QE Has Helped, But Punch Bowl Must Be Removed

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And our next guest says no matter what side the QE debate you're on.

Punch bowl half removed eventually Jason pride good need director of investments joins us now Jason Fed's balance sheet.

Now more than tripled to three trillion dollars since -- down Bernanke strongly defending all that bond buying today any surprises this morning in his comments.

I don't think there any surprises they've been fairly clear in the communication -- looking for a target of six and a -- percent -- unemployment two and a half percent inflation.

To begin you know tapering back there bond buying.

-- are still a position of having to offset the deleveraging that's going on throughout the system we've been talking about this for a long time you know.

Consumer debt loads income are only down from a 130% of their disposable income down under percent.

There's still more room there there's still more room in the deleveraging of the governmental system the Fed has to act as an offset to that for a considerable period of time.

Now I think -- that kind of comes out as somewhere in the middle of 2015.

Is -- the likely target for when they will actually start tapering -- their purchases and and and start hiking short term rates.

On sooner if things kind of get a little bit more confident -- you know there's uncertain factors here the system could give more confidence start seeing so a little bit more growth.

Which is why they have a range of expected rise but somewhere in the you know late.

2014 early 2015 middle 2015 somewhere in that ballpark is the range of expectations.

But Jason while we thought we had the security.

Of the Fed to stand pat on that lose money -- 2015.

You know stock traders lately have been worried that the Fed will move earlier and some fed members keep -- -- we -- move early -- -- move early is the Fed undercutting any upside impact.

Of its commitment to stay low because the -- warning until we decide not to scale up.

You know I think this is a balancing act for him this is a communications.

Issue for them.

They need to both convey that word that the dared to do what's necessary to do thirty keep the economy moving in a positive direction.

While also kind of tapering off the concerns of inflation bubbling up in getting out of control -- so what you'll see is you'll see them balance.

That sort of communication -- do it -- different players within the group you know.

They'll allow even different fed speakers the ones -- tend to be more hawkish to speak up a little bit louder when they need to make sure that message is still there -- a little doubt they'll try to balance it.

It's a communications management all right I'd like for a more -- Harmonic Greek chorus there but thanks very much for -- Jason pride.

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QE Has Helped, But Punch Bowl Must Be Removed

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