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Lehrman Institute Chairman Lewis Lehrman, FBN’s Stuart Varney and WSJ’s Jon Hilsenrath on the Federal Reserve’s handling of the economy.
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Well joining us now for a look at Americas -- Future John -- -- Chief economics correspondent for the Wall Street Journal.
Louis -- and former Morgan Stanley managing director or chairman of the -- institute.
Answered Barney host of morning company here on the Fox Business Network gentlemen thanks for being here -- -- return to you first.
There seem to be electricity in the air today as they Fed Chairman was speaking.
Are there any surprises.
Am all for you.
Well they did that the thing that struck me was that the Fed reduced its forecast for growth not only for 2011 but also for 2012.
Yeah I think they're starting to get their hands around.
The idea that this recovery is just going to be a very bleak one -- they've been more optimistic about the growth outlook -- A lot of private forecasters and they're starting to come with that to grips with the idea that the economy just isn't producing the kind of growth.
That they want to see -- that we need to get unemployment down.
Stuart I think it was a disastrous day for the present if you take the very very big picture Kia.
Ben Bernanke essentially said look Mr.
President it is not a bump in the road this is a trend towards a week great column -- The CBO is telling is that the debt situation is flat out.
Out of control and the latest polls show that voters are not enamored with the president's economic policies they think we're going in the wrong direction.
-- picture a disastrous day politically and economically.
For President Obama.
And won't tell us here in your judgment what you make of this I mean we have -- Fed Chairman.
It just as he has been described.
Not not particularly taking note of what has been a two year experience where -- weaker than expected.
Recovery there's nothing new in this this mood that -- -- confronting right now.
And there seems to be a total lack of at least expressed.
Sense of direction for the economy from either.
The monetary side or the fiscal side.
Well the Fed Chairman was very very confident when he launched IQE.
One.
And equally confident when he launched -- Thought if we through several trillions or even tens of trillions of dollars.
At the economy by buying treasury securities among.
Insolvent mortgage backed securities that would launch not only a booming economies and in the commodities -- boom in the equity.
But that -- trickle down.
And that is I remember it was occasions he used to say in the trickle down economics.
Don't work.
And they ended the chairman himself has has been surprised it was also surprising -- CM.
That the move the reporters financial reporters were not more rigorous and there requesting.
Of the chairman where I do agree with -- this was not a good day.
For Obama.
In general nor was it a good day for the Federal Reserve.
Incidentally has CDO.
Estimate on the level of government debt is a fiction of the brain.
-- -- -- the level of debt that we are on a new cooked on the News Corp.
Wire you see it almost fifteen trillion dollars right and they estimate that 30%.
Less than that.
Because they they rule out the Social Security trust funds among other.
Looking over to the publicly held precisely yeah precisely look at that I scrutinize contrivance is -- -- -- fiddle around with the numbers and confuse everybody but let's get -- straight.
If I had quite -- -- if you can -- -- -- -- -- total debt is fourteen point three trillion dollars that is approximately the same size as our GDP.
Is not 70%.
Is debt to GDP it's almost a 100% of that which you brought up that -- Greek levels doesn't offs.
Approaching and then close and after -- rethink worry that -- dollar just about everywhere and join -- about to say I was just.
To say no matter how you measure it whether you include the the that this stuff that the debt that the government issues to itself for not.
It's very high you know and clearly there's a lot of attention being focus here in Washington on.
What to do about that the hard part is getting there all the parties together to -- to agree on some -- long term plan that.
It is getting the parties together -- created this -- -- has been getting parties together and participating in.
In public policy for quite some time.
Have you ever seen such an intractable.
Problem.
Apparently being resisted by such stubborn.
Also opposing political parties.
I have.
It was during the era of Jimmy Carter and the great stagflation.
And inflation of the 1970s.
And what Jimmy -- He had to use -- French word to describe -- call that whole period on the list for which he wasn't responsible so have I seen it before yes I have Cingular.
Did you -- what did you -- senator -- Bright at all CBO announcement percent of -- that what what we'll -- we'll deal with deficit might right now we must deal with jobs and -- we need more infrastructure projects -- need more spending we must get jobs back on the way to do that is keynesian economics I don't think that good senators come very far -- -- I would say.
Well authorities for had a very short -- for very long period tired.
At least -- conception.
