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Federal Reserve chief Ben Bernanke -- offering no new plans to boost the economy pump more money.
Into the financial system and that speech today at Jackson -- why now make and that is where we find Peter Barnes and He has I guess with them.
To tell us how folks are reacting on the ground -- That -- -- and I certainly have Mickey Levy the chief economist of Bank of America joining us right now for reaction to the Bernanke's speech making what did you think.
I'd like to I thought it was very evenhanded.
Well the market may have expected.
Not to be much more aggressive -- saying what that's going to do.
I think for -- -- laid out a framework saying.
You know there actions going forward will be conditional on on economic and financial conditions.
And I think that's that's the right way to go among other things that that jumped out of me.
At -- is He did note the Fed has you know lowered its expectations.
Of economic growth.
And that some of the recent weakness is not just due to temporary factors some of these more persistent factors seem to be weighing down on the economy.
The other thing that jumped out at me that I really liked.
Is or not He acknowledged.
But the very the uncomfortably high.
Long duration of unemployment.
That and other factors are really beyond the fence and scope of the monetary policy that can't do much.
Danny really went after congress.
The White House to try to come up with a deal on deficit reduction a once again He said that that there needs to be a credible plan.
In order to help.
Get the economy growing again -- cautioning.
The administration and congress in the fiscal policy makers that we can't.
We don't want another financial market disruption.
As a consequence.
-- to be careful in.
In their approach but but the other point He made is He not only -- not only said.
We need to get fiscal policy back on to a sustainable track He emphasized.
For more incentives.
To produce to increase productivity to spend on infrastructure to use here not only talk about the sustainability.
Of a viable fiscal policy.
But adjusting national resource is.
That we need for sustainable healthy economic growth.
Big plus I will see it that the policy focus deliver on that less thirty seconds here -- the chairman did say though that the Fed.
Expects a moderate recovery to continue and that it will strengthen.
Over time do you agree.
I think it will strengthen over time the key issue is the timing in the next couple quarters.
The economy may be we're very weak as a consequence the negative wealth impact on on on the consumer.
The issue is how patient will the Fed will it be if once again He said He said the Fed's upcoming actions will be conditional on on economic.
Performance let's just see how the Fed.
Remain deteriorate that's -- so wait for the data points are regulated thanks for joining us stay at they get.
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