This transcript is automatically generated
-- the Federal Reserve starts a two day policy meeting today questions swirl about whether or not Fed Chairman Ben Bernanke will keep his job for another term.
Past 2014 Mitt Romney told Fox Business that he plans to appoint a new -- The New York Times reports that pretty he himself is telling friends that he will likely stepped down -- 2014.
No matter who wins the election.
So they talk about how this news could affect the markets is yadda crunchy TD bank vice president and deputy chief economist welcome the other things coming on the show under what.
About this news -- all the speculation sterling and -- you know Mitt Romney has made no secret about it that he's not a big fan of Bernanke influencing elections when we presume that.
Whether Bernanke wants to go or not there would be a change come January 31 when he fourteen.
-- I think what ever happens however because we're such a precarious moment period of time with monetary policy.
It's unlikely we're gonna see drastic change.
Even if Mitt Romney puts in someone of his preference simply because it's -- -- important for them to maintain credibility it is but at the same time.
He has they would most activist fed chairman's.
View that we've seen in a long long time.
I would think the market would assume that anyone who came in would have a little bit of a tighter fist that Ben Bernanke so -- definition of market would correct itself and tighten up wouldn't say yes -- then you'd think that whoever comes in would.
By nature be a bit more hawkish 200 Yankee history we are not Irish side.
And by all probability we might see some re pricing in terms of the Federal Reserve haven't said they would raise rates likely until 2015.
-- retracing coming in with pushing up those expectations and to 2014 to your point.
And tightening coming in.
But I think the first order of any news the Fed.
The chairman would be to establish that.
We're not gonna have drastic changes you don't want that volatility creeping into the market and getting away from him what a material impact on the economy do you think -- -- change in fed policy because at this point it seems like.
Acute need to infinity is really an impact on socks -- is putting a lot of -- money out there to feel markets but it's having having an impact certainly could be anywhere.
It's of the counter factual for sure because people throughout numbers in terms of the -- jobs up would've.
Been lost in the absence rate it.
The bottom line as we went through a financial crisis.
Huge deleveraging cycle.
We look to Japan who made a number of errors in terms of not doing to -- fast enough they edit it took ten years before they moved into its news cycle.
-- -- was probably the right person at this point in the cycle having been a student of the depression in Japan I'm so I think ultimately the policy measures to put in place have been beneficial.
And we still only get an average growth rate over the past three years of 2.2 percent here in spite of those policies we don't know what would have transpired but remember we're close to.
-- -- -- -- -- and I'm just not sure we need to continue it so long but going forward.
What do you think the economy looks like to you right now -- mean there's worries that were slipping into a global slowdown instead of things getting better than getting a little worse yes I did was look single son and of the data shows that.
Then it's actually here we are into a global slowdown going on there is a little bit in news out of China showing that maybe they're starting to pick up some momentum which is good news.
But ultimately we're looking at global growth of maybe you know three once a very low 3%.
Which is slow -- typically you'd want it -- -- 37 to 4% range for an average.
So we're definitely on the slow -- -- the US doesn't have a lot of margin to play with there -- they're averaging one half to 2% growth rates and not a lot of margin on the downside.
The -- -- thank you so much for coming on the show we appreciate it in the.