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Center for Financial Stability President Larry Goodman on the potential impact on the economy of further action by the Federal Reserve.
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-- reserve chairman Ben Bernanke speaking in Jackson -- this morning really the headline of the global market place.
Saying that the Fed is ready for another round of quantitative easing -- rated go when it becomes necessary aren't Goodman president of the center for financial stability.
Planting more on what Bernanke had to say and if the economy really needs QE3 Larry great to have you in studio.
This afternoon so are right everyone seems to be in agreement that QE3 is on deck and will be implemented as needed we can argue when it'll.
Coming to play if you will but what more can monetary policy -- at this point in the recovery well I.
I think that monetary policy can do precious little going -- I think that on the chairman today really heated up nicely.
He.
Delivered an excellent series of remarks going through the costs and benefits from another round of monetary stimulus.
And based upon the calculus that he chartered out today.
The Fed stands very ready to do it.
But that's all well and good he was also forceful in his comments.
To Washington saying listen my hands are tied not necessarily tied -- that the tools which you guys -- even shot up any bullets yet.
In terms of dealing with this fiscal policy in these debt deficit crisis we're dealing with who.
Absolutely I think that.
That the chairman provide a lot of fodder in the speech for -- and was very clear on the fiscal front to.
That the government needs to take not only the budget to getting the budget deficit down.
But addressing our long term contingent liabilities whether their debt Medicare Medicaid or Social Security it is it's.
Interesting times and I think we're just grinding along and -- -- we.
Pick apart these fed events and I know we've got -- meeting less than two weeks away so perhaps you know.
Bernanke didn't wanna -- in front run himself he's also got an ECB and then back in the US the -- for the calendar is chock full -- after Labor Day.
So many things going on so much anticipation building up to them but what realistically is going to get done that's gonna make a meaningful impact to the positive.
Before the end of the year the fiscal -- the election all this other stuff going on.
I think that it's very tough engineers solution here now.
I think that the Fed stands ready to provide more stimulus.
For -- was resoundingly devolution resoundingly clear.
In his remarks that more of its on the table is it fair -- Romney to be critical and I I think that.
Based upon our perspective.
In terms of how -- of evaluating the Fed's actions.
And when we look at the costs and the benefits the benefits from quantitative easing have been successively reduced with each round thing so.
Our concern is that the efficacy of another but dollop of kiwi.
Is not going to do much for the very for the economy we're gonna be lucky if we get one point 5% growth.
The gold market is telling you another story today gold prices are up so to be sure there was only one sentence in the yet comments today that inflation.
Inflation is about 2% -- place for inflation are so there clearly are are signs for future.
Thank you Mary appreciate your take.
