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When Will the Fed Move on Rates?

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    Jeff Given of Manulife Asset Management gives his outlook for the Fed.

  • Duration 3:23
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-- the Fed meeting also today.

And again the question here is whether the FOMC will take more action.

To help the economy was here about QE quantitative easing of the gonna buy more bonds -- such print more money.

Try to help the economy recover Jeff given the fixed income portfolio manager -- -- -- asset management joins us now to talk about that.

What will the Fed -- -- world has said nothing today.

But what's the bias here for the Federal Reserve what direction do you think they'll move given the economic data we've seen recently.

Note.

Is easy to say that this is gonna do nothing -- economic data but I really believe they're probably more bias to put more easing into the economy.

And I think that's what's gonna make not so much this meeting -- That important but we're looking at the note that minister come around two weeks in any new ideas -- they have how they may approach quantitative easing and more sterilized method.

No I think I -- you know try to read between the lines which is some.

Somewhat easier I think with Ben Bernanke and what's without Greenspan but trying to read between the lines what he said -- that tend to agree with you that he still thinks there risks to the economy and thinks the Fed needs to support it.

I was talking to -- the mark Farber on our show yesterday I'm sure you've heard of doctor doom as people call America.

Whatever among other names and he was talking about this idea of a bankrupt Federal Reserve which I'm not sure I understand.

It did tell because the Fed can keep printing money but he that's what he's concerned about that at some point.

We've got to pay the piper for all this and that the Fed can't keep this up can't keep supporting the economy what he said.

Yeah that the risk for mistake is very high rate now we've.

Their balance she's -- Every time the -- the printing more money you're entering into another QE program.

If the economy is really a stronger footing is going to be very difficult for them to be able -- that the -- is it sensitive implement -- -- to visit us stronger footing and -- via.

I think it is I mean I think it's still a -- gradual improvement if you look at the jobs numbers.

That come out there's that you clearly stronger than they were last spring last spring shrine in the prior spraying.

I'm the 1 thing I am concerned about is is -- -- deja Vu all over again.

Where every spring -- seems like is really strong and then we have this summer swoon and we've talked about Q we -- quantitative easing throughout the fall.

Let me ask you -- investment.

Related question and and that would be this Jeff we have interest rates -- remarkably low levels like just brought up with Douglas Holtz -- what we're talking -- You know whether we need to spend more whether we need to cut back.

When does that change do you think you mean who what when one is there a point when we actually start to see a move higher in in market based.

Rates which I guess is -- similar question of when does the Fed move on rates.

ER ER I think.

-- gonna start to see rates push higher as some point this year because they do believe that -- is a little bit stronger.

Than it has been.

I think that's likely -- occur once this Operation Twist ends.

In this artificial support for ten and thirty year securities acts as the market then you'll see the longer term.

Rates move up I still think the Fed is inclined to keep the short term rates right close to zero for three year rights and nothing Chris I mean he -- about house are getting a lot nothing crazy went back to see a big move higher rates any time since the point even if in the buffalo -- Right I think it.

It noted even that you'd have to see inflation spike in you'd have to see jobs data current afford a 500000 jobs -- Jeff Jeff given thanks I appreciate it now than what they are.

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