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Up battle is brewing among Federal Reserve members as to whether it's time to initiate a new round of so called QE or quantitative easing one of the most vocal opponents has been Richard Fisher he is president and CEO the Dallas Federal Reserve.
And he joins us now Richard it's always a pleasure to see -- thank you so much for coming and thank you David and -- -- the word battles little -- strong -- are having a discussion of -- discussions they're all -- heritage and ladies that -- that the -- they they know how to -- politely with each other but let's face it Richard I mean there is a very different.
Set of opinions here since 2009.
At just remind the audience 2.4 trillion dollars of bond buying.
By the Fed.
That includes most mostly government securities also work of mortgage backed securities and so forth.
Eric Rosen Graham who is that is ahead of the Boston fed.
Says that we should have a new round.
Of bond buying by the Fed an open ended round and he said it should be at least as much.
As we've had before that is double down on that debt by another two trillion dollars.
What would that I know you're against that but what would that do to the economy if it were to happen.
Well first call Eric and I are both trying to get a ride.
You know -- -- perspectives and that's.
What's the best thing to get the American people -- back to work increase employment decrease unemployment.
Particularly now that inflation is not.
Clawing at the door and inflation is running a little bit less than 2%.
We have a mandate given by congress which is to create the monetary conditions for full employment were obviously far away from full employment.
He has one perspective which I respect I have another perspective which I know he respects.
And my perspective is that we already have done as you pointed out David.
A great deal there's a lot of money sitting on the sidelines we've had a huge buildup and the bank's reserves which are placed on the balance sheets of the twelve Federal Reserve -- essentially for safekeeping.
We have over a trillion and a half dollars there we have.
Copious amounts of cash sitting on corporate balance sheets not being put to work and in that last segment Heather used finishing word that you -- more clarity get rid of uncertainty.
The real question is this what good does this for us.
To accommodate more to put more money out of the system.
When what we're hearing from CEOs and business operators.
Public private big and small.
The reason not using it is because they can't plan there's no certainly there's no clarity they don't know what their cost structures going to be they don't know what their tax are going to be they don't know.
Because this uncertainty.
And regulatory side what their health care costs are going to be and how much it costs actually employ.
An employee -- put in my -- payroll.
And my point is -- us as long as that uncertainty exists -- which Alan Greenspan has spoken about.
Something with by the way chairman Ben Bernanke did an awful lot of academic work on -- long -- that is there.
What good does that do for us for more when the system to me we just be pushing on a straight answer -- have a different -- -- our.
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