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This program was made possible by the corporation for public broadcasting. And by contributions to your pbs station from viewers like you. Thank you. Woodruff in eastern afghanistan, at least 89 people died in a suicide car bombing today. Scores more were wounded. The powerful blast rocked a crowded market in paktika province, near the pakistani border. More than 20 shops and dozens of nearby vehicles were destroyed. No one claimed responsibility. The taliban put out a statement denying any involvement. Ifill the parliament in iraq has finally taken the first step toward forming a unity government, in the face of a sunni insurgency. Lawmakers today chose a sunni moderate, salim aljubouri, to be the new speaker. Its unclear whether sunnis, shiites and kurds can reach a larger deal on naming a new president and Prime Minister. Woodruff secretary of state john kerry returned to washington for consultations today, claiming tangible progress on curtailing Irans Nuclear program. But, he also acknowledged iran and six world powers remain far apart on reaching a longterm agreement by a july 20th deadline. We had extensive conversations, in which we moved on certain things. However, there are also very real gaps on other key issues. What we are trying to do is to find the way for iran to have an exclusively Peaceful Nuclear program, while giving the world all the assurances required to know that iran is not seeking a nuclear weapon. Woodruff irans foreign minister suggested his country is open to extending the talks for another six months. Ifill a fastmoving typhoon hit the northeastern philippines today, forcing 300,000 people to evacuate. The storm made landfall with sustained winds of 80 miles an hour and a storm surge of 10 feet. Local officials warned thousands of homes may have been damaged or destroyed. Another typhoon, haiyan, ravaged the philippines last november, killing at least 6,300 people. Woodruff in russia, moscows morning rush hour turned deadly when a subway train derailed, killing 21 people. More than 130 others were injured as three cars ran off their tracks in a tunnel. Investigators initially blamed a power surge, but later said that was not the case. Several officials ruled out terrorism as the cause. Ifill a bill to shore up the federal highway fund won approval in the house of representatives today. It would cost 10. 8 billion, and keep the fund solvent through next may, while lawmakers work on a longerterm fix. A similar bill is pending in the senate. A federal Appeals Court has ruled again that the university of texas may continue considering race in undergraduate admissions. A white student who was denied admission, abigail fisher, had sued over the practice. Last year, the u. S. Supreme Court Ordered the Appeals Court to take another look at the case, which led to todays ruling. Fisher said shell appeal again. Woodruff a big merger is in the works in the world of big tobacco. Reynolds american today announced a deal to buy lorillard for 25 billion. Theyd create the second largest Tobacco Company in the u. S. , behind altria. The deal is subject to approval by federal regulators. Ifill wall street failed to make much headway today. The Dow Jones Industrial average gained five points to close at 1,760. But the nasdaq fell 24 points to close at 4,416. And, the s p was down nearly four points to close at 1,973. Woodruff the Ebola Outbreak in western africa has now killed more than 600 people. The World Health Organization reported the new toll today. It said 68 people died in the last week alone in sierra leone, liberia and guinea. Health workers also confirmed 85 new cases in that same period. Ifill more americans have alzheimers disease and other forms of dementia than ever, 5. 4 million. But Boston University researchers reported today, the overall incidence of dementia in the population has actually dropped 44 in the last 30 years. They credit better education and health care. Woodruff pulitzerprize winning historian and author James Macgregor burns died today at his home in williamstown, massachusetts. He was active in liberal Democratic Politics and wrote biographies of thensenator john f. Kennedy and franklin roosevelt. His second volume on roosevelt won the pulitzer for history. James Macgregor Burns was 95 years old. Still to come on the newshour what the Federal Reserve bank says about the state of the u. S. Economy; plus, could brooklyn hipsters help save the middle class . The challenges to brokering a ceasefire with hamas; efforts to bring new technology to neonatal care in vietnam; and, the story of a burglary that uncovered f. B. I. Surveillance efforts. Ifill its a tricky time to be in charge of the nations central bank. The Federal Reserve is winding down an unprecedented and potentially risky bond buying strategy designed to set the economy back on course. But every sign that the nations prospects have finally turned the corner are offset by mitigating economic nbers. That was the backdrop for the fed chairs semiannual trip to capitol hill today. Although the economy continues to improve, the recovery is not yet complete. Ifill after just five months on the job, Federal Reserve chairwoman janet yellen was measured in her semiannual assessment. Important progress has been made in restoring the economy to health and in strengthening the financial system. Yet too Many Americans remain unemployed, inflation remains below our longerrun objective, and not all of the necessary financial reform initiatives have been completed. Ifill yellen told a Senate Hearing the fed remains on course to end a Stimulus Program of monthly bond purchases in october. But, she gave no indication of when the central bank might begin raising a key shortterm interest rate. Its been near zero since december of 2008. We have in the past seen sort of false dawns, periods in which we thought our growth would speed, pick up and the labor market would improve more quickly. And later events have proven those hopes to be, unfortunately, overoptimistic. We need to be careful to make sure that the economy is on a solid trajectory before we consider raising Interest Rates. Ifill underscoring that point, the economy has been sending mixed signals lately. The National Association for business economics now estimates growth will be just 1. 6 for 2014, down sharply from earlier estimates. On the other hand, unemployment dropped to 6. 1 last month, beating expectations. Yellen played down any fears of a surge in inflation today. And she said fed leaders are watching for any bubbles in real estate or stock and bond prices. But she said, so far, prices remain in line with historic norms. Yellen is scheduled to testify to a House Committee tomorrow. Ifill we get a closer read on Janet Yellens remarks and the broader economic climate with from diane swonk, senior managing director and chief economist for Mesirow Financial, a diversified Financial Services firm based in chicago and greg ip, u. S. Economics editor of the economist. What did you read into Janet Yellens overall comments today . She is somewhat optimistic about how the economy is making progress but not the time is right to start raising Interest Rates. She pointed out the Unemployment Rate is still too high at around 6 , they prefer it to be 5 and ininflation is still too inflation is still too low. They would like it to be 2 . It seems as most of them still would like to keep Interest Rates near zero. That said, things are Getting Better quickly enough that they can retire their more complicated program of stimulating the economy by buying bonds. That quantitative easing will be over by october. Did you hear, diane, in her statement,. Appealing to Financial Markets and trying to plain explain to them what shes doing. I think thats important, she puts a human face on unemployment. She talks to the people who were unemployed, people in her family, and Collateral Damage of long term unmployment and the economy has a long way to go to heal enough to reengage particularly what she calls the prime ageearners those 35 to 44 year olds, to reengage in the labor force. Those are really important things to her that she brings to this the reality that most americans feel and that is the reality, the economy has improved since the worst days of the greatly recession, but too many are left behind. Its improved a lot for a small number of people but not enough for a large number of people. Greg, she worried a little bit about wage growth, First Quarter weakness, a lot of people have talked about that and also concerns about inflation which never go away. Sure. I think one of the things that she and her staff are puzzling over is the economy looked very weak in the First Quarter, it actually contracted. In june it looked well. We had the best growth rate in a long while and we saw Job Vacancies go up. What could explain . Well, it might be the productivity of our workers isnt what it used to be. It might be that unemployment, a lot of people who have lost their jobs have gone forever, they have retired, gone on disability benefits. If this is true, one thing she has to be careful about is that the economy has less slack in it than she thought, inflation could be a problem before she expected. The reason she brought up wages is she thinks, if there really is a problem with economy running out of workers we ought to see wages being bid up and that is just not happening. Between those conflicting signals for now she is siding with the weaker wage growth and saying that is the reason not to raise rates now. Would it be fair to expect that Interest Rates at some point would be able to begin to rise again diane. Strong enough economy for Interest Rates to rise again. She also brought it up in i another context. Lower productivity rates, mean lower Interest Rates for longer and thats something she stressed there is when the fed does begin raising Interest Rates if we dont see a real pickup in productivity growth which we really need out there the fed wonting raising wonting raising rates as quickly as we want it to. The fed will be very cautious before they raise rates. They would love to be able to do it because the economy is too strong. When they do raise them though they are going to go very gradually and very cautious. Because they dont know where we are in that spectrum that greg noted betweenstagnant wage growth, stagnant productivity growth. She brought up the secular stagnation argument, that Larry Summers has brought up. Ironic that Larry Summers, once considered as chair of the Federal Reserve was within the Federal Reserve as well. She talked about false donees. Explain what she meant by that. This has been a disappointing recovery, gwen. At the start of each year we will often get a burst of strong growth and then it peters out. What youve heard from her is the experience of those disappointments. Its important for the fed not to react to a few months of good news. It might fade away. What one way the fed will pursue is take a risk to move too late, rather than too early. If they move too early the risk is they will force the economy back into recession and they dont have any tools to get us back out. If they move too late they might have an inflation problem but they know how to deal with inflation. Diane does the fed have a different role than it did prerecession . It does have a different role. One of the reasons it was created, that said the gis on Financial Stability is very monitor because it is now very much a part of the feds job in overseeing the overall Financial Markets, the Financial Stability board that the fed is on. The fed is in a different place than it once was, well over 4 trillion before theyre done with this Current Asset purchase program, i agree 100 with greg, they are more willing to err on the side of the economy a little bit of heat is a lot easier to deal with than a frigid cold. After the winter we had here in chicago that is absolutely the case. Diane swonk of Mesirow Financial and greg ip. Wooduff gwen just gave us a good overview of the how the overall u. S. Economy is faring. Lets take a look at a much smaller sector of it. It involves those ever increasing number of small businesses, shops and startups around the country that are a bit hipper, more skilled, locally based and creative in their approaches. But as popular as they may be, are they generating more jobs . And wellpaying ones . Our economics correspondent, paul solman, explores those questions and others, part of his reporting on making sense of financial news. Brooklyn new york. Back water burrow to capital of cool and supposedly new rate breed of jobs. Signified in part Single Source chocolate bars sprinkled with chocolate bars from the coast of maine and grandma lalas secret recipe. All natural, all hand made. Helping house this corner of the new socalled artisan economy, the old pfizer factory in brooklyns williamsburg. Located by the new pharma giant, a business incubator, house to dozens of startups. Viagra was once concocted. And combucha, a different kind of pick me up. E based probubiotic drinks. Down the hall, david corel, peoples pops. Corelle being,31, majored. Made it not mainstream media. I was a researcher for diane sawyer. Why did you leave . Covering the news, you new what was coming. The crash of 08 he means. Luckily for corelle, he and two friends had been tinkering with an artisanal alternative. Crafted her Animal Rescue to a collar business with a message. If you see a dog walking down the street and you see the dog with a leash, found by, then you know it was adopted. I still work a second job but everyone here is making a living. Now these days startups expect a decent incubator to sport a ping pong table. I learned how far my game has fallen by sparring the command who helps buy and transform the pfizer plant. We have over 60 artisanals, we are talking about a lot of College Educated people who have fought through this problem and made a financial decision to take care of their own future by building a business that they are passionate about. Whats the problem with their future . The basic problem is the decline of what was the traditional middle class jobs the hollowing out of the middle of the economy and trying to find upward mobility for the typical american. And its not just blue collar jobs says larry calfs. The bottom half of College Graduates have been just as effective as the top half nonCollege Graduates. They were the middle management jobs, sales jobs, a lot of those were exactly what new Information Technology is very good at replacing. But the artisan economy offers other options. Not just in small scale production. But also in services. So if we had bed bugs, this would get rid of them. This would kill all the stages of bed bugs. Meet my artisanal exterminators. Proprietors of green planet pest control. Both collegegrads, none ever envisioned a career in extermination. When i finished my undergraduate, basically i didnt have a plan what i wanted to do. Todd mcnamara was a business major. Tried his hand at selling stocks. I didnt like watching numbers bouncing around, calling clients and pretending like i liked them. Instead, the would be biologist and businessman are content to turning couches into killing fields. Did they need college with that . I couldnt have done that without graduating college. Killing the bugs is the easy part. The daytoday operation. I actually think a very strong liberal Arts Education is going to be more valuable in the future. How well you deal with unstructured problems and how you deal with new situations thats really key. Kerry mills got so cre