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Rep. Barney Frank, (D-Mass.), on the impact of Federal Reserve actions on the economy.
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-- Federal Reserve Chairman Ben Bernanke told congress that -- are prepared to take action of the country's economic situation worsens joining us now -- a Fox Business exclusive.
Party for his ranking member of the house financial services committee congressman -- thanks so much for joining us we appreciate it who welcome.
We have a lot of ground to cover tonight -- after the Fed which was certainly the money story of the day what would you like to see that -- do when they need this month.
I think that you're continuing they've been doing I heard over the prior conversation.
About well what received from six to 982.
But we have a much more recent set of examples.
The Federal Reserve has been very energetic and putting money into the economy and a variety of ways and including helping to stimulate the European Bank to do the same.
And the results have been all good.
All these people have been predicting inflation have could not have been more wrong.
After several years now the Fed has -- -- -- -- -- has been no increase in inflation.
The taxpayers made money off it.
Thanks to legislation we put through no no secret deals everybody knows now what's happening.
And I think it has help situation from being worse we had this terrible.
Recession that we began the 2009 -- We've got this terrible problem in Europe which is slowing us down.
The Fed has played a very important role here and I think.
-- time has come and I would be good to see it.
For the Fed to continue doing the kinds of things -- doing which is.
Helping provide funding for the economy and it in the responsible way in which they've done it which as -- -- has led to no inflation and no abuses.
-- -- you would like to see something like a QE3 expecting the question is sort of that we've seen interest rates or go as low as it possibly go for the economy hasn't recovered that much.
Do you think more would actually do more what specifically why did you agree with.
You I disagree with the the way you said that the economy in fact of all be developed economies under performing the best.
-- I think the expansionist policies of the Fed in the low interest rates.
One of the -- we are performing better than your -- were part of a world that's an injured brigade of the economy.
We can't be totally affect of that but I think as any economist -- understand.
The issue would not what you're doing go to -- but whether given all the other circumstances that terrible recession that we began this with the problems in Europe and elsewhere.
Whether we're doing better than we otherwise would have and I think it is very clear that as a result of what the Fed is -- and kind of the economic.
Recovery but it's like -- we Princeton in 2009.
We're doing better than we otherwise would have now.
We've had public policy that of retarded that we have -- since the turnaround again.
More than four million private sector jobs.
But that's been dragged down -- by the loss of 700000.
Public sector jobs because I think about above all these public policy so what I think that you know exactly how the Fed doesn't it for them to decide.
In terms of whether or not they buy more mortgage -- whether they've made from the terms of things.
But I do think.
And keeping interest rates low.
A combination of those things.
Can't guarantee a fast recovery he can do what it can do which is to make things better than no one -- would've been.
Well but it's not -- -- -- quoting that that four million pluses is from the absolute bottom of the topic you look at where we are an unemployment rate of eight point 2%.
It has ticked higher that GDP number of below 2%.
Is not great and certainly are not -- I don't send us to send the fox perspective on all that's what you do well -- the -- doesn't comment about me please madman would tell me when I can -- these top.
Thank you yes I said those number usually from the absolute bottom that's a relevant place to measure.
We blog Obama inherited the worst economy in eighty years.
And we have begun to improve there have been a couple of retardant.
One has been the pubs in Europe and Europe has been a drag on our economy.
Both -- of confidence in terms of sales secondly we have had what I think a mistake in public policy.
So that -- job number the unemployment numbers higher than would have been by several tenths of a percent.
Because we have forced the firing by state and local governments.
Of teachers and firefighters police officers and public works employees and the question is given how bad off we -- -- Given the restraints in the rest of the world.
Are we doing better or worse than we would have been with a different set of policies and I think it is clear that we are doing -- in England they took the opposite view.
It was strict austerity.
Right away and then a lagging way behind us our economy is not doing as well as I would like it to be doing but as we like -- the British.
