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RBC Capital Markets chief U.S. economist Tom Porcelli gives his outlook for the Fed and markets.
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-- and Ben Bernanke's Jackson Hole speech is set for Friday our next guest believes more stimulus is comment.
But when Tom -- -- chief US economist with RBC capital markets.
Joins us now Tom the GDP was down said the second quarter grow one point 7% to takes better.
A guest earlier this -- said.
He think that reduces the chances the Fed will ease at all what are you say.
We'll have.
I think -- -- -- GDP report is that it is very old at this point right this is -- second quarter number doesn't affect the second look at the second quarter so.
I don't think that she be report weighs into their thinking actually at all.
I think steadily do you think will weigh into thinking as moved as it relates to whether or not to engage in another and a few weeks it's -- coming payroll report.
I think the Fed was thrown off a bit by a couple of reports that have come out.
-- -- better than expectations namely the payroll report in retail sales report so I think this report -- in a lot of ways will sort of make or break whether or not QE happens in September.
I -- and then what do you think -- are you still betting that easing comes in September and is that already baked in the stocks Rostock had a good run up out of that.
So I think it's still mixed with regard to markets.
Peaking in any particular reaction seems split 5050.
From the clients that we speak you.
I would say that in terms of this upcoming meeting.
Again -- -- me I'm one who'll gladly hang my neck out there -- in almost any for any call.
But this one it really will hinge on this one -- report I think you get a number that's 150 to 200 or better.
I think the Fed probably takes a pass or more specifically it allows the Fed to take -- -- -- -- you see something that prince closer -- 100000 I think then then you'll get QE but but again.
I think we won't -- let's make sure we sort of drive the conversation in the right direction here I think what we have to ask ourselves -- but does it matter.
We're just Q we actually matter and that we think the answer is no it doesn't at this point.
Not the economy and certainly the stocks all right thank you very much Tom course -- -- to thank you.
