The Federal Reserve has just spent two days discussing what its going to do about this economy. For now the fed plans to stay the course continue pumping 85 billion a month into the Financial System and that has the affect of keeping Interest Rates down. The fed says its too early to taper that stimulus in part because the Government Shutdown set us back a bit but they still cite a week jobs picture. 10,000 private sector jobs were added in october. Thats not the monthly government jobs report. Well get one of those on november 8th. This is from the payroll firm adp but its generally seen as a predictor of what the government number will say especially since the vast majority of jobs created these days are in in fact, in the private sector. 130,000 is well below the average for the last 12 months. How does this connect back to the fed . Lower Interest Rates were meant to encourage lending making money cheap to borrow. Thats supposed to help firms expand and increase their hiring, make people spend more but companies arent doing that at the speed that the fed would go like. And low Interest Rates do come with one potential danger. They can fuel inflation. The fed doesnt have to worry about that just yet. We learned that the prices in september rows. 1 or core goods and services. That excludes volatile food and energy prices. Those same core prices are up 1. 7 compared to the same time last year. If youre wondering how this, the Consumer Price index is figured out listen to this. Reporter cpi a measure of the change in prices of about 80,000 items in a bask of goods and services that range from bacon to bananas, from lawncare to dental care, from toys to tuition. From apartment rent to the hotel bill. Its all stuff that ends up on the shopping lists of some 28,000 urban families who keep records examined by government workers. Those workers track prices for everything from ice cream to flat screen t. V. s at 23,000 retailers, service businesses, food trucks, even vending machines. Once crunched the numbers measuring price changes and weighing each item according to its importance in the family bunch, and out comes an average and that number is inflation. Reporter were not talking about Ben Bernankes or eating or viewing habits but for that we go to carl at deutsche point. If you take out food and energyby the way, why do we take out food and energy . Econists consume a lot of food and energy as well but those are volatile components. If we think of what gas price versus done over the past two or three years, if you were trying to set Monetary Policy based on an inflation metric that was moving up and down over and out due to energy price moves which often then bleed into food prices as well, it would be disaster. So you take this core thing, this no food and energy in inflation increase over last year. September to september, is it good, bad, is it where we should be . Its a decent print. We need a little bit of inflation in the economy to keep things moving. The fed wants that closer to 2 . Were close to the target but its a tale of two inflation metrics. If we divide that into goods and services, the goods component is extremely weak and its in negative territory right now. Metric. Its making it look misleading it low. Even though its a broad measure. Exactly. The reason thats happening is because the dollar has been strengthening. Its up 5 compare to most of our Major Trading partners. The strong dollar means that import prices stay down and import fries ar prices are falling. Its a sign of a strengthening dollar. And the Service Sector where metrics are going up about 2. 5 . The fed was concerned about the affect of washingtons dithering and debating on the economy. They werent entirely clear about it, because the feds are never entirely clear on anything. But they did imply if you were thinking about pulling out 85 billion a month, the stuff in washington caused them to be in that business a little longer. Absolutely, its caused it for a couple of reasons. First of all, the Government Shutdown. If we look at consumer confidence, the manufacturing survey, the nonmanufacturing survey, all of those seem to have weakened late september into october probably in alps of the Government Shutdown. Thats part of the problem. The other part of the problem the date it was has gone missing. With the Government Shutdown they were not tabulating things like employment, inflation, and these metrics. So they went into the october meeting with not a whole lot more information than they had in the september meeting. Good news, how long do you think the feds will say we cant keep putting 85 million in the economy. The feds need to see more evidence that were running in the right direction. So they dont pull out too soon and then have to jump right back into the market. The next meet something in december. I dont think well see a significant improvement between the labor day at a between now and then that will convince policymakers that the time has come to taper asset purchases, and now ben bernanke, will be leaving and so the next meeting will be the march meeting. Thats when janet yellen, thats her first meeting as fed chair. In my view by the time we get to the march meeting, the economy will have strengthened, and the labor market will have strengthened. Our viewers should remember that Mortgage Rates will be something that happens before that. It doesnt always depend on what the fed does. Its what they think its going to do. Yes. Carl, senior economist at deutsche bank. How to narrow the gap between what the government takes in and what it spends. That shortfall is called the deficit on wednesday the Treasury Department said that the government took in 75 billion more than it spent in september. A spur plus now thats just one month and the deficit has not gone away but it helped narrow the deficit to just 680 billion. Hey, dont laugh at that. Thats the lowest since 2008, and its a drop of 38 from the prior fiscal year. Deficit spending widened during the recession, we know that. But it has since narrowed because of economic recovery, spending cuts and especially tax hikes because it took affect this year. Bank of america said that the u. S. Could file a civil lawsuit according to the wall street journal citing a regulatory filing. B. Of a. Losses could rise above 5 billion. Big banks are facing a rash of legal action when the economy went south and the housing crash. Jennifer hudson, kathleen sebelius, and how the battle to save or kill obamacare is playing out to hollywood. We have that and more. Keep it right here. While you were asleep, news was happening. Here are the stories were following. Find out what happened and what to expect. International outrage. A day of political posturing. Every morning from 6 to 10am Al Jazeera America brings you more us and global news than any other American News channel. Tell us exactly what is behind this story. From more sources around the world. The situation has intensified here at the boarder. Start every morning, every day, 6am to 10 eastern with Al Jazeera America. A senator under investigation and only Al Jazeera America is there. Uncovering the corruption opening the files. Are you going to resign if yourre indicted . Breaking the story real reporting, this is what we do. Al Jazeera America determining using some sort of subjective interpretation of their policy as to whether or not your particular report was actually abusive, because if it doesnt contain language that specifically threatens you directly or is targeted towards you specifically, they may not consider it abuse. They may consider it offensive. And in that case they just recommend that you block that person. I dont want to minimise this, because i mean, theres some really horrible things that are on line, and its not its not just twitter, what has happened through social media and the anonymity of the net is that you see websites, hatefilled websites targetting all sorts of groups, popping up. There has been a huge number of those that exist as well. vo Al Jazeera America we understand that every news story begins and ends with people. The efforts are focused on rescuing stranded residents. vo we pursue that story beyond the headline, past the spokesperson, to the streets. Thousands of riot Police Deployed across the capitol. vo we put all of our Global Resources behind every story. It is a scene of utter devastation. vo and follow it no matter where it leads, all the way to you. Al Jazeera America. Take a new look at news. All this week america tonight is investigating sex crimes on campus. Over 90 of sexual assaults on campuses are being perpetrated by serial offenders. This friday at 9 eastern. Join a live town hall event hear firsthand accounts from victims who fought for justice. Reality is. When it happens people just kinda shrug. Learn how you can avoid sexual assaults, and what you can do as a bystander to prevent them. Dont miss a special america tonight live town hall friday 9 eastern on Al Jazeera America. Kathleen sebelius faced tough questions over healthcare. Gov , the glitchy website where millions of americans are supposed to buy coverage. They spent 118 million on the site and 56 million more on it support yet the system does not know how to give an accurate price for healthcare. While president obama is in boston promoting the system and doing damage control. The president obama spot at Nathaniel Hall where it all started seven years ago, mitt romney signed the Massachusetts Health reform law which the obamacare is modeled after. Signing up 3 million Young Healthy people in the first year. That group of people is so important that the government has recruited hollywood heavyweights to lure them in with videos. Seduced by one side. My companys healthcare, it doesnt cover mammograms. The aca covers Preventive Care for womens health. Scared by the other. Take your pants off. The online site to attract obamacares most crucial buyers, the young and healthy like these filmmakers in los angeles. I think people in our age group are more concerned with their finances than their wellbeing. So its tough. I dont know if that video gets that point across. Reporter that video featuring Jennifer Hudson spoofing scandal was produced by funny or die. A comedy website with 19 million unique viewers a month. The entertainers were enlisted to help sell young people on obamacare. Funny or die is volunteering its time and resources to produce 20 videos and projects promoting obamacare. Along with celebrities tweeting the white house is getting free advertising on social media, exactly where young people live. I like videos like this because they make light of a pretty serious situation. And maybe reach an audience that wouldnt know about things like this. Reporter according to the Associated Press the Obama Administration is reportedly spending 684 million a year on publish police the marketing, and twicing much of it parsed out to states for their own ad campaigns. [ singing ] reporter the antiobamacare camp is using the same tactic. The Group Generation opportunity which has received 5 million from the conservative billionaire koch brothers, 750,000 was earmarked for antiobamacare initiative produced creepy uncle sam generating 3 million views on youtube and urge young people to opposite out of obamacare saying its cheaper to buy private plans or pay a fine. Generation opportunity, theyre hoping to woo their audience away from obamacare and force a repeal of the law. Telling washington they can do better than obamacare. Reporter both sides have their work cut out for them. A recent gallop pol gallup poll showed 69 of 18 to 35 years olds did not know that they had to buy insurance. Its unclear who is winning the information war. But for or against the videos are raising awareness. The negative one makes me want to say, hey, wait a second. I want to look this up. At obamacare we believe saying affordable healthcare so young people will love us. You want to know what we can cover, how much its going to cost, and not just this weird take on the government screwing us. Reporter al jazeera. Well, selling obamacare does not come cheap. Aside from the money that the administration is spending an additional 1 million will be spent for insurers on tv spots. Be prepared for more ads. The mastery of mobile. Is the most important part of main street giving it a thumbs down . That story and more as real money continues. Keep it here. While you were asleep, news was happening. Here are the stories were following. Find out what happened and what to expect. International outrage. A day of political posturing. Every morning from 6 to 10am Al Jazeera America brings you more us and global news than any other American News channel. Tell us exactly what is behind this story. From more sources around the world. The situation has intensified here at the boarder. Start every morning, every day, 6am to 10 eastern with Al Jazeera America. On august 20th, Al Jazeera America introduced facebook is on a roll. Its Third QuarterEarnings Report blew past analyst expectation and its stock has jumped more than 150 . The social media giant was able to silence critic s. Facebook has risen to the challenge but user may be feeling a bit of facebook fatigue. A few survey show 42 of facebook users ages 18 to 29, and 34 of those 30 to 49 have reduced their usage. 20 say they no longer use facebook at all. A millennial in new york who said she uses facebook less than she used top. Thank you for being with us. You are the demographic that we think of when we think of facebook. But this Study Suggests that some of you on the younger side of this demographic are not using it as much. Give me a sense of your history with facebook in terms of your usage . Sure, well, im a social media marketer. Ive had to use facebook specifically every day for business marketing, but on a person level that recreek tha ct you mentioned is certainly the case. I only navigate to facebook when prompted by mobile notifications saying that i have a message or i was tagged in something. But to some degree once youre there, do you ungauge with it differently . Facebook would love to hear that you engage with it because you hear these mobile notifications, then there is an ad and you go buy something. What do you use it for . Its very easy to ignore all that and just do what you need to do and get off. Because its become overwhelming. There is so much content, so much wording that with competing social Media Channels like instagram you can just see what you want to see visually and get off of the channel. You do post things to facebook . I do, but much less frequently. Now i would say rather than daily status updates im lucky if i get to it once a week, and usually it will be something less personal. It will be a news story that i read that i thought was interesting, or some sort of event that i think others should check out. How did this pattern develop . Were you at the front end of your peer group doing this, or did you do it because your friends or people you associated with moved off to other social media platforms . I would say its a combination. It certainly started because of all the privacy complications. As that process became more complicated and you had to filter and create lists in order to really share what you wanted to share with the select group of people, it really just became so timeconsuming, and it was much lessit was much lessen joyible, honestly. Where do you end up going . Do you use social media or do you back off of social media in general and then what is taking up the time. I use social media every day and instagram every day and vine. I can see what my friends are up to and not have to read through facebook status. I can visually see what theyre up to. Double pass, they know i like it, ive seen it. Thats an acknowledgment that thats awesome and i move on with my day. When youre a working professional you dont have time to go through all the status updates and comment on all them. Great to talk to you. Joining us from new jersey. How has your use of facebook changed since you first joined. Rebecca tweets, i stopped using it because of privacy settings, and this is my favorite one. Rick said, way, way, way, way, way, way, way, way, way, way, way down. Used my is 40 characters. I like that, thats great. Tell me what you think by tweeting me or leave us a comment on facebook or anywhere you want to leave us comment. I need to get a vine and whatever else, and instagram thing so people can leave comments there, too. Facebook exposed a declin facebook disclosed a declining use, kirk, you heard some of those comments. Is that in keeping with what you heard about user activity on facebook . Yes, absolutely. I mean, a lot of it has been anecdotal because facebook does fought break out its user demographics by age. In order to see if younger people are shying away from facebook we have to listen to stories. But they did say on their Earnings Call today while younger teens were stable between q 2 and q 3 with over all monthly actives, it did decline. We dont know what age group that is, but it scared some investors that the stock went down after that. You saw the stock go up and then it went down. Kurt, one has to imagine, im not in this world. Im certainly not a guy who invented this, but you got to imagine when facebook comes out. Its so new, so groundbreaking, at some point the fascination factor of spending hours and hours on facebook which i admit i have done in the past, it gets old and you move on to other things. Yes, when facebook is competing with so many other social networks that are giving people away to share things that are easier to digest. Pictures or videos, the visual aspect is a little bit nicer and while people still share pictures to facebook when you can go to instagram and put a filter on or snap chat and do things that may be quicker or more spur of the moment, those types of use cases are helpful, and facebook is now competing with that. Even if my viewers are wondering if they lose users to instagram, thats also their company. I dont know if it costs them in the end. Has facebook done a good job, and what does the future of facebook look at in mobile strategy. It has been a big emphasis for them pour the last 1 ove over the last 80 months or so. They have since built native apps for the iphone or android phone. The thing for mobile about facebook thats where they expect to get their next billion users. Not necessarily people here in the united states, but people in the emerging markets who dont have desk top computers, traditional landline internet, that theyre going to be coming to facebook over mobile. Something that theyre putting a lot of time and energy to make sure that it works properly, and its giving them returns for share holders. Facebook is around the 50 mark. Those who bought it, finally made money off it. Now twitter is on the horizon. If you had to look out there is this a space and different space for a very successful twitter and a successful facebook. Or does facebook wane a bit and twitter gains a bitter or twitter wanes a bit and facebook gains. I think there is room for both of them. There is a fight for Second Screen users if youre watching the super bowl or president ial election or whatever it may be they want you to bring the conversation to their individual platform. Twitter and facebook are fighting to make that happen. The more people are engaging around Live Television that will pro tell twitter, make them more wettive with facebook or extend the gap. But i think theyre very different use cases in a lot of ways, and i think will is room for both out there. Kurt, good to talk to you. Your twitter handle is kurt wagner 8. Follow kurt. He knows about this stuff. People ask me about it, and i dont know as much as he knows. Thanks, cut. Thank you for having me. My final thoughts go out to the once embattled auto industry. They were headed to collapse, and the government stepped in, and saved them to the tune of 40 billion. The leaner company that came out of the bankruptcy. Since then g. M. Made a pretty good come back. They turned a profit in the their quarter. The stock is up 29 this year. Thats still not enough to recoop all of the governments investment. The government wants its money out of g. M. The u. S. Registered losses totaling 9. 7 billion on the sale of its Stock Holdings in the Company Since 2010. Its expected to get out of g. M. Completely by early next year. So that number will go up a little bit. Whatever your opinion of bailouts and government interference, more than a million jobs were probably saved because of the governments action. It might have cost the taxpayers three times the amount of the g. M. Bail out. The auto rescue may have given us all a return on investment. Thats our show for today