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Federal Reserve Bank of St. Louis President James Bullard in Jackson Hole, Wyo., on the biggest risks to the economy and the potential for further sti...
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-- -- Are very well it is highly anticipated at Jackson Hole speech -- -- -- Bernanke did not pull the trigger on another round of easing but he didn't state the Fed would provide additional support as needed.
So what could it take for Bernanke to act Peter Barnes.
Is live in Jackson Hole Wyoming was Saint Louis fed president James -- Peter.
But try David and Sheryl Jim Bullard -- the Saint Louis fed is joining us now to give us his take on Ben Bernanke speech today and Jim welcome back to Fox News.
Well I'm happy to be here heck -- well what was your reaction to chairman Bernanke speech.
Well I think it is a very good job in this kind of situation and he laid out a lot of evidence a lot of the thinking that's been going on around the Fed over the last two years about the effectiveness of various programs -- very balanced.
And he didn't tip any hand about what the committee might do and that makes a lot of sense because.
There's more data that come in -- -- and we don't have to make a decision until we get to September or beyond.
September yes September 12 as the next meeting you do have that all important jobs report a week from today I don't give -- some some more detail to -- -- on.
The data on the economy has been kind of next year in the last month or so what what what where do you think the economy stands right now.
Well I think we have this long string of bad news sort of through the first so there's second quarter of the year.
But I think that's turned around a little bit in -- and since our last FOMC meeting so that's leaving the committee and a little bit of limbo.
I think as far as.
You know we do have an easing bias vote you know whether to take action or if we do them exactly what action to take I think those are all up in the -- And in the last meeting July 31 August 1 half of the minutes that -- -- today that they were about as media as I have ever read and and there are a lot of options there from additional quantitative easing two.
Interest rate on reserves of bank reserves -- the Fed.
And of course the one that you're gonna look at on September 12.
It's going to be whether or not to extend.
The forward guidance on keeping interest rates exceptionally low.
For it even beyond 2014 what what do you think of those options.
Well I haven't -- the calendar date but if we're gonna have the calendar days extended length yes -- -- then I think you do have to move it when the economic situation changes and so you know that's where we are.
-- and the truth is.
You know as of January this year we had a stronger forecasts that we have now is definitely downgraded but we haven't moved the date at all so that doesn't quite fit together.
I don't know where the -- gonna come down on them but but that's the situation went on the other hand if you go farther out into the future.
Minutes you know there's so much uncertainty about what's gonna happen out there in the future.
That you know is it really you know having any impact or or is it really meaningful because by the time he gets that far on the future things -- change.
And plus you also have some changes in the voting members of the of the FO somebody and then you'll you'll be back on -- -- as the next area next year yeah.
And so.
That creates even market seems to me that.
For you although I have to say I don't think voting is a critical thing on the committee everyone comes to the means everyone.
Has -- Chairman is very good about listening very carefully everybody.
And and it's a consensus organization so there isn't there isn't that much in the way of contentious building.
But but it does seem that that you all are at -- -- a period of great uncertainty about the future and and and that and that's that is not not just with.
What you're handling on the monetary side but also with the fiscal cliff with Europe -- -- Very tough job ahead for very for you on your college.
Yeah Europe is definitely -- have -- biggest risk about it you know right now it's -- Into better place I mean compared to where it's been in the last two years here.
So you know if you look just think about Europe.
You know a year ago at this time it was very tumultuous.
Our financial stress indexes were were jumping up and down and and that's not really there right now so.
You know maybe it's time to just see what the Europeans do here.
To just wrap up here our life portion of the interview you have some very specific ideas.
About an additional round of quantitative easing if the FOMC decides to.
Go forward with something like that your proposal is walk.
-- I I would and I've been advocating since 2009 maybe I'll actually get it I started out with only only me but I think have a lot more support now that I once had.
But if we are gonna do QEA or any kind of balance sheet policy I think you should do it meeting by meeting.
It would be the exact analog of interest rate policy you make a small move at a particular meeting.
He gives some indication of what you -- the direction he'd like to go in.
-- you reserve the right to look at the data in the future and possibly change course a little bit depending on how the data come in so.
I think I think that's a -- -- -- -- -- policy instead of these sort of 500 -- very large actions with these finance and days and those and that's really -- us because they they.
Come at times when you know the data is going the wrong way on us and so -- ending up.
Looking looking foolish in the -- -- -- -- in the next few meetings and thanks for joining us -- on Fox Business David -- we are not gonna continue our interview with Jim.
For some exclusive.
Material for the web -- there will be posting to foxbusiness.com.
Who later this evening so bacteria -- -- fan thank you very much like a post -- behind Peter -- on real even when you're there for.
