You're watching...
Former Federal Reserve Governor Wayne Angell on potential further actions by the Fed in an effort to boost the economy.
Also in this playlist...
Auto-advance: ON
Auto-advance
This transcript is automatically generated
-- -- mean Guam is more fed stimulus needed to boost our economy or is the Fed actually doing more harm than good.
Federal Reserve policy makers meeting today and tomorrow to discuss more monetary policy.
That's the last time -- gonna get together this year and some say get ready for the launch of QE four potentially.
As soon as tomorrow.
That -- made investors happy today the Dow rose for the fifth day in a row.
The SP 500 ended at its best level since Election Day well joining us now former Federal Reserve governor Wayne angle.
Governor thanks for being with us are we doing more harm than good by putting more money into this system there's eventually a -- diminishing returns that kicks in.
Well they don't have to be that worry it is that -- somewhat because.
That's -- is paid 25 basis points for banks to hold sterile reserves.
And they're regulatory thrust is you better not make loans -- red -- -- made we made criticized them.
And still the hassle over regulatory restraint on lending.
And paying -- first our excess reserves.
Have as laughter of -- where we're we're not a very effective.
Monetary policy at this time.
Right because it if from a bank what I want to lock into thirty year mortgage when the rates are so -- I'm not gonna make any money and so.
He got bad side of the coin on the other side as a person out there looking for -- home.
I'm not really sure I'm convinced rates are going up anytime soon some -- in my hands and wait this out so as a result we have nothing going on.
Well -- that that's -- of a problem bad but the good news is.
That commodity prices are not rising commodity price -- I've had to do weight rate of change are really very very stable.
It is almost more stable.
That -- I thought we could have got it that's what the Fed was trying to date.
So where -- we don't have a huge overhang.
Of liquidity driving commodity prices -- -- we've got the price of houses.
Out pricing and moving higher overtures are good at a good sign she.
-- would assume what should they do tomorrow -- should we hear from the Fed because Operation Twist probably gonna and there are no more short term securities basically left divide.
We're probably getting -- they're they're gonna keep buying mortgage backed securities.
Is all that's necessary or should we at some point to step back.
And let the little kid to try to take its first steps on its own.
What.
I'm hoping that the Fed that's our members is a friend who referred to the focus step beyond.
The economy.
And economic signs that monetary policy.
Is right.
As compared to those who want to promise for the Fed Funds rate will -- And 2013.
And do that and fourteen.
That's a real mistake.
Right and that's that's difficult are you worried about the value of our dollar -- But a part of the dollar's been holding.
Ground they -- out here just as commodity prices have been very stable.
-- also all the buying the dollars held steady here.
And it looks at just more -- deserve.
US exporters are doing a little better and.
US producers are driving out some of our airports.
-- till that first read news or economic growth.
Really hard to tell -- -- everything's overshadowed by this fiscal cliff.
Do you worry did inflation's gonna like common latest in the but one of these days and -- there is a lot of money out there.
Well I watch that very very careful late and I I don't think that's an immediate risk.
In regard to the fiscal -- I think the right thing to do.
Is to let that tax rates.
There you go up across the board just like they agreed to data.
So I I think we -- -- have metal and -- records.
As well as high income Americans.
Having.
I reduction of those.
Those tax rate cuts we -- So take more money out of my paycheck let -- fed put more money into the system I mean does that make any sense at the end of the bank.
Should I keep my money and get out there and spend it and then leave let the Fed -- -- Well that's if you got a good point and I I agree event.
And stability and monetary policy.
Is not very -- factory and so I'm not looking for.
Very march from the bad tomorrow.
Now you're not alone -- Wayne hang up former fed reserve governor thanks for taking the time.
You're welcome.
