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Changing the Face of the Fed

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  • Description

    TCW managing director Bret Barker on how the Fed could change if Romney or Obama wins the election.

  • Duration 3:05
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How much could the Federal Reserve and it's easy money ways change if there's a change and the White House come November the sixth Bret barker.

Managing director -- interest rates strategist for TCW.

Some.

A little may be or not at all -- Brad.

-- good morning.

We think actually that long term trend is probably not that much if Obama wins the election it's probably get it business as usual with today -- on public taking the reins.

-- if Romney wins -- -- -- there who might take over.

But even -- side John Taylor who should be coming -- they're very anxious to hear his comments that he takes over some -- is very obvious but we think the longer term.

The consensus building that Bernanke is greater than the Fed makes it very difficult for one person -- against change the view.

What could Ben Bernanke's term doesn't end until 24 chain and the Federal Reserve -- promise to keep interest rates essentially where they are at at zero.

Until mid 2015.

Because that raises an issue -- and of itself does not regardless of his in the White House.

That does is always hard to predict -- is beyond their term men and even then just their projections how -- -- -- project the economy three years out.

We do feel that -- the Fed's view on the economy and then the miss -- -- -- mandates that regardless who's in charge of the next few years the rates remain very low for a considerable period.

Up considerable period but -- -- -- for long enough that you would actually put money into treasuries at this point.

You and I don't would you simplify our okay -- -- -- interest at this at these levels says that again -- go ahead.

I'll just say we find very little value of treasuries at these levels there's just not much to offer even -- they're the ones being punished the most of these rate would you find value point of view treasuries -- close.

Are we to -- all time narrow spreads in those categories.

It's getting -- market in the C -- residents sector market.

Are you still -- did admit there's no sign of waning demand whatsoever brat right among investors.

And with the aging baby boomer population that last for decades could it not as people need to buy the deficit image -- -- excuse me.

This is highlights that's the thing I think that chasing how that this this let's assets under -- hungry -- -- well.

I did most the Fed is -- facing or focus keep rates lower people --

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