Backup 3 Baracuda dot com slash back. To emulating top $710.00 k. And u.s. . News now. C.b.s. News I'm Sam what's in your former National Intelligence Director James Clapper says he can't understand why President Trump won't just come out and acknowledge the Russians interfered with last year's presidential election and stop hedging about it I don't know why the ambiguity about this because the threat posed by by Russia is manifest and and obvious and has been for a long time you tell c.n.n. State of the Union Mr Trump seems to be trying to deal a gentleman's the American intelligence community which is concluded there was Russian interference Mr Trump says President Putin told him that never happened the president's in the Philippines wrapping up his 5 country multi meeting Asian Tour c.b.s. News Chief White House correspondent Major Garrett he was welcomed at another global summit and shared a handshake with Philippine president Rod Rigo do terror today do terror to it's carried out an aggressive campaign against drug dealers and users amid accusations of death squad killings of thousands without trial White House chief of staff John Kelly told us human rights become quote a hot topic here but the United States still needed proof of abuses to terror today said this won't even come up their territory recently claimed to have personally killed a man Mr Trump has praised his handling of the drug problem under the protesters gathered for a March and rally in Los Angeles to demonstrate against sexual harassment and assault. It was billed as the meat to rally with the goal of getting women to share their stories and getting men to pay attention Alabama Republican Roy Moore is trying to raise money for his u.s. Senate race on allegations he had a sexual relationship with a 14 year old girl when he was in his early thirties he writes in a fundraising pitch that the vicious and sleazy attacks against. We are growing more vicious by the minute c.b.s. News correspondent Manitoba Hawke is many of his supporters have been vocal in their defense the question is whether the allegations could sway others away from the conservative firebrand wary of losing the seat to a Democrat some Republicans are urging voters to write in Luther Strange next month he lost 2 more in the primary but more a former Supreme Court justice here is no stranger to Alabama politics or controversy and at this point seems unwilling to bow out more will face Democrat Doug Jones in a special election December 12th Minnesota's helping to host the 1st World's Fair on u.s. Soil in nearly 40 years to do that though it'll have to overcome bids by Poland's 3rd largest city was and the Argentine capital of Buenos Aires the winner will be selected in Paris this coming Wednesday the events that introduce the world to the Eiffel Tower the Space Needle in the Ferris Wheel have lost some of their cultural relevance but they still draw millions of visitors and they allow host to show off a little this is c.b.s. News. What if I press your starting to build across the Rockies and plains will be lucky in a cool dry weather conditions around out this Sunday for the Denver metro area temperatures into the fifty's into early this evening Bronco football dry and cool forty's lows a night into the mid thirty's highs near 70 on Monday little cooler again Tuesday weather brought to you by Colorado the realty pay less keep more Colorado flat the Realty dot com meter all just ork your 710 cane us. I met done part of that was fictional but you will die someday and if you don't make a legal plan and the government will make one for you my lawyer Michael Bailey good trades are reasonable and he can meet with you and your spouse wherever you want and on weekends 720-394-6887 extension 1 line 8 m.b. In law. Breakers money Ok on us News Talk 710 and I can make it into more money 25 years on the air with a voice matters here's your host breakers. Welcome to America's Money program this is money talk bring her along with you we have our guest segment coming up that will be moving toward that very briefly and we'll talk about our guest as we get closer in a few moments let's take a look at the week ahead in the canyons of Wall Street the information that will be . Reviewed as the week goes on. It's a fairly quiet week in a lot of ways certainly off to a slow start we will get the producer price index on Tuesday morning and the estimate is a gain of 110th of one percent once again not saying much not seeing much in the way of inflation and the producer price index which used to be known as also Price Index not expected to show a whole lot in this report this will be for the month of October on Wednesday morning we get the consumer price index and that is also expected to be quiet the consensus forecast is 110th of one percent increase the core consumer price index consensus guess work there 2 tenths of one percent retail sales are due out a little before again for the month of October on Wednesday morning and they're expected to be flat and not looking for any change at all and retail sales for the month of October and. They also have a category of retail sales excluding automobiles that's expected to have an uptick of 2 tenths of one percent we'll get an update on the weekly jobless claims there's the morning they've been behaving so well yes the mid is 239000 that's what it came in last week and these are very very low numbers on historical basis and for the past couple of years the numbers have been cysts ational the low and that's why we have seen the expansion in the jobs figures that we've been looking at low weekly jobless claims numbers indicate low layoff activity that's good news for the employment picture and we've had a very good employment picture for a number of years now industrial production will be announced Thursday morning for the month of October expected to show a gain of 4 tenths of one percent with capacity utilization estimated at 76.2 percent. And on Friday morning we'll get the housing starts number for October the estimate is 1200000 annual rate prior month came in and 1127000 annual rate and keep in mind we're going to be looking at some activity as a result of hurricane Harvey especially in the greater Houston area and hurricane in areas of Florida and as a result of those 2 brutal storms here on the mainland we are looking for some increased activity in the housing market as the process of rebuilding contributes to overall housing sector activity. That's the way it looks going forward we'll return with our guests new with us on money talk. Money Talk. 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Goes to coast border to border in the islands of Hawaii and north to Alaska it's America's Money Program money talk our guest in this segment is Dr Lars Jacobs of the University of Minnesota and author of co-author of fed power how finance win and that's Dr Jacobs thanks for joining us it's great to have you with us thank you good to be with you tell us why you wrote this book you know I was looking around after the financial crisis. For a book that would describe the Federal Reserve in something other than. The. The rescue of the country kind of the Savior I think central banks are essential but also thank the American Central Bank the Federal Reserve have made plenty of mistakes that brought the crisis and I had questions about. The direction it was taking us after the crisis you place the blame for the 2008 financial crisis on the doorstep of the Federal Reserve Well I would say me alone but there was a nonpartisan congressional investigation and others who looked at the fact that the Fed was asleep at the switch at the conditions that led to the financial crisis in 2008 began to build. The former Fed Chair Alan Greenspan actually testified in Congress in the fall of 2008 and said he was in shock disbelief that the system and framework it set up had failed. So of course at that time the Fed chair was Ben Bernanke he now the former Fed chair. Ben Bernanke he. Gets the blame in your opinion for a lot of what happened. Wouldn't just say it was Ben Bernanke. Obviously brilliant man. I think in many ways well intentioned. Working under extraordinary circumstances but I would say was a pattern of behavior by the Fed and what I mean by that is there was just decisions made by the Fed beginning in the 1980 s. And accelerating afterwards to. Allow our financial system to move very quickly into financial zation and the securitization of debt so for instance home mortgages being cut up into new kinds of instruments there was a lot of excitement about that as innovation but if you look at other countries like Canada was that were that were more attuned to the risk of crisis they had put some you know strong stronger restrictions on that kind of change and America was go go go and we saw extraordinary. Markets develop tremendous profits made until things came crashing down around 2007 a knave. I've always been intrigued by the differences between how candidate handles the housing sector and how it's handled in the u.s. As you well know. In Canada you do not get a deduction on your mortgage interest you do not pay a capital gains tax on profits on your home at any level and yet we don't see this Dr in Canada to own your own home that we saw here in the u.s. Especially in the early part of this millennium. There seemed to be a a drive behind getting people to own their own home that it seemed strange in the sense that it really is not that critical it's not that important if you own your own home and yet we had a drive to have people own their own home that letter still point in 2007 where people were allowed to lie to get a mortgage were allowed to get a mortgage with negative amortization payback. Were a lot of the law kinds of things that made no sense how do you how do you. Compare the way it was handled in Canada and of course they never had the housing crisis there to the way it was handled the new Us Well I think that's a very good you know comparison and again I think you go back and you look at the reader which the regulators United States looked the other way or simply didn't do their jobs and all those issues that you talked about the failure of sufficient assets even the kind of cursory capacity to make payment on a mortgage these things were. We're. Certified by finance you know by various levels of people in the finance industry the regulators didn't raise questions it was a complete breakdown the entire system whereas in Canada there's much stricter regulation about who can buy a house and the. Their capacity to actually make those payments so I I put the blame here on on the system and I think we have to ask hard questions about as you are about why it is that Canada beginning about 3 decades ago got out of the cycle of boom and bust where financial system and United States is still in it and I think the concern I and others have is that we've just come out of the 2000 a crisis clouds on the horizon. Our guest is Dr Lawrence Jacobs the University of Minnesota author co-author of fed power how finance wins so we have a situation here where we are told in the United States about the importance of homeownership it's drummed into people from an early age. Do you agree with that for example I mean the incentives that are thrown on top of this go ahead take him or his you can deduct the interest from your taxable income things that's sort go ahead and buy a home and married couple can take up 250-0000 gains under current law and not have to pay any federal income tax on the gain I mean there are certainly plenty of incentives are thrown in there for homeownership Do you agree with those incentives and tell us a little bit about that. Why I think you know these are separate issues to some extent one set of issues about how the financial system works in America and the ways in which. The loans that were made for housing became a type of security that was traded and for which the value that is. Unreliable was not factored in was completely ignored and that led to the subprime crisis that's the that's what precipitated the crisis in 2000 and the issue you're raising is a more fundamental policy question which is why is it that government policy. Prints way through tax exemptions has been so gung ho to encourage homeownership and I think you know a lot of issues you can turn to health care. And other areas you find that you've got to look at the political interests and the economic interests in this case clearly homebuilders are very powerful and influence. In our communities and Washington. And the banks different types of banks are. Are involved was just literally good business and we've chosen to make homes into a financial asset and for some. You know a source of financial speculation you mention clouds on the horizon could you give us a little of background on a common Well you know I think this is well widely discussed and finance circles. You know the underlying growth is Ok but it's certainly. Relatively slow. On the different ways of about that once again we're looking at asset prices that are creeping up and their underlying justification in terms of. What's behind the assets not strong. There's a concern about China whether it's sitting on a time bomb because of loans that have been made that also don't have support. These are some of the factors that I think have got a number of commentators concerned and then you combine that with the fact that the central banks. Which have been our primary most exclusive response the financial crisis their hands are tied a bit because they've already brought interest rates down to 0 or close to 0 so they don't have very much room to maneuver. Our guest is Dr Lawrence Jacobs author of fed power University of Minnesota professor and. One of the things that doesn't get talked about much which I'd like your input on is a fact that Ok we've been growing at 2 and a fraction. For a long time now many many years been growing into a fraction so far the 1st 3 quarters of this year based on the data available so it's an annual rate of real g.d.p. Growth of 2.37 percent which is fairly in line with what we've been seeing for a number of years and. There is a plus side to this that is almost never discussed which is this is a rate of growth that has been sustainable for an amazingly number of years amazing number of years now and which has not led to. A alarming increase in capacity utilization which has not led to an alarming increase in inflation in fact which has not led to any of the the sorts of problems that generally bring in a commie down in other words it's been able to sustain itself at this moderate rate of growth to an a fraction for a long long time and it continues in doing so based on the best projections into next year so. Another side to this would be to say what's wrong with that I mean that's sustainable it's look at look at unemployment in the low fours look at inflation below 2 you know side of that would be this is fine let's go with this what are your thoughts. I think that's a good point and I think again just focusing on the finance sector we're looking at the stock market for instance being at or above the stark highs. And so you're seeing our equity markets continuing to expand some cases quite rapidly. And they look overvalued frankly given the rate of the underlying economic growth. You've also got buildup and leverage you've got in the international system which we are very much tied to situations where there could well be another you know bubble sitting there and we've got a lot of investments abroad and those are the some of the concerns I agree with you I think if we were kind of insular and our economy and Main Street was so tied to finance the story you tell us is a happy one. Now obviously for someone that has penned a book that power that is quite critical of the Fed Reserve activity you would have some ideas to improve the policies of the Federal Reserve but would they be. Well again I want to make it clear in my mind there's no doubt we need a central bank this is not an argument about we have to do away with the Federal Reserve which I know some people view I think it's we need a central bank. To Roger the economy at certain points and when there are liquidity crisis that is when you have a freezing of credit markets you need a body that's going to step in. The reality though is when you look around the world and particularly among capitalist countries they're different types of central banks we've been talking about Canada where. The Canadian system is quite different from ours the they that they have Bank of Canada is not involved in regulation there's a separate. Set of institutions that are in charge of regulation. And their focus is on risk and minimizing the risk and exposure. Of consumers in the and the economy and so Canada you know for instance if you look at the. The penetration of securitization was about a 5th of what it was United States. So I think part of what we need to do in United States is come to terms with the fact. That a financial system. Gets to call the shots itself except when it's in crisis when we have to provide the the rescue it's not a stable system so I think that would mean part pulling the Federal Reserve back further from regulation. One of the responses after. The 2000 a crisis was to create a series of reforms I think some of those reforms of been positive I think they could be adjusted but I think the positive but some of the efforts didn't work and the response by Congress was to make it harder for the Fed and other financial institutions to act when the next financial crisis hits and I think that is going to be a significant problem when the next financial crisis hits which it will. And you know let me just leave you with this question could you imagine the future Congress . Well think something like our. While that was and I would be that would be a tough thing to imagine right now based on what we're hearing out of Congress I have to agree that under present especially the house I can I can certainly sympathize with that thought our guest is Dr along state the daughter of fed power professor at University of Minnesota will return with your calls at 180-934-2221 right here money. This is a court ordered notice current and former Honda and Nissan owners or lessees can receive payments and other benefits from a legal settlement related to allegedly defective to Qana airbags in their vehicles to see if your vehicle is included and to file a claim go to auto airbag settlement dot com or call 188-873-5559 extension 6 that's auto airbag settlement dot com or 188-873-5559 extension 6 I just saved hundreds of dollars by switching to Geico I'm so happy I feel like I can fly disclaimer you will not be able fly by switching to Geico this is against the laws of physics on nature if you find yourself flying Please seek professional and or medical help immediately in the unlikely event you find yourself lying you might be a superhero or a pigeon or a superhero named pig's woman who was bitten by a radioactive pigeon if you are indeed big woman Tycho retains all licensing publishing rights in the event pitchwoman the movie becomes a top grossing Hollywood blockbuster Geico 15 minutes could save you 15 percent or more. 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History why has an Air Force Academy general double down after its own race is repeating hoax will go down the list on Sunday all radio with Matt Dunn Sunday evenings from fine to a top News Talk 7 10 pm us attention investors 2017 is the year of Trump and financial markets are rising at all time highs but economic uncertainty may be greater then after any election in our lifetime you need to hedge against uncertainty that means transferring part of your retirement to physical gold and silver stored where you can actually hold it in your hand it's a perfect time to buy prices are low and expected to climb make Augusta precious metals your personal gold and silver provider just call toll free 8888524788 that's 888852478. Years of a President Trump is coming in for criticism for saying he believes the u.s. Intelligence community assessment that Russia did interfere in last year's election but also suggesting that's not a certainty Mr Trump says he talked to his Russian counterpart about this during their trip to Asia I believe that President Putin really feels and he feels strongly that he did not meddle in our election what he believes is what he believes former director of National Intelligence James Clapper on c.n.n. Cannot have a positive impact on the on the morale of the work force and tells me but I do believe. In my heart that the men and women the intelligence community will continue to convey truth to power even if the power ignores and through a special counsel's examination of potential collusion between Moscow and Trump campaign aides so far has led to indictments and a guilty plea from a trump foreign policy adviser for lying to the f.b.i. C.b.s. News update on Sam let singer. What are my pressures starting to build across the Rockies and plains will be looking at cool dry weather conditions around out this Sunday for the Denver metro area temperatures into the fifty's into early this evening Bronco football drying cool forty's lows the night into the mid thirty's highs near 70 on Monday little cooler again Tuesday weather brought to you by Colorado the realty pay less keep more Colorado flat the Realty dot com meter all just ork your 710 k. 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And us I know you're tired of hearing financial as offering some free book when all you really want is to have your retirement and investment questions answered and chickens Well we're here to help with that give us a call today for a one on one review at 720-457-6844 tune in Saturday's at 2 pm on 710 k. And u.s. Men's group is a financial services firm the offers a broad array of products and services including insurance and new. He slices to Colorado Bob Brinker. This is money. On your radio across America worldwide on the Web It is Money Talk Our guest is Dr Laura's Jacobs of the University of Minnesota author of fed power finance winds we're discussing the Federal Reserve and taking your calls on the toll free line across America if you'd like to join in at 189342221. Dr Jake if you write about the politicization politicization of the of the Federal Reserve and I find that interesting we've had a number of guests on the broadcast that have served at the Federal Reserve including former Vice Chair Alan Blinder of Princeton University who had been a frequent guest and he is always a really going out of his way when I've questioned him on this to point out that the Fed is not political that he was vice chair he was in the meetings he never heard any discussion of politics when he was there he doesn't believe it goes on and yet in reading fed power one gets a different twist on that what are your thoughts. Well let me 1st reiterate that you know people like press are blinder and others are are brilliant and I think they're well intentioned and I don't think it's helpful of think about politics in terms of Democrat or Republican but when you look at the consistent policy of the Federal Reserve which is the for to finance whether it's a matter of Alan Greenspan. Restraining the Fed from regulating the growing clouds of of crisis that we saw burst out in 2008 or it's the secret. Deals that were cut with different parts of finance after the crisis did hit so that the gambles of that finance took were paid for by taxpayers that's what I mean by politics I think that that system is an outrage and frankly it's one of the reasons that we saw Donald Trump running in 2016 on a platform of reining in the Federal Reserve It was absolute extraordinary moment Rand Paul joined it Bernie Sanders joined it and I think we have in this country a real problem where the credibility of the Fed is up for grabs now the perspective that Alan Blinder and others offer is that the Federal Reserve is this independent neutral arbiter they don't have positions but when you look at the consistent pattern of decisions that favors finance that to me is part of the kind of tilt in Canada the consistent pattern of positions of the financial system is to favor consumers. Our guest is Dr Lawrence Jacobs University of Minnesota author of fed power. If we accept the premise that the Federal Reserve has lost legitimacy and credibility through its actions since the financial crisis. Where does that leave us going forward I'm concerned to be honest and it's one of the themes of the Fed power is that we need a central bank that can respond to crisis but the pattern of behavior and the favoritism of the Fed for finance and not for the 13000000 homeowners who are hit by by the crisis puts us in a spot when the next financial crisis hits don't think the country's going to be able to respond in the way that it needs to you know let me give you an example of what I'm talking about a can of the they didn't have a financial crisis because their financial system prioritises putting a limit on the risk to consumers and in England the Bank of England which is a pretty conservative back also stepped in to try to quell the financial crisis it did offer rescue packages but it did something that the American Central Bank Federal Reserve said was not possible which was to attach conditions to its support when you have a credit market that's frozen you've got the central banks stepping in saying we're going to give you credit that's a very strong bargaining position and a can of the what the the Bank of Canada said was we're going to give you credit. In a time when you cannot get credit and exchange you've got to turn around and offer loans or renegotiate loans with consumers and small businesses that are faced with foreclosure and you've got to take certain steps with regards to executives pay now all of what I just described we were told America wasn't possible but it turns out it was possible by other central banks that weren't quite as beholden to finance. No Larry before as you well know before the financial crisis went into full bloom we had a couple of things that were very notable that happened in 2007 you'll recall that in March of 2007 there was what was perceived to be basically a Federal Reserve sponsored bailout of Bear Stearns where the Bear Stearns shareholders received I think it was about $10.00 a share for a stock that have been trading in triple digits a while prior to that and also they received bailout in association with the takeover by j.p. Morgan of the remnants of Bear Stearns along with a collar that Jamie Diamond received as you know at j.p. Morgan limiting his losses to a finite amount so that that was a big deal that was March of 2007 that that happened no. Let me make that March of 2008 right that's right that was absolutely That was March of 2000 a member that because someone had said to me a hedge fund or had said to me this will probably surprise you if you're surprised me funder it said to me in the summer of 2007 before the crisis it hit what I would think if he told me that Bear Stearns was going to go bankrupt Well I . Didn't pay a whole lot of attention to that but basically that's what did happen in the following March so we had the March deal with Bear Stearns the Fed j.p. Morgan and everything that went with it but then several months later 56 months later we had the fiasco with Lehman Brothers where the Fed basically said well we can't find anything in our book at Trixi or for you they went under in the financial system within 24 hours was gone so with the credit markets frozen around the world I want to ask you going back to those early things March of 8 Bear Stearns. Autumn of 8 the Lehmann Brothers the buckle September that was. What do you think mistakes were made there because those were the stepping stones into the abyss. Think the mistakes were made I think they were made before we got to that point. But just picking up on those moments we now have the minutes from the Federal Reserve's governing board and we know from those minutes with how clueless the Federal Reserve was about what was happening again and again you see Governor saying this is not a crisis is something we'll get over. And the concern was about how to present this to the country is just business as usual and you know for people like Alan Blinder who say look the Federal Reserve is this really magnificent masterful organization Ringo's minutes just makes it clear how how often the Fed got it wrong during that whole period and I would point the finger earlier why the Federal Reserve allowed. This. Kind of gambling that occurred with sub prime loans and other kinds of securities that have really almost no value that that is the number one problem and frankly on that issue among serious people I don't think there's much dispute that the Fed along with other regulators missed the boat. Now Professor turning the clock back even further back to November of 1909 when then President William Jefferson Clinton signed the bill that did away with less Stiegel. Than a lot of criticism directed at the removal of less Nagle some will say that well you know they put on blessed nickel back in the 1930 s. That are really good job for many many decades and then within a few years after they took it off look what happened others will say oh well Glass Steagall that had nothing to do with what happened but at the same time the notion of separating commercial banking from the gambling casino investment banking aspect does seem to make some sense where your thoughts. Yeah I think the fact if you look at the regulations that were put in place after the 2008 crisis there were attempts to kind of get the genie back in the bottle and I think to some extent these things are never perfect they need to be worked on there have been some some progress to begin the slow down some of the speculation the key issue here isn't that it's a major tension you've got financial markets which are in the business of making money but how do we use that that motivation and drive to serve the greater needs of our country for finance and for a stable supply of finance that that's the key issue. And America we just haven't done that and we keep kind of coming in and out of crisis whereas other countries have found a way to avoid it now the main argument you hear from people like who who see the Federal Reserve as really very positive force is let's be fair here because the Federal Reserve intervened and we avoided a Great Depression and that was certainly a possibility in 2008 and I think that's true I think that needs to be acknowledged for a straight up that all of us benefit from avoiding a Great Depression but the next question is not asked which is Did everybody gain the same. And that answer I think is quite different if you were in the top one percent your assets and your income up bounce back and exceeded where you were in 2007 and. But for many working Americans. The majority who had assets and housing or or perhaps in retirement they're just barely getting back to where they were in 2007 and some aren't that's the issue which is why is the system consistently works so well for finance and not for most Americans and that's peculiar America well. I think an argument could be made that we have a new kid on the block. And the new kid on the block has really stepped up to the plate post 2008 and that new kid on the block that's tainting everything is globalization and that's a really big deal because it has a direct impact on wage competitiveness and c.e.o. Decisions on how they're going to run their companies I think globalization might be the answer as to why I mean you're absolutely correct that along with some other factors why so much has flowed to the the so-called one percent at the same time. And the solution to questions like that is extremely long term I mean right away you have to jump into well we have to give everybody the same educational opportunity we have to give everybody the same educational ability and that's just not the case yes and I agree with you that these are structural questions but I think if you can just focus on the financial sector what we see in America and we don't seem kind of other countries is that the financial system. Intensifies and widens. Some of these disparities that we're talking about and Canada the financial system is not as prominent and the economy doesn't make up as much of the kind of corporate profit profile that you see in the United States America's increasingly built its economy over the over finance and over the tremendous profits that are generated from it and that that doesn't help. People. Kind of work for a living there's some estimates suggest things are increasing reliance on the finance sector actually parts overall economic growth Dr Lawrence Jacobs is our guest author thread power Professor new University of Minnesota I think you made a really good point earlier when you as the the question whether tarp could get enough votes to pass Congress and I certainly think that that's a really good question and I'm very doubtful right now that it could get enough votes to pass Congress being the acronym for various. Solutions such as the toxic as it rescue program or whatever word you want to put behind those letters will do. Want to ask you Larry without talking what do you think would happen well you know President Bush. The treasury secretary and Vice President Cheney all sat down with congressional leaders and said if we don't pass tarp we will have a great depression. And I think they were right. The question though is again it's not that if the question is not should we have responded we have to the question is who benefit who are the winners and losers and I think at this point. You know many Americans. Have a set and you see this in polling that's been done have a sense that the Federal Reserve is on the side of finance that's the problem and it's really created in a row Jand of the credibility of Federal Reserve and all sorts of kind of hand-waving about how great the Federal Reserve is it's not going to reverse that I go back to Donald Trump because his campaign particularly at the end targeted the Federal Reserve as part of this kind of. Global System that was hurting everyday Americans and he has right now tremendous power along with Republicans in Congress to reshape what the Federal Reserve looks like and I think the question of the moment is what direction is that going to go on. The president has had a change of view he has been making very positive comments about the Chair Yellen he has just appointed subject confirmation a new thing here Jerome Powell who many see as a clone of Janet Yellen one wonders as he had a change of thinking about that yeah I think that that's possible now might well reflect the fact that the Fed is so well established in Washington and that Donald Trump has relied on finance markets know them well on the other hand there continues to be strong support in Congress particularly in the house for some pretty significant changes one of the people talked about for. Fed Chair Professor Teller from Stanford has a pretty strict formula for determining these to the. Promenaders around which the Fed can determine interest rates rather and really strip it of a lot of it's in the pendants that there's still so quite a bit of support in Congress there been bills passed out of the house that try to legislate that then you've got a push for auto thing which President Trump has supported as a candidate there's talk about making the New York federal probe a Federal Reserve president subject to Senate confirmation I mean these are really very significant organizational assaults on the Fed as success and maybe responding to what we're talking about which is the drop in credibility people don't trust the Fed and in my view there's grounds for that. Our guest Dr Lawrence Jacobs University of Minnesota professor and author of Power how finance wins Larry we thank you for your time we appreciate your insight and congratulations on this new book We wish you continued success great thank you for having me this is money talk. Money Talk. 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