This transcript is automatically generated
Okay do you think.
RE for more of the Fed's next step I'm joined by Stephen Moore senior economics writer for the Wall Street Journal -- welcome back to the show with our great to have you -- Eric.
Forty may give up Bernanke's comments today he doesn't sound happy with the economy and he's telling Wall Street exactly what it wants to hear.
Boy -- -- Wall Street just loves easy money.
I have done you know he's basically said he allowed more easy money.
We may we may deliberate out a couple this thoughts about this was just putting it in -- perspective -- the election which every stock about right now.
I'm not sure there's much -- Ben Bernanke could do then the next couple months it's gonna really influence the growth rate by -- jobs between now and November -- I think and by the way the fact he's gonna delay any decision means that the Fed is now got about not add to.
Problem one of the things that that Ben Bernanke said today that I took interest him was he said.
Word two percentage points on unemployment above where he wants us to be that's a lot Jerry that's a big gap.
And that means you know wait until we get that unemployment rate down below about seven purse out we're at about eight point 28 point three now.
The Fed will be looking at taking action putting their.
The foot to them to the in the -- of the battle.
Not lower interest rates and more are more money creation.
Seen any say that the Fed to not Antony now but if that jobs number comes in on Friday and it's really bad.
They think they'll take action.
Well possibly but you know we're getting even if they took action as early as you know early September have lower practically -- number what's in mid September.
I'm not so sure that kind of -- takes it takes 34 months.
For fed action to really -- you -- that those dollars to penetrate into the economy so what I'm saying is I just don't think the Fed is going to be a big impact.
President's Republicans and Democrats I remember -- the Nixon years in up.
Nixon lot of more money in her body before the election.
George Bush senior thinks the reason they they -- he lost the election is the Fed was too slow and pumping money into the economy so so there's a kind of political impact.
Point that Steve and I think that people are missing here look even if the Fed were to do something maybe even something big.
I don't see the kind of people in the economy are reacting to consumers have the confidence -- at low levels.
Business -- do anything as they don't know what the tax situation is gonna be right.
-- I've come completely right you get a an economics major you're exactly right.
Because here's the point let's say that we do get a -- employment number come Friday and that's certainly plausible.
That the Fed's gonna say OJ we're gonna pump more money in the economy do you think people if they feel more insecure about their jobs are they gonna go unspent money we've learned to ride over the last three years that doesn't work that's been the whole.
Neuroses of this economy gonna last three -- four years this idea.
Debt with a high unemployment rate we can pump money into the economy -- people go out and spend that they're not spending at which is why we've got these record low interest rates people isn't really get that money and they just buy bonds with that.
Break and that's going to be as strategy for -- -- disaster in coming years I think.
But let's not about a little bit about -- post Bernanke world okay.
-- -- Ben Bernanke is not going to be running the Fed probably very soon -- do you think let's say if Mitt Romney were to become president to what he choose to run the Fed.
Great question you know -- the guy I would love to see there's a very self serving in the senate but I would love to see -- Laffer Laffer is the architect of the Reagan revolution.
He knows monetary policy -- be fantastic and I think he's a long shot.
But I think he would be fantastic.
Glenn hub verdict I think would be very high on the list -- Jerry he's a very close economic back advisor.
To Mitt -- this is all assuming that Mitt Romney who were were to win the race.
Ed by the way if if -- if I'm Obama wins I think he would reappoint.
Ben Bernanke -- what does that Greg -- Q4 Rodney -- Good choice -- he's very close he was a bush economic advisor as you know.
I -- really has the best selling textbook and economics Seagate bought by about a -- with that.
You know she'll be -- that I could get out -- -- -- economics.
And I -- he's got a and so I think he'd be a high choice I was while novel of course there's always John Taylor the economists out at Stanford who's been on the short -- now for a long time.
About how I -- I'm not -- I -- I area show -- I don't know I think you gotta get.