president s jason is responsible, as least partly, for 30 million private sector jobs. He has a ph. D from harvard a long pedigree of books and articles on economic. The father of three and a brand flu father, three weeks now of his son felix and also the subject last year of the best washington Washington Post profile if a head. He can juggle six flaming torches at once. Number two he the unsuccessfully argued to his wife that chopping wood failed a comparative economic advantages benefits test, and he is far less successful than his College Freshman roommate, matt damon. So with that, jason, thank you for joining us today. Jason is going to lead off with a presentation and then ill ask questions, then youll ask questions. So jason help us make us better economic consumers. Great. Tim, thank you so much for organizing this, thanks for everyone here in the room, and for the people watching this at home. Im going to take you through some slides that have ten tips about pretty much boils down to one really important tip that ill be giving you and this is a set of slides which are of interest to you later this afternoon theyll be up on the web site of the council of economic advisers, just google the council of economic advisers look for our speeches, there is will be up there. The presentation im going to give you. In terms of Economic Data, i have been following Economic Data carefully for the last 20 years. And it began when i worked as a star economist at the council of economic advisers in 1996 and one of the great things about the council of economic advisers is were responsible for conveying all of the Economic Data to the president. So the statistical agencies will give us the statistics a day in advance, just for us, and we spend a couple hours and analyze them and put that in a memo which goes to the president the evening before the data he can understand what is happening in the economy. For particular significant releases i can like the jobs numbers, which ill spend time on today and often gdp well brief him on the president in person as well. We also share the data with the secretary of the treasury and the chair of the Federal Reserve to make sure that they have the information they need to understand what is going to be happening the next day in market and the economy. What is great about this, is it gives you a real opportunity to think hard. But you also think without the noise of everyone else. Anyone who gets the data, the jobs numbers gdp they come out another 8 30 a. M. And instantly tons of tweets, tons of analysis tons of peoples opinion and thats great and i recommend looking at that and aggregating it. But theres something to just locking yourself in a room and trying to digest it yourself, unbiased, uninterrupted by the other people that are taking a look another the data, too and then you test what you think against it, and sometimes you found things other people didnt. Sometimes the wisdom of crowds comes up with an insight that you wouldnt have had. The biggest tip i have, and its underlying youll see a pattern is to never get too exorcized and two excited about any one piece of Economic Data. The economy is a big complicated thing. It bounces around loot from month to month and quarter to quarter. Any given statistic we have only captures one aspect of the economy. It doesnt capture the entire economy. And the statistics we have are imperfect. They depend on limited samples that have sampling error. They depend on complicated algorithms, people spend more on consumer goods, dunce mean thecoma grew a lot. It means christmas happened in december. So theres statistical errors, seasonal adjustment errors, parts of the economy and then just longer term trends. So really everything i just said boils down to theres one bias i see in the newspapers, the newspaper commentary tends to be really good and really informative and i learn a lot but the only thing i bias i would say it harks its tens to get too excited. Oh a great month. The economy is zooming ahead. Oh this month was terrible. Must be collapsing. Oh this month we cant tell whats going on, and the truth is sometimes the economy does turn on a dime and you want to be acontinue testify to that and looking for the data, but more often than not trends continue, and its better to look at a lot of peoples data and look at it over longer period of time. So thats the big metta piece of advice i have here. Let me now go through a number of specific ways that this manifests itself and specific examples. The the course of this, tell you some of the numbers that i most like to look at. Not just in the jobs report but in gdp and Economic Data. More generally. So the first thing is, some numbers bounce around a lot more than other numbers. Every month we have two different versions of the number of jobs added to the economy. One is the number of job bz added by employers. The other is the number of people whose employment went up or down. The blue one is what employers tell the bureau of labor statistics. The red line is what individuals tell the bureau of labor statistics. Theres some conceptual differences in terms of people who are selfemployed or multiple job holders but for most part the two numbers should be the same. This red one bounced around all over the place inch october last year it said that employment went up by 800,000. You would have thought that was a phenomenal month and then this march you would have thought the economy was collapsing. Unemployment went down by 500,000. Both of those months, if you thought either things you would be wrong and you would have have been wrong because youre relying on a survey that samples 60,000 households and has a decent amount of error involved in it. The reason that me markets and the newspapers concentrate 0 on what is called the establishment number or the Payroll Survey is because there youre surveying nearly 600,000 work sites that employ millions of workers. That also has some error associated with it but the error is a lot smaller and so those two months i showed, october certainly was probably better month than march 200,000 rare than 100,000 but not the same dramatic differences. The first lesson is when you have a choice, choose things that are less volatile. Theyre only going to be things that rely on a larger sample size. The second piece of advice id have is just to look over longer periods of time. So the blue bars are the Establishment Survey or Payroll Survey jobs. That tells you the number of jobs added each month there you see once again march looks really bad, but then may looks pretty good. And it bounces around from month to month. I spend some time looking at the blue bars. I try to spend a lot of time looking at the red dotted line and that red dotted line is the average over the last 12 months and if you look at that average its tells you the pace of job growth has picked up a bit 240,000 jobs per month on average for the last 12 months as opposed to 217,000 before that. The 217 is a little bit higher than earlier burt it is broadly conveys the picture of stability, and thats an ann accurate picture because some mongooses go way up, some months you go way down, but its roughly for the last several years has averaged out to this pace of a bit over 200,000 jobs a month. The red line, when youre at a real turning point in the economy, will lag a little bit. You wont pick things up as quickly when you look at a 12month moving average but generally looking over a longer period of time is going to get you a little bit less excited about each monthtomonth blip and a little bit more focused on the trend in the economy. This tip also applies or especially applies with Something Like Unemployment Insurance claims. Here these are every week. We find out how many people made an initial claim of Unemployment Insurance. This is actually administrative data. This isnt based on a survey, not based on a questions. This is based on if you apply for Unemployment Insurance that has to get counseled. The state tell the department of labor. It add inand it reports it. Its great because you get it every week so every week you have in new piece of information about the economy. The problem is two weeks ago you would have panicked because its jumped up to 2,300,000 this week you would have uncork the champ page when it foal the lowest since 1973. 255,000. Both of those numbers probably two extremes, and if you look at here people, tend to look at a fourweek moving average. Its much smoother then the red line which bounces royals and zigzags a lot from week to week. When confronted with noisy data, one thing you can do is look to better data with larger sample. Another thing you can do is look over longer periods of time, but a third thing you can do is find different measures of the same concept and combine them. This is something youre increasingly seeing being done in comments of Federal Reserve officials, docker bat this in the context of labor market indicators, infelt. Banks and analysis analyst does it, which is take indexes that combine a number of different measures, and there are over a dozen measures of wages and compensation. And theyre all slightly conceptually different and also embody different errors and quirks ask and this is three of them. Compensation per hour, the average Hourly Earnings and the employment cost index and theyre all bunsing around. Theres statistical technique called principle components analysis which says, imagine theres some underlying component that is moving all three of these and lets try to estimate it. Its actually just simpling a as a weighted average of the three but uses statistics to find out what weight to put on the three. And that black line there is probably a better measure of wage growth than any one of those three underlying series. You take a lot of different series looking at the same thing, and average them together or if you have a statistical package at your fingertip, call it the first principle component. If you look there youll see wage growth went down, and wage growth lately, the tentative sign is a pickup of wage growth, you see in that black line that a number of people have referred to lately. Another place where i really like combining data is when it comes to the gdp statistics. See in the black line that a number of people have referred to lately. Another another place where i really like combining data is when it comes to the gdp statistics. A little known fact is when the gdp numbers come out, they always report or not always, but but they eventually report two different numbers. One is Gross Domestic Product and that adds up how much everyone bought in a given quarter. How much consumers bought, how much businesses bought in terms of plants and equipment, how much the government bought. If you look at that, for look at that, for the First Quarter of this year it said the economy contracted. The other thing the statisticians do though, is they add up all the income in the First Quarter. How much wages were, how much profits were a few other concepts as well, and that was at 1. 9 turns out when you go through the arithmetic, those two are the same exact thing with two different ways of measuring the economy. The simplest way to think about that is imagine we dont trade and people cant save their income. Everything you make in a given quarter, youre going to spend in a given quarter. Income has to equal spending. You go through something a little fancier and it turns out that still true. One way of measuring the exact same thing was minus 0. 2 and one was plus 1. 9. Which was better . Gdp gdp or gdi . Turns out the answer and an average of them is much better than using either one of them individually. It is a much much more accurate reading of how the Economic Data will eventually be revised. Its much more predictive of whats going to happen in the economy Going Forward and if you could pick one number for growth, you would pick the average of the two. The good news i have for all of you is right now if you want the average of the two you need to add them together and divide by two. Starting starting next week, the bureau of Economic Analysis with the gdp number will, for the first time ever, Start Publishing that as a regular thing. It wont be in the headline, it will be toward the bottom of the lead release but i know i will be turning to that first before i look at the headline because that will be the best measure of how much the economy grew that quarter. Theres another thing you can do with noise. You can look over longer periods you can find the best data to look at, you you can combine different measures but the other thing is every measure tells you different facets of the economy so it can be good to look at a number of different ones. This first First Quarter gdp fell by 0. 2 appropriately colored red in this graph. Employment rose by 2. 2 which is quite a strong increase. Income went up 1. 9 in consumer nine and Consumer Spending went up 2. 1 and Industrial Production was 0. 0. There are a lot of other indicators but these are five particular ones to look at. If you just saw gdp, you would be more nervous about the economy in the First Quarter than if you take in the full context in the full set of data that one might choose to look at. One of the reasons why we are so concerned about data and why we dont want to overreact to any one piece of data and you want to put everything in context is the data we get is revised a lot. The reason its revised a lot is its all based on survey. In the the case of gdp for example, you dont have the first time you publish it they dont have the most recent trade data or inventory data. They only get that as time goes on. So the success of revision to growth, if you look at the fourth 1 45 thousand one, for example, the first estimate was 0. 2 and it first estimate was 0. 2 and it was revised up to 1. 4 and then up to 1. 7. The First Quarter of this year went from positive to a big negative to a small negative. You see that all the time. If you get really attached to a narrative around that first estimate turns out you might be attached to a narrative that subsequently will have a story to explain that was really good the First Quarter of 2001 and relatively weak the first 1 45 thousand 2015, at least measured in this way. This is probably a little bit upset you or for some, but it is a neat point so i thought thought it would show it with you. If you look at Something Like real durable good consumption and you look at the first estimate and the third estimate, they are almost exactly the same. Thats because when the gdp numbers come out, they have, they have a very good measure on Consumer Spending and they dont learn much by the time they do the third revision so they basically publish the same thing. Real healthcare consumption, the first estimate and the third estimate are almost entirely unrelated and thats because they use a survey of the Service Sector to figure out Health Spending and they dont get the result of that survey until after they published the first estimate. They they use very approximate gases to do the first estimate of Health Spending and then they revise it quite a lot for the third one. Thats important important because this year for example, or last year, people looked at the Health Spending data and constructed a whole narrative of its growing really quickly and that tells you blank. Then. Then two months later it was revised and turned out that wasnt what the data actually said. We have the council of economic advisers that had written something that said dont even look at this, the data will be revised and will be revised quite a lot. Once we get the data we will tell you what we think but the first estimate for Health Spending isnt very durable. Thats just an educated consumer who has a reset sense of whats going to be revised and whats not going to be revised. Part of why data is noisy is all these details to quirks, the small sample sizes that you dont get the survey you need on time you need to do seasonal adjustment, all these different things, but the economy itself the underlining truth itself is noisy. Just weird things bounce around from quarter to quarter. The First Quarter quarter. The First Quarter of this year for example, we had really bad weather and that temporarily impacted the economy but not in a long run. You can look at the data and get a better sense of the things that bounce around a lot and tend to reverse themselves and which things tend to continue. In gdp, inventories bounce around. They can be positive or negative and what they are one quarter, if theyre great one quarter that doesnt mean theyre going to be great the next, in fact the next, in fact it might mean the opposite. Consumption is more stable. One way we use that is we are very focused on the growth way, not gdp as a whole but of consumption plus investment. Those are the two parts of gdp that in our statistical analysis, we have found are the most stable which means they are the best predictor of what gdp is going to be in the next quarter or over the next year. If you look there at the blue, thats gdp, it was really negative at the beginning of 2014. A lot of that was for the noisy reasons. Of that was for the noisy reasons. If you are looking at the variable we like the orange one, it wasnt a great quarter because of the winter, but it, but it didnt look quite as bad. Then you have this huge rebound in the blue bars with gdp and you didnt get as much of a rebound because its a much stable measure. In general those orange bars dont jump around as much and theyre giving you more of a signal. The blue bars are just gdp noise. Another great piece of news for all of you, as of next week this also is going to be added to the release along with the gdp numbers. You will be able look this up yourself and again it will be one of the first things that i know i will turn to when i get the data next week. I want to just put a few more things down on the table for you. Then we will open it up to discussion with jim and all of you. One of the tradeoffs between some data which can be really up to the moment, the ism Manufacturing Survey, the market moves a lot in response to that survey or it can move a lot, and thats because you get it, we will get it the week after next at the very beginning of august. We will get the number for july. Thats great thats great because its about as uptotheminute as you can get in Economic Data but it is really noisy. If you asked me how the economy is doing in july of this year and you asked me that two weeks from now, i will look at the ism Manufacturing Survey because that will be the only piece of data i have for july. If you asked me how the economy was doing in july 2005 or july 1995i wouldnt look at this piece of data, i would look at Everything Else we have which takes longer to else we have which takes longer to compile but is ultimately more accurate. The other extreme, real median household income, the latest data we have for that is 2013. We will find out the 2014 number 14 number in september of this year. We find out more than a year after it elapses. The market could care less about those numbers because they dont care about the economy a year and a half ago, but if you want to ask, what happened to the typical family in the 90s, what happened to the typical family in the recession, those are the data you will want to use. They are less timely but more complete. Just to put two more things down on the table before we open it up, be careful about longer run trends. Some people like people like to look at the Participation Rate of the population for example, those are useful variables but it doesnt tell you of the economy is going up or down in a business cycle, it tells you about underlining society forces such as the age of the workforce, whether women are participating. So the example i have here is if you looked at the fraction of the population that was working you wouldve thought 2009 was a better year than 1955. If you look at the labor force partition patient rate you wouldve thought to thousand nine wouldve thought 2009 was a better year than 1995, thats why when we want to compare those two years, we use the Unemployment Rate. 55 was quite low and 2009 we 2009 we were in the Great Recession and the Unemployment Rate was quite high. I would do the same thing now as well. When we go monthtomonth, a lot of people looking at important variables but theres a reason why the Unemployment Rate is the headline. Thats thats more comparable of the time because its less subjective to some of these bigger broader demographic trends. Finally, this is the simplest one, always make sure you are distinguishing between real and nominal data. In 1981 wages rose 8. 6 , in 2014 wage wages rose 2. 3 . Which one of those years would you have rather been a worker in . The answer is definitely 2014 because the inflation rate 2014 because the inflation rate was quite low in that year sue gato wage boost opposed to 1981 where the inflation rate was very high and that cut into your real wages. Thats not just true of wages, that is true of everything. Make sure you are looking to see if things are adjusted for inflation. Summarize and be a little specific as i look at the Employment Situation we will get it to weeks from friday. It will tell us about the month of july so it is timely. The establishment job number is the first thing to look at watch for the revisions that we get for may and june and for the average of the last six months or a year. Unemployment rate can rise or fall for good reason but its the best thing to look at. We look at the Participation Rate, remember it just doesnt tell you the economy got better or worse but it tells you a few population got older or not older for example. When you do wages make sure you adjust for inflation which is hard to do because you have to wait a week or two for cpi data. The cost of gdp watch for the average of gdp and gdi. Look at look at the private domestic purchases which gives you more of a signal. Thats what i tried to do when looking at data and it ismy that was terrific. Thank you to putting this together and look forward to seeing them on your web site. You put out after the jobs report a lovely blond that i take that i see is a viable they usually comes out of around 9 30 a. M. I usually read in the afternoon. [laughter] but what it does is cuts through the noisy and the clatter that is one of the most understandable dive into the employment wage situation and so i appreciate the readability of that report and everybody should take a look at that. Lets talk wages. There is a lot of talk about that. Were also seeing some upward trends. Wine of the of frustrations that i have is that inflation is under 2 . But inflation was Something Like that. What are you seeing it in wages and what you look at . Booktv at the jobs numbers also include wages wishes the survey of the employer in that is a quite useful number to look at but to look at a couple different measures like the employment compensation index is growing more quickly does that leave the other is true . Or is it somewhere in between . So i try to show the average of the totality of it but not enough to see some pickup than the second is from inflation so if you look at real wages over two and a half years they are rising more than twice the pace over the course over the last expansion in. We would like to see more but you are seeing real wages growing but inflation generally has trended down over tied. Just like the price of gasoline you cannot expect it to over fall but that overall target average for inflation has also fallen. So that nominal wage increase is different then what it was in the past. Of talk you did recently at the Peterson Institute . You talked about productivity and also zero total factor productivity. That reminded me of like the dark matter in the universe but can you explain what you see with productivity . Productivity and total factor productivity are among the most important things in the economy. Labor is the output for one hour of labor. Other reasons why you can get more output is workers can be better educated, more capital or machinery at their disposal or combined labor better with larger markets better inventory. The last is called total factor productivity. That is the most exciting thing you can have with a fixed amount of labor and capital to get more stuff. Our fed. Two understand physical situation you need to know the of productivity growth to would understand why wages have stagnated since the 70s and understand productivity growth. If you want to have day faster cheaper Income Growth a lot of things you need but one is productivity so it is central to the economy. It is about the noisiest economic variable that you have they both have errors in when you divide one by the error by the other so i like to lick their productivity over periods of 10 years or longer the numbers a bounce around all over the place so look dad a longer trend to predict productivity in the future dont look for the last year or two but look over the last 10 or 50 years to you give you a sense girl ring for word. We had 30 years the very high productivity growth after world war ii that declined the b2 decades then rebounded a little bit. Is there a predictive nature true productivity that will never be repeated again . Unless it is world war iii then we have a nice aftermath. [laughter] predicting productivity involves inventions that people have not come up with yet if i knew that i would die is set here with you talking about data. I dont think anybody knows the answer but the end of world war ii it was of special period as when the cave back together after the terrible collapse does refigure out how to do commercialize the innovation like the jet engine we developed to fight the war. That was tremendous infrastructure basic research and if we did that begin we would get higher productivity growth as a result. One more question and then we will turn into the audience. Then you can go to that microphone. Looking back Economic Growth averaged 3. 7 then 2001 through 2015 it averaged 1. 9 . I know you cannot predict the inventions of the future but are there factors demographically that say there is a limit to the growth that a country like the United States can have . 3. Seven is not realistic. What are the factors that say maybe slow growth is not that bad . I will do one equation. Output output per hour times our. Output divided by hours. That i am quite confident is true. So to understand growth and you have to understand the future of hours. There is a lot to be excited about with productivity with the internet and a Cloud Computing and personalized medicine and clean energy, you name it to lot of exciting things to win on many which could increase the pace of innovation but to have cautious optimism we will not get the average growth that we had in the 50s and 60s and 70s because the hours was a result of the baby boom started in 1946 started to enter the workforce in the 60s and 70s that led to a big boulder of dollars have the percentage of women with from 1 4 to up that more than twothirds. And definitely there was more room to grow so that was a huge transformation and. With the hours was a unique repeatable story but the al platt for our common no reason may could not make a choice is to do better in the future. Just to follow up we have an aging population so that output per hour will have to cover benefits for people who are no bonterre is a the work force. Does the future prime age workers have a burden on their hands . Today have to be even more productive than previous generations . We are supporting more people by producing more with each hour. To understand the magnitude of the fiscal challenge you can predict reasonably well to watch the of baby boomers to see what fertility rates will be but you really get us sense of that challenge for each of your hours for future productivity. They give for this opportunity i want to ask a question about the physical jobs report to standardize the data. I know you want to have a standard data set to go back decades but are there any trends in the new economy that is not captured with the other statistical sources . That is something we have been putting some thought into her garner have a definitive answer but theyre probably matters say the ben and most jobs are still not do a cautery jobs but certainly looking at the Household Survey call are you working or not . Most of that the user is straightforward but if you are part time with the sherry economy get maybe no. So establishment whod you employ . To think that he will not be listed by an employee by uber but if asked they may say yes. So that is a different set of challenges i am just not sure how large those are to the overall story. Fate you very much for this. If we looked at some big picture items to talk about the challenges that drive that but could you help us to the extent that they are connected with the big issue with respect with too large a of a focus on the shortterm. Our corporations somehow to go into enhancing types of technologies because of the drive to show better part of the results of virgil looked at that . The set of data issues is one of the issues i try not to get too obsessed with so try to look at the longerterm trend of where we are calling. I tried to keep that longerterm perspective with the economy of the rise you will get to exuberant or too depressed. With Public Policy, that is say important discussion to be had what can you do and this is related to the government policy also that businesses will under invest to shake though longterm perspective even doing basic research because it benefits everyone. The government can do that that is why funding and i aitches so important to find teeeighteen for more applied research but that does not make up for the longer run perspective. We will limit questions to those who are already in line. Fate you for arranging this. If they lower you back to the classroom your students will be very lucky. But to mention in trade and currentaccount deficits that over time the industrial structure that is linked to the elevation system do you think of a of another focus . Yes. And to clarify a my goal is not the uptodate perspective but just an idea of how to read the numbers and combine them. With the trade deficit or a similar concept is definitely important it shows up what we do domestically plus with our trade balance so that the tracks from the gdp but the underlying economics are a little more complicated so we will draw more imports to cause the trade deficit to go up but some with a with the economy weakens we will buy less the trade deficit will go down proposal with is a little complicated to a understand how it affects the overall economy causing a trade deficit but certainly when certain countries run a surplus because of the macroeconomic policies and another thing i am quite sure of is i am sure that these measures add up at zero. And there is the committed Exchange Policy that the United States is often at the flip side and as a result can have the facts on the structure of our economy that is why we were pushing hard on those macroeconomic policies to help address and reduce that will level analysis. I should preface the question i am not an economist to wrap my caveman brown dash gray around this but to talk about a house mate will get compensation purses Labor Productivity for someone who does not really deal with this stage today do you have it vice . Advice . An Important Message is one message they usually dont seek is productivity growth since the 70s is lower than in the 40s. The total growth has not slowed one reason why it does not jump out that somebody does not do it in algorithms that is unforgivable. One key issue this Save Movement of distance so if something keeps going up by the same unit then if it is level that is not the case but it is slowing over time. But discourage them into a pet peeve of mine. [laughter] but second the gap between the productivity and wages. One has an increase of inequality or a failure of workers to get the full benefit of what they produce and a shift of overall income away from labor and to read it is concerning. The other reason is statistical quirks to use one price index the wages line use of a different one and they behave differently over time. About half of that is the real underlying 80 quality. I draw this to your attention because some said the debt these quirks so dont Pay Attention to the picture. They are right for the quirks but we correct for those it is one way to say productivity growth were to capture that and then to do complications and then still come to that conclusion. What about non Wage Compensation . Vary people showed that graf been different ways. I think 10 percent of the difference is the non Wage Compensation it is a smaller part of the story. Thanks for putting this together. What about the of concept that it plays a more pronounced role of the of labor markets and Unemployment Rate . So the first prong do we have Good Measures for that or an understanding of how that works with policy can affect that much . I will explain that a little bit the concept that was introduced into the concept literature in days it went way up and stayed up so Larry Summers advanced the argument that european economies were stuck and they stayed there. But there still is evidence that the United States market is more flexible and that flexibility means you are less likely to be stuck there. When the recession first hit we had unemployment at rates we had not seen since the 80s and sustained longterm unemployment at rates from the entire postwar period so a lot of people were nervous what if it is here to stay . What if we get stuck . At the time i was cautiously hopeful that the labor market would be more important i think the data has been kind increasingly justified now it is 5. 3 but that is the average of the previous rate long term it is elevated relative but even there it has come down and even faster in the last year or two so that is also on track to be in the neighborhood before the recession. I was never taken for granted why it is important to be aggressive to deal with unemployment along for elastic than somebody who will lose the skills to have the job employers dont want to hire them so temporary becomes permanent. Probably for the of the spar riata avoided that but dont take that for granted in the future that is why we vigorously take care of that in this cycle. I consider this our a gift. To read it is a spectacular lesson how to look at Economic Data that i know will make a difference and i hope the people watching at home really appreciate the way that you focus down on a very simple informative way they can for taking your time out of your busy day to join us. [applause] have a wonderful weekend. A a headquarters in washington d. C. , this is just over an hour. Good afternoon. Welcome to nasa good afternoon welcome to noone nasa headquarters i am with the office of communications. After the new Horizons Research team is back to reveal even more unprecedented images and science had continues to be returned from the new horizon spacecraft. But to set the stage for todays briefing please welcome to the podium astronauts and head of the project added is all ahead of over 100 missions ladies and gentlemen, mr. Grunsfeld date you very much. This week has ben phenomenal. On monday we release the first image from the epic camera on the discover mission this is the first true blue marble of the earth since 1972 when the apollo 17 astronauts took the famous blue marble is a niche that i think pain san incredible picture of our home planet and how lucky and precious planet earth is especially when you compare it to the amazing views we have gotten from the spacecraft which is say hawse dial world a hostile world. We Just Announced a discovery a cousin solar system to that of our own which a star much like our son and that is a little bit older and the xl planet that is about 60 bigger diameter than rand the earth right in the middle of the a habitable so and it is amazing what were doing but thin this is were getting from pluto is more than amazing and prove definitively a scientific theory that science never sleeps. Look at our panel they look pretty cheery for a group of scientists that have not been sleeping for the last few weeks with their here to tell us about the most recent amazing results from the mission and i am thrilled to hear those results. [applause] before i introduce the panel does social media with its mission and results of images paul of the account on twitter or u2 and facebook and other nasa accounts and send your questions askin asset we will answer the question is as quickly as possible but follow the conversation all over the world from the Historic Mission pluto flyby and began online today and in the future can be obtained by going to our web site. First you will hear from the director of planetary sciences. New horizons and Principal Investigator at the Research Institute in boulder colorado. Michael summers front george mason university. New verizon deputy project scientist. In the new horizon Co Investigator from washington said university in st. Louis july 14th was very historic with day very successful flyby of the plan does system. We are just 10 days out we only had an opportunity to see 5 of the data. Restorer that on board as we flew through the system is just now starting to come back. Each and every day looking at the data as it comes back is the pleasure to be a part of that to save the New Discovery that is coming out. Today we will talk about the latest data within the last few days. It is spectacular but also that was taken on board prior to the encounter and post and counter after this space kraft had a chance to look back has a hurtles away 16 kilometers per second they are amazing discoveries so i will turn it over to the Principal Investigator to start it off. Last week the United States through our project and nasa explore the. System we cannot tell you how happy we are to tell you what we have been discovering. Even just the first couple days of the Data Download now we are 10 days out with more time to think about the data set on the ground and three times as much data on the ground. It isnt as much but four or 5 of the data back so were just scratching the surface. Also we are on the exploration on the other side this is the Bumper Sticker inspired by our deputy Systems Engineer that says my other vehicle explored pluto it has pluto in the rearview mirror. [laughter] so i would like to call up my first graphic edits day hauntingly beautiful double planet system with charon on the right with true color added. Is a tell you where we are in the michigan feast your eyes on this. We have never been to a double planet system and it is a scientific wonderland. To finish the first phase was intensive than day period that we set out of their data sets to tell us the basics that you will hear about as of the report on those findings we have already made in the few days. Now moving into a second phase of doming it is important to lenders to the difference. Now we are transmitting Engineering Data and from the instruments and data to do with those images with specter everybody has got so through mid september only occasionally will we have new images on the ground available to read these. Beginning september the spigot will open again then for about one year or more this guy will be reading presence with data from the political system. It will be quite a ride. Were happy with interest of the mission and we are excited to show it with you. If you are seeing a cardiologists you may want to leave the room there are some mind blowing discoveries. I want to show the mosaic of the best global approach ended it is mouthwatering of bubble of detail is spectacular a resolution of 2. 2 kilometers per pixel and just looking at it that pluto has a very complicated story to tell with it interesting history that a lot of poor we need to do. I want to drive it home to show the image of higher rectification. Would get the northern half of that image. We could blow would up even further you concede that terrain including the north pole is true color bill whole range of geologically expression. But lets your eyes gazed over to the east to see different units and features to tell that complicated story that is there for us to unravel. Now go to the south a more complicated story with a dark region the heart john pluto on pluto and those massive tectonics features that are emanating from Cthulhu Reggio. I do want to tell you one aspect of the interpretation we have made to look more carefully like a real heart it has two lobes off the of left end on the right you can distinguish a difference on the right it looks like a much thinner deposits and our interpretation with the material emanating to the south is that in both cases we believe the source of that material is though western globe it is probably nitrogens know of transported off perhaps by wind or avian transport or sublimation or a process we have not thought about but that become to understand this feature a the obiit as little bit. Up next is a false color image that has been stretched to show the dramatic differences of how old it flows with geology. This is mind blowing for the Bigger Picture but talk about Cthulhu Reggio they have different colors and tell us something and the High Resolutions supports that. The polar region and has said different color then into the dark region the color is the composition that seems to be correlated that tells us the payload that we brought was the right pavo because on board the spacecraft tremendous data set with High Resolution and colors and mapping and a spectacular data set with information over 64,000 pixels to get the specter of bed every vacation. We can tell the story very well over the next year. I will move on and tell you about the atmospheric science. This is to illustrate our culture of violence from. Host to read this debt invented this years ago there is body of literature speculating how charon could have an atmosphere we dont have the full set yet and we wont until september but you can see the little yellow light to represent the path of the sun as seen by the spacecraft moving behind charon is eclipsed the northern region. That is exactly how we plan to the trajectory to go and as you flip either side you can see on the graph of light level goes straight through zeroed nothing like the data that we showed you last week to clear the see a refracted signature. It is telling us charon has much less atmosphere than pluto but we cannot put strict bounds of that yet but the spectrum will be down linked but now with the much more rare atmosphere that confirms the preencounter version. It maybe there is a thin nitrogen there in the atmosphere or methane but must be very tenuous compared to pluto emphasizing how different they are despite the Close Association in space. Also speaking to the fact we now have the data for pluto that it was time to to arrive visit was passing behind the planet to measure the refractive index of the atmosphere. We got it. It is data and they have a wonderful scientific surprise measured at the base for the first time in history was substantially lower than predicted that probably tells us the story but i would like to close with the time stamp a silhouette to look back after the flyby. With the apollo earth rise. You can only get that image to cross to the far side and look back