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Bernanke let's bring in Vince Reinhart former fed director of monetary affairs in -- dollar at the American enterprise Institute for Public Policy Research.
-- a -- stand out to you this morning.
Not particularly actually in Peters.
Notice that at the end of -- every clause chairman Bernanke promised was in the context of price stability.
The Fed cares about its inflation goal.
And chairman Bernanke said that inflation was a -- -- its goal so that's that's the hurdle for further action to be pretty darn -- Deep Vince that's.
A hint that the Fed is backing off its -- man because we know that.
Employment full employment it's not been a success so.
Okay we don't have an inflation problem at least at the core when you take out right food and energy which is probably what he's referring to correct.
Right I I I think that the point is they're -- interpreting their mandate is hierarchical.
Inflation is what the Central Bank really -- -- about and can control.
Resource slack for your own employment rate is something that is much more difficult.
Hence the emphasis on the persisted.
Problems in the economy in the drag.
And up clean basically for fiscal policy to get its house in order so that.
Federal government can deal with the unemployment problem.
You know events He seems to do enough of -- fine job riding the fence in the respect that He says.
You know we need is sustainable at the credible plan for deficit reduction in any immediately thereafter you followed that up with.
The government can't ignore this fragile recover -- we're rear end.
And may even need to provide more stimulative measures still he's it's like kind of what both sides of the fence there is -- -- that's part of being the chairman of the Federal Reserve -- recognize that you're going to be criticized from either side.
If He only talked about credible fiscal restraint.
And the need for deficit reduction then He would get criticized for inaction on both monetary and fiscal counts when the unemployment rates 9%.
If He talks about fiscal stimulus then people start -- out the problems with debt.
Debt and in the longer term consequences.
Was a significant events extending the September FOMC meeting from one to two days.
That's a classic Washington response if you have a problem -- you should meet longer.
So I I think it's twofold number one is it's a way of displacing the disappointment.
That is He was given this beast that didn't have any deliverables that market participants.
May not have expected but deeply desired in their heart of hearts so.
Bank they can at least put it.
Put the next event on their calendars the two -- September meeting.
-- second point is it does does give them a chance to talk a little a little more about strategy.
Both in terms of how they explain what they're doing and and what criterion they've they've they put for acts of.
You know real quick on this who have been solved much -- -- made about the up Paper you presented last year Jackson Hole.
Where you a lot of that has come true in the previous year.
You -- fifteen.
Financial crisis is in the second half of the twentieth century -- what are you looking as far as going into another recession based on.
Yes on the Paper my wife Carmen and -- we looked at the fifteen worst financial crisis in seven out of fifteen cases.
There were two recessions in the decade after the financial crisis.
Economies grow more slowly the unemployment rate tracks high and your much more vulnerable to adverse shocks me a lot of lot of bad things happen in -- world.
Yeah a lot of that things right now as -- sure thank you so much Vince gray stuff that's -- -- What mention that things what's worse for the economy right now hurricane -- or.
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