Combat the next recession . Well, this is something that researchers are looking at and are talking about. And for the reasons you gave, i think it is an appropriate subject for research and for consideration if we remain on a low Interest Rate environment for a very long period of time. Its not something the fomc is actively considering. Not at this time. Are you open to it . At the moment i think its not a priority for us to consider that right now, but i would not i would not say never, that its not something i think its appropriate for researchers to consider the cost and benefits of it carefully. Its not something were actively looking at but i wouldnt say its something we could never look at. We are focused on trying to achieve our 2 objective. We want to emphasize 2 is not a ceiling on the inflation rate, its the target where we would like to be that inflation can be above and below 2 at different times. We dont expect to always be there. I think weve realized are you concerned . The basis of my question is you dont have enough bullets in your most powerful weapon. Are you not concerned at all . I am concerned, and i gave a speech at jackson hole that address this is issue. First of all, i think we may be required to use the same kinds of tools we used during the crisis in the event of future downturn and i emphasized that, that those need to be permanent parts of our arsenal. Beyond that, its important to do research on further things. I emphasized congress should also consider whattist role should be. Thank you. Last time you were here i asked you when does america get a raise . When does what . When does america get a raise. I want to go down this road with you again briefly. Obviously the economy is moving, although not there in a healthy direction. Car sales are up, home sales are up. Median Household Income was up fairly materially. Wage growth still stuck, i think, at about 2 1 2 . Even in the last weak recovery wage growth was 4 . Chairman yellen, when does america get a wage . Wage growth has increased a little bit. I think as the recovery progresses we will see some more pick up in wages. But productivity growth is a very important determination of real wage growth or inflation adjusted wage growth. If nominal wage growth were to pick up and inflation picked up in tandem, that wouldnt be a real wage increase. What we want to see is wages going up without its involving inflation going up. Ultimately, the size of those paycheck increases in the long run are driven by productivity growth. Productivity growth has been very low. And i think thats one of the things that is holding down the improvement in living standards. So we are seeing some signs of a pick up, but ultimately if productivity growth doesnt pick up, faster nominal wage growth would prove to be inflationary. Thats a fundamental driver. What would u 6 currently stuck at 9. 7. I dont have a definition. Its higher than it was before the crisis, even though u3 is down to normal levels. I think that does signify some time expired. Chair recognizes gentleman from pennsylvania. Thank you, chairman. I want to touch on one thing following up on mr. Mulvaneys question. I think you testified needing Legal Authority in the event the fed wanted to purchase corporate equities. Yes. I said we do not have. You would need additionally before you did something. Same hold true for Corporate Bonds . Yes. We cannot. Im concerned about the level of influence fsb has on fsoc designation process. In a letter to g23 finance minister and Central Bank Governors mark kearney made clear members had a, quote, ongoing commitment to implement fsbs policies and that, quote, full, consistent and prompt implementation was section. So many dismissed as incobbs convention proceeds, fsoc operates in the spirit of the words. Three identified as gsiis have also been designated by fsoc for fed supervision. With that in mind i wanted to ask you a few questions about fsb and fsoc decision making. What is the role of the u. S. Members of fsb in considering whether to designate Insurance Companies under the gsii process . Well, a number of agencies take part in in fsb, Federal Reserve, all members of fsb and engage in their work. Under f sflt b charter countries commitment to standards. What steps has u. S. Taken for fsb, u. S. Insurance companies as systemically important . None, because fsb designation have no impact in the United States and United States have to go through own rule making process. Fsoc is separate and focused on slightly Different Things than fsb analysis and entirely separate processes. Did the Federal Reserve support fsb and metlife as gsiis before fsoc designated them . The Federal Reserve only joined aias that played a role here in 2013. And to the best of my knowledge, we didnt participate in their analysis with the basis for original designations. But the Federal Reserve does participate with the fsb, yes . We may we do participate in the fsb. In the process of fsb designating these as gsii, what would the Federal Reserves position have been . I believe that the i have to check this out. I believe the fsoc designations of these firms occurred before the final designations by fsb but i have to look at that more carefully. We want to follow up on that. My understanding it happened fsb designated they will and fsoc designated them. It seems if you agree to designate a u. S. Company as global significant under fsb regime, that would end up influencing the Company Designated as systemically important within the United States. Wouldnt you agree with that . Well, as i said, the fsoc process is separate. I believe that the fsoc designations took place before the list of gsiis was put out. Could an fsb gsii designation be considered an other risk factor under section 17 of the dodd frank act . Im sorry some of could an fsb gsi designation, if fsb des nays Insurance Company as gsii, could that designation be considered an other riskrelated factor under section 113 of dodd frank act . Not to the best of my knowledge. Yield back, mr. Chairman. Time of the gentleman has expired. Id like to thank our witness for her testimony today. All members will have five legislative days within which to submit additional written questions for the witness to the chair, which would be forwarded to the witness for her response. I would ask our witness to respond promptly as you are able. Without objection members will have five legislative days to submit extraneous records to the chair for inclusion in the record. This hearing stands adjourned. Cspan3 live on Cyber Threats to voting and whether they are vulnerable to hacking. Oversight subcommittee on Information Technology will hear from officials with the department of homeland security. The u. S. Election Assistance Commission and georgias top election official. That starts 2 00 p. M. Eastern live here on cspan3. Leading up to tuesdays debates between senator tim kaine and governor mike pence, we look at past Vice President ial debates on cspan starting with 1984 between george h. W. Bush and geraldine fer ara. You can walk around saying things are great. If thats what weve been hearing, weve been hearing that on the commercials for months, i expect the americans to believe that. Ill become a onewoman cheering squad and well start tonight. They delivered 21 1 2 Interest Rates. They delivered what they call malaise. They delivered Interest Rates right off the charts. They delivered take home pays, checks that are shrinking and weve delivered optimism. 1988 debate with senator dan quayle and texas senator lloyd benson. I have far more experience than many others that sought Vice President of this country. I have as much experience in the congress as jack kennedy did when he sought the presidency. Senator, i served with jack kennedy, i knew jack kennedy. Jack kennedy was a friend of mine. Senator, youre no jack kennedy. The 2008 Vice President ial debate between delaware senator joe biden and Alaska Governor sarah palin. Lets commit our selves, every day American People, joe sixpack, hockey moms across the nation. I think we need to band together and say never again. The middle class need relief, tax relief. They need it now. They need help now. The focus will change with barack obama. Watch saturday night at 8 00 eastern on cspan and watch any time cspan. Org and listen 8 00 p. M. Eastern on cspan radio app. U. S. Customs and border commissioner Gil Kerlikowske testified on capitol hill yesterday about challenges to enforcing u. S. Customs and trade laws. This hearing on trade is just over an hour. Good morning. The subcommittee will come to order. Welcome to the ways and means trade subcommittee hearing often enforcement of trade laws. Id like to expend a special welcome, warm welcome, to the honorable Gil Kerlikowske. I think most members know gil and i were partners in the city of seattle a number of years ago. Years ago. Gil was the police chief in seattle, and i was the sheriff in king county, which is seattle is the county seat for king county. So we partnered on lots of things prior to coming to the jobs back here that we hold in washington, d. C. Its been a pleasure working with gil and to have him here this morning. As you know, hes the commissioner of the u. S. Customs and border protection. And brings a lot of experiences with him that helps him lead that team. Today were going to talk about robust enforcement of our trade agreements and trade laws. They are essential to ensuring american businesses and workers are treated fairly by our trading partners. Strong trade enforcement goes hand in hand with the opening of new markets through trade agreements. Its part of our commitment to the American People that we dont just assign trade agreements and let our manufacturers, farmers, Service Providers and workers fend for themselves. If foreign competitors dont play by the rules and ignore their obligations, we will call them out. U. S. Customs and border protection, cbp, plays a key role in ensuring our trade agreements and our trade laws are enforced. And that legitimate trade is facilitated. Customs serves as the nuts and bolts of trade. And a strong Customs Service is vital to our competitiveness, safety and security. Over the years, the volume and complexity of trade has grown, and the challenges that we confront such as stopping the invasion of antidumping and countervailing duties and protecting u. S. Intellectual Property Rights have grown as well. As we face increasing competition around the world, we must keep legitimate trade flowing by focusing on our enforcement efforts of high risk trade. The trade facilitation and trade enforcement act, or the customs bill, which became law earlier this year, was the result of many years of hard work and commitment by the members of this committee on both sides of the aisle. In it, we established the Necessary Balance between trade and facilitation and trade enforcement that will help american businesses succeed and keep us competitive. Streamlining legitimate trade will increase u. S. Competitiveness in the global marketplace and create jobs here at home. The customs bill reduces paperwork burdens for low Value Shipments by increasing the de minimus threshold where paperwork is not required from 200 to 800 as well as for the u. S. Goods returned and for residue of bulk cargo contained in tankers. These improvements save time and money for our small, medium and Large Businesses that drive our economy. The customs bill also modernizes and simplifies duty draw back. A popular Job Creating Program in place since 1879. To increase accountability, the customs bill also strengthens and establishes reporting requirements for existing cbp trade facilitation programs such as the centers for excellence and expertise, trusted trade programs and the automated commercial environment. These programs cut the red tape in government, reward businesses for good citizenship and streamline trade. The customs bill reporting requirements allow us to do our job as the committee of oversight, of ensuring that cbp stays on track with these programs, strengthening enforcement of u. S. Trade laws is the other major pillar of this customs bill. Enforcing u. S. Intellectual Property Rights and antidumping and countervailing laws prevents our competitors from gaining an edge by cheating. The customs bill establishes tools for cbp and holds it accountable to clamp down on invasion evasion of antidumping and countervailing duties. Enhanced targeting of highrisk shipments by requiring information from brokers and strengthen internal controls over new imports. To protect intellectual property, the customs bill requires the cbp to provide right holders with samples to help them determine if imported products are counterfeit. I want to congratulate my fellow subcommittee members and thank them for their hard work on the customs bill. Former trade subcommittee chairman teaberry who led our efforts together with chairman brady. Dr. Vistani for his tireless efforts on the enforce and protect act. Mr. Marchand for his work on reducing paperwork burdens for residue in instruments on international traffic. Mr. Young for his good work on his de minimus bill and the efforts to require country of origin markings on certain goods which is common sense approach to increasing transparency. Mr. Jason smith and ms. Sanchez were also very constructive in working on the enforce protect act. We also worked closely with mr. Blumenauer, mr. Kind and others on the Enforcement Fund and they joined several members in combat force labor. And Ranking Member rangel was instrumental with regard to so many of the trade decisions. Today well have an important discussion about cbps efforts to implement this you critical law which if carried out effectively will enhance our competitiveness, level the Playing Field for our businesses and prevent our competitors from gaining an unfair advantage. Just on another note, mr. Rangel, our witness today has to catch an airplane. So were going to be going to threeminute questions. I yield to the Ranking Member for his opening statement. Thank you, mr. Chairman, for calling this hearing. Commissioner, we recognize your tremendous responsibilities and we are here to help for you to point out how you can be more helpful especially during crises that were going through. We all are concerned about the forced child labor law. We understand there hasnt been enforcement over 16 years. Antidumping and intellectual property, the chairman has actually covered that. We recognize that you have to leave. We will keep our questions short and hope that you might do the same with your responses to facilitate your departure. And we join with you in support of the hearing, and how we can be legislatively helpful to you, chairman. I yield back. Thank you mr. Rangel. As i said, today were joined by one witness, commissioner of u. S. Customs and border protection, mr. Gil kerlikowske. And as i said, were going to limit questions to three minutes. Hes going to shorten his opening statement, and mr. Kerlikowske, you are recognized. [ inaudible ] check your microphone. Am i on . Okay. Chairman reichert, Ranking Member rangel, members of the subcommittee, its an honor to be here with all of you. And its an honor to talk about cbps role in enforcing what is an incredibly immense and complex area of u. S. Trade. We enforce 500 laws and regulations on behalf of 47 federal agencies. After the irs, we collect more money from the federal treasury than any other organization. And we understand and recognize the importance of our enforcement efforts and enforcement has been my entire background before coming to cbp. Illegal and fraudulent trade practices threatened our economic competitiveness, the livelihood of american workers, and consumer safety. I certainly want to thank the members of congress, and particularly this committee, for the trade facilitation and trade enforcement act. Cbp has been around since 2003 and has never been authorized. And now having the authorization and our regulations and rules all located in one place along with our increased Enforcement Authority is a huge milestone for us. The numerous parts of the act are complex. Were very engaged in fulfilling every measure of the act and the number of reports that congress has required. And during the entire time that this process went on, i think the collaboration and the cooperation of the subject Matter Experts that cbp has in trade have been very important. We have prioritized the policy, legal decisions, changing resources within our organization to meet this law, and thats been very important to us also. The chairman mentioned a number of the changes. De minimus, the fact that you have approved a group of individuals that report to or work with the commissioner regularly that represent the trade stakeholders, and thats all been important. I certainly acknowledge, despite our best efforts, that were delinquent in some areas of the deadlines on the act. But were working diligently to put all of that into place. Going from not having authorization in 2003 to having this is a great step forward. So thank you. Thank you. And well go to questions quickly. Just a couple from me. The customs bill provides cbp with new tools to b