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Federal Reserve Bank of Atlanta President Dennis Lockhart discusses Fed Chairman Bernanke’s speech at Jackson Hole and the economic situations that ...
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A higher open.
So let's go now live to Jackson Hole Fox Business senior Washington correspondent Peter Barnes is there to help set us up for the speech today -- Peter.
That's right we have a special guest right now -- Dennis Lockhart the president of the federal reserve bank of Atlanta is joining us then he is a voting member of the FOMC so we -- -- pay very close attention to.
Genesis thoughts president Lockhart thanks for joining us you wanna get on Fox Business the title of chairman Bernanke's speech this morning -- monetary policy.
Since the crisis.
-- does that tell us about what he may talk about.
-- -- -- it he's I don't have an advance copy so I'm gonna speculate that I I think he's going to take stock and if you will.
Since the crisis and and since the beginning of the recovery.
In a -- over three years ago.
We've gone through two rounds of quantitative easing we've had this Operation Twist so there's been.
Quite a bit of monetary policy action we've also had communication strategy that.
That -- signaled interest rates remain low for a long period of time.
I suspect he's gonna review all that and perhaps discuss the pros and cons of of more action at this time.
That the risks and rewards I know that you're worried about the risks.
Potential.
Additional.
He's steps to ease another round of QE he.
Other potential steps forty concerned -- I wouldn't -- -- overly concerned about the risks -- I think the appropriate approaches to -- you what benefits you would get from you some such an action.
Vs the risks sure the costs over the longer.
Term and other way I've thought about it recently and I said this publicly is I see the benefits as limited but I also see.
The risks and costs as manageable.
What would it take for you to.
Approve additional.
Steps you next meeting September 12 but minutes from July 31 August 1 says that that indicated.
You and your colleagues had a very very -- they.
I detailed discussion about potential additional monetary.
Well I would say two things first if we saw -- real deterioration from this point and that would be reflected in.
In a number more months of very weak jobs numbers for example or conceivably.
Dis inflationary pressures coming to bear that.
Might raise a concern about actually getting into deflationary cycle clearly that would be a call for action.
Now it the more nuanced.
Situation would be really -- in my case coming to the opinion.
That's the benefits actually.
Are greater than the costs and that we could make significant progress.
On our particularly on our employment mandate by adding new new using.
So says to me like you're not ready to actually vote for anything on September -- you want to wait and see more data I'm not I'm not ready today.
Today I'm in a process was my staff of very thoroughly weighing.
All the benefits in in trying to estimate -- -- so obviously.
Not easy but trying to estimate them and also -- learning everything we can about Q the potential for for downstream costs.
Are.
