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Columbia Business School Dean Glenn Hubbard on Ben Bernanke’s speech at the Jackson Hole economic conference and whether further action is needed by...
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Like many thanks so veterans -- -- Ben Bernanke gave his much anticipated speech on monetary policy this morning.
Reiterating that the Fed stands ready to initiate another round of stimulus -- need it.
Bernanke is facing criticism from -- some say he's failed to jumpstart the economy.
Evening GOP presidential candidate Mitt Romney told Fox Business Peter -- that he would replace Bernanke.
My view has -- that I would want to select someone who it was a -- member.
It should be a new person to that chairman.
Chairman's position someone who shared by economic views that.
Thought was sympathetic to the needs of -- of our nation.
Glenn Hubbard is one of Romney's economic advisors he's also the Columbia Business School and often mentioned as the next fed chair if Romney should win -- of course were pleased to welcome Glenn Hubbard live from -- -- great to have you.
What do you make -- Bernanke's speech your morning.
Well I think he outlined a case -- for a weak economy -- the need for more policy action.
-- guess I'm skeptical that the Federal Reserve is where to go for that action I think the problems as the chairman correctly said.
But with uncertainty in fiscal policy and with the government we're asking too much of the Federal Reserve.
Absolutely I thought it was interest seeing.
Backs Bernanke was his forceful as he was saying monetary policy is done as much as it could Washington help me out here with.
A compromise or some sort of action on fiscal policy so bringing politics in forget the fact the Fed is independent or.
Do you forget that it's independent of politics at work here -- a lot of finger pointing on -- can you be so critical of Bernanke given that Washington isn't.
Many would say is helpful on the fiscal policy front.
Well I think -- raising two questions one is another round of quantitative easing a good idea for the US economy.
I would say that -- should be very skeptical of that argument I'd be very skeptical that there would be pronounced real effects of additional quantitative easing.
The other question and that's the bigger wine is what should the government be doing.
Clearly their tax and budget changes that are needed that President Obama simply isn't lead.
Our Peter Barnes and played the sound -- from his interview with governor Romney last week -- his follow up question which we didn't play today was.
Well would you put Glenn Hubbard into that job is fed chief and he didn't say now so if -- would you accept.
That's -- sort of premature speculation it's entirely up to governor Romney if he were president Romney the important thing is fixing the US economy.
Absolutely -- had to ask of course.
I cut -- some slack for that land.
OK -- Bernanke did say today that the labor market is of great concern but perhaps what the market is reacting to today deposited.
Comment as well that it is not beyond structural disrepair right that -- the labor market can be fixed and last night Ronnie said that.
He could create twelve million jobs in this country so give me some more detail if you -- on how -- go about doing that if elected.
Well absolutely.
These structural problems are not what's holding the US economy back what's holding the economy back.
Is very -- public policy to support growth what governor Romney.
Has talked about repeatedly is trying to get rid of the policy uncertainty in Washington that's costing us millions of jobs.
And moved to a fundamental tax reform and budget reform.
That gives people confidence to invest and hire in this country again so the very powerfully last night.
You did it in op Ed -- op -- for the Washington Post if I was very into CNN we have a couple of seconds I apologize for that sit Obama is wrong to suggest that.
All economic recoveries after financial crises are slow explain further as -- why.
Your critical of that.
When the in the pre depression period we had a number of episodes of deep financial crises and strong recoveries.
The question is what's the policy mix and it's not a surprise.
That if you demonize investment and risk taking your going to have a slow recovery we can change that governor Romney will change that.
Glenn Hubbard live from Jackson Hole appreciate you're taking your analysis of the Fed chief -- -- economy and the challenges we face thanks again authorities speaking -- against him.
