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However the Fed's open market committee meeting is underway and after disappointing growth in the first half of the year should be expect a bold move out of the Fed.
Our next guest says easy monetary policy is not the solution.
Joining us now Joseph Carson US economist with Alliance Bernstein.
Monetary policy -- we've seen it.
In the past a lot diminishing returns now as -- it.
Well interest rates are low liquidity is very ample the economy is not stumbling because of monetary policies because the uncertainty of festivals so.
Do you expect to hear tomorrow that said punt it back to congress again and say -- -- -- this.
I don't think it would -- back I think they have.
Adopted a very aggressive monetary policy and have committed to keep rates low until 2014 and I think you just have to wait and see how -- common forms of -- six months.
You know we get economic data today personal income up -- spending -- We've seen corporate cash pile up but -- business investment is down so everyone is hoarding cash -- change that.
Well you -- put in place a plan that gives people.
Businesses some confidence that the rules you put in place in Washington going to be around for a long time did you see that happening -- Hopefully after the election we -- -- whoever wins -- to put in -- a plan gives businesses and consumers -- confidence does it matter at this point with the plan as long as there is a plan.
I think the plan does matter.
Certainly we do not leave them a lot of higher taxes but I think a long term plan and reform of tax -- would be very important.
So overall attacks to see that happen.
Well everyone's talking about it and that's -- confusing by itself because we haven't had fundamental tax reform on the corporate side since 1986 right.
It's time I think.
The jobs number on Friday when -- expected modest growth tax receipts -- little bit better in July.
Jobless claims -- -- so you probably see much better job numbered lease on the headline number.
That then goes against more fed easing that's.
Well again right now our content is not something because monetary policies tight end very very low interest rates for everybody.
Bank creditors -- money supply is growing relatively faster could be sample.
We just need some confidence from -- policy makers and housing feel about where the housing market is right now that's clearly bottom I think the price trends tell you that prices are headed up.
Buying activity is.
Fits and starts inventories are low again I think you get more clarity on tax was -- job market I think house we will do little stronger next year.
So between now and the election you see just this plodding along in the market nothing or lots of volatility.
The markets will probably give us a clue.
Of what they expect in November and -- expect after so you know there are better -- than economists yes isn't that interesting -- -- right Joseph Carson thank you so much for being with us and.