Dobbs and Willis Debate Bernanke's Economic Measures
FBN's Gerri Willis and Lou Dobbs give their take on the Fed decision.
- Duration 7:21
- Date Sep 13, 2012
FBN's Gerri Willis and Lou Dobbs give their take on the Fed decision.
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We are joined now by -- I think all the big guns your -- business we have went up in Gerri -- sunset what -- we also -- have a those felt let the CME and the -- -- is on the floor of the New York Stock Exchange are rights out.
-- is gonna be facing the news media less than two hours from now he's gonna is -- really have to address this extended purchase.
System open question he will not have asked of him today is mister chairman could you have done more.
The he has simply rolled out all all all of the weaponry.
Official -- and a year ago.
There's nothing more he could have done to drive these markets are watching the equities markets trying to figure out what -- happened.
The fact is he is taken the opportunity.
The housing market that's MBS program the mortgage backed security purchase program in my opinion.
Process you know we're here and it's -- we're going to stay here if there is a weakness in the housing market it will not be because we did not support.
The housing industry press secondly he has to deal with the yield Kirk and I'm not hearing any and it will be interesting to hear the experts through the day.
But the fact is they had to attack this yield curve which has been steepening as you all know from for months here.
What we're watching in at least an initial reaction is rising Iraq's -- rates.
But we are also seeing got to yield curve.
Decline we were you know we've been looking at between the two year in the ten year one and a half basis points we've been looking at the ten year -- the thirty year.
Are just about one -- or 100 -- basis points.
It's extraordinary that action they've taken I think.
When you get through all the clatter of there could be apologists irrational lost the fact is this this chairman has taken bold brave action.
Absolutely necessary for the economy.
Gerri -- your question for this -- I disagree entirely with little I don't think this is a necessary and essential at this point.
I think in fact what's going on is that this economy now needs to turn on its own I don't think lowering mortgage rates right now is gonna fix the housing market we've already got a floor under the housing market with rates below 4% at three and a half for a thirty year fixed.
That's what's not needed right now right now we need Washington to get its act together that's the thing holding this economy back.
The Fed is said that increased.
Jobs by two million with its actions today.
That hasn't been -- up with the Fed is doing now is more of the same what we need is a -- and wash.
Can have lower got to fix in the -- -- panel lady is I mean again you got the market's getting what they -- Scott Martin was saying yeah basically we're gonna stay the -- couple more hours but there's going to be ahead.
Over right and that's what we talk about we talk about them the markets really being very knee jerk reaction very short term basis.
And for the moment they get everything they want it on a silver platter.
And we use that phrase risk honor risk off I mean today everybody is ready to take that risk they're buying everything all of the Dow components with the exception of following.
That's the one obviously that's facing intense competition from other recent merger.
-- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- But does the Dow went as high thirteen 100445.
-- -- the highest levels we've seen since 2007 -- breaking out at least for the moment.
Yes Foster like and Phil -- ever see anyone else is happening fallout -- funnier and now well I think.
I think Lewis actually get in a very good point -- if you look at the short end of the curve.
The weight of their movie on the Euro dollar futures that's where you're seeing a bigger mover.
Buchanan and a bigger percentage and you are in relationship to the long end of the first and second -- and -- hero here.
On the question -- the -- reacting within the -- sad about keeping rates low to 2000.
I think almost pointing -- out to 2060.
I don't know they're couple that.
They're -- -- of the entire day -- that's where Ben a lot of the movement right now I think a lot of the traders right now.
Really wanna find out if this is -- right now and I think if they -- as we get more details out from the speech today.
I think we're gonna see item theory explosive commodity markets -- some time.
-- look amazing and we're talking about open ended he only end you know the nuclear option of doubling down on the Chubby -- strategy.
And you know on the dollar -- the doctrine -- that -- actually Friday.
There it's amazing the dollar seemed to figure out what was happening in the rest of the markets are still.
Trying to figure it out.
Yeah after all of this -- I have to ask the question begs the question was any of this in your opinion closely motivated to remember that he has a job but -- -- to protect Mitt -- he said he wouldn't keep him around he's up -- two years.
The -- president.
Ben Bernanke has lots of employment options he is not being motivated our in this decision.
A nor in any of his previous decisions as Fed Chairman politically that's all that's just clap trap that's -- sometimes on the street sometimes on K street.
The fact is that when I think history Wilson will demonstrate clearly.
That Ben Bernanke actor with great courage despite the the hypocrites -- -- -- signal no we can't have you know we can't take anymore.
Loose monetary policy.
He has a dual mandate employment as well as stability in prices.
He is doing exactly what he has to do and those who -- arguing against it I'm telling you would be amongst the first to be shrinking.
If he had not been taking these actions to push quantitative easing.
He also its price stability as well what he's making -- -- inflation like we've never seen before.
And I think that's going to be a big problem going forward I agree with you I don't think Bernanke is trying to get a job.
I think Bernanke is trying to protect what he's done here and his reputation and that's what's going to let -- -- what you think is though which you think has had a worse effect on our lack of recovery the Fed or Washington policies here Washington.
-- and one of the Fed Lou but if you guys isn't ship.
And the fact is that we have not seen any this step taken.
By -- -- this administration fiscal policy that makes any sense whatsoever.
But unfortunately for this nation.
Ben Bernanke is only in charge of monetary policy not fiscal -- -- he's got and don't inflation and that's what I think is being missed here is that the fact that if you look at August wholesale price people acumen today.
It was -- to tell -- to its -- I think we're gonna I don't record ratio was point 2% and we understand what is happening as a result of these higher energy prices can but the reality is this.
This economy right now pastor who supported monetary policy it has to be accommodative policy.
Ben Bernanke deserves our I think our appreciation.
And compliments rather than.
As I say these to me hypocritical our criticisms emanating from folks who are.
That I think would be among the first to share my gaudy strangling us -- -- I I don't think I'm being hypocritical in saying that -- will be a problem for the American public.
If interest rates go through the roof the people who feel that first of the people who are living paycheck to paycheck a reminder this.
This this -- as just assurance that I will be looking at low rates.
Through twelfth 2000 -- and then you know what I my daughter and they -- so much Gerri Willis and Lou Dobbs we'll -- -- both of course tonight on the Fox Business Network -- thank you very.