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Bernanke takes to the podium -- joining us now from Reno Gerald a Driscoll former.
Fed vice president a senior fellow currently Cato institute and you wrote an op Ed recently on the Fed in today's Wall Street Journal.
We are so pleased to have you with us.
Here today -- so we hear so many of these fed statements meeting after meeting what stands out to you today.
Well I I I think they did what people probably expected they were gonna do all that was some hope they were gonna come up with a magic bullet and they basically said there there's no magic bullet for now.
But isn't -- a bit of a relief because there was so much criticism dissenters within the Fed it's -- Saying another round of stimulus and QE3.
If you will the first two -- Include and then you've got the region -- in the balance sheet with a twist really have done little at best to improve current economic conditions.
No I think you're right I think there's a realization.
Slow to come.
Even among people who words you don't.
Proponents of stimulus that the Fed actions haven't been very effective and they've calls to other problems so I think there's a desire.
Not to be forced to appeared that you just are doing something for the sake of doing something.
So the Federal Reserve said third quarter economic growth was a bit improved yet it still said -- considerable downward pressures on the economy so what do you make of the Fed's.
Overall assessment on the US economy.
Well first well I think it's accurate I think things are improving marginally.
But there's a lot of the headwinds and the biggest one right now -- the debt crisis in Europe which.
We cannot escape the the of the but the effects of it.
I suppose that's one thing that will make this meeting -- this that event standout is that Bernanke more than likely will be asked to address the European.
Sovereign debt crisis in the US exposure to that we know the ECB the European Central Bank is also meeting on.
It's interest rates -- policy tomorrow I believe in the expectation is they'll also lower rates and believe.
The ECB rate is is higher than ours -- about one and a half percent so how do you think all that will play out and sort out.
This is going to be going on for the next couple of years.
So there's gonna be periods.
Like yesterday where the markets go crazy and then they bounce back in a manic way.
And its volatility and it's gonna go on for some time.
Fair enough but do you think that -- easing.
In the Euro -- will improve the situation is that that a legitimate tool to help cap this problem from having this systemic impact in.
Continuing -- to may become what's been very volatile global.
I don't think it's a foregone conclusion the ECB's gonna -- they've got an inflation problem.
And driving is just coming in right he's Italian the Italians -- got the big problem and he's gonna show that he's not gonna simply bail -- his own country.
So I mean I think it's at best 5050.
Okay so -- in the US we're seeing interest rates rise a little bit done.
The expectation Phil Flynn was just talk into less about what the futures markets are predicting do you expect the Fed will stay on target with its previously.
Set date of 2013 for the first increase in US interest rates sports over I think Clinton makes the exact.
Well that way -- debt crisis could play out -- to force the Fed's hand.
The because interest rates will be rising and then they'll be they're there to be at an inflation danger.
Best bet is that at least through 2012.
This is where where they're gonna keep the rates.
Are right so we're waiting for this press conference last couple meetings the Federal Reserve Ben Bernanke did not post reporters.
What if you were perhaps you are participating not sure in the press coverage anyway my point my question here's what is that the key questions asked the Federal Reserve Chairman at this time.
A -- ask him how that the situation in Europe is going to play out here.
And whether he thinks any more US financial firms like MMF.
Are going to go to -- Is there a danger and what is the Fed going to do with that happens Citi -- -- question I'd ask.
So even -- the Fed didn't lay out its tools its ongoing tools at its disposal in the company statement today.
Are you saying -- that you you want to hear the Fed sort of game plan you're going forward considering what's going on in Europe.
Okay yes sure this week -- -- out we appreciate your timing your insights a company -- go through the the idea that we got to from the Federal Reserve this afternoon thanks -- Fox Business don't forget we'll have live coverage of Bernanke -- the press starting to.
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