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In terms of other markets and the reaction the dollar is gaining here against most major currencies and -- -- recovering from a two month low against the yen.
As again the market seeking some kind of clarity -- -- off from the -- let's.
Bring this discussion to Michael Wolf we'll be in -- Mellon global markets managing director Michael welcome TO yes -- -- you -- this is kind of a silly way to start an interview but.
Might hairdresser was asking me about the Fed okay.
And what it means for her and -- interest rates are gonna still say low because she's actually seen a lot of change -- changes -- her interest rates for consumer rates yes -- just in the last months of this meeting is taking on more importance than some of the previous meetings is that a fair comment I think it's a fair comment that.
Maybe as you -- to it's been blown out of context the difference between 85 billion and let's -- sixty billion NASA purchases really in the big scheme is is not a big deal.
So it's interesting to me because so much has been made of the may 22 sort of miss communication in dual message from Bernanke from.
The congressional testimony to the minutes.
So and we've seen so many gyrations in market interest rates as I mentioned and also this whole dollar again -- really the yen soared up.
What -- make of that and do you think that.
It's a reflection of poor management by Bernanke in effect.
Well certainly and it was a misstep by Bernanke's senate command mixed message.
With this is testimony several weeks ago however.
I think the reason why the market and others outside of the market have put so much focus on this decision is because it marks a turning point in monetary policy.
And we will be entering.
Quickly a bear market for bonds when that happens.
-- one of the things as speculation has risen over the last month month and a half about.
Will or will not the Fed taper we've seen the carry trade come off in in a vicious way.
The carry trade of course had been short yen.
And long equities along US dollar that has reversed and we've seen some remarkable move since.
The dollar is stronger today but the yen for the last two months has been showing some incredible gains -- so.
You know you -- saying to me earlier that that's not a reflection of people being more optimistic about Japanese growth rather just this confusion so.
Are you confident that we'll get a clear message from Bernanke tomorrow I'm not.
Confident I think that the -- and greatest likelihood is that Bernanke maintains the current posture of the Fed and the sense that.
We've had weak data.
There's still a lot of uncertainty about the outlook for the US economy so it's business as usual I think he senses he's going to be stepping down in January.
Leave it to the next Fed Chairman to engineer that monetary -- that's going to be a messy proposition.
I want to go there but first I want your take on.
Again the messaging from -- that when Bernanke came in.
It was going to be more transparent -- right because his predecessor Alan Greenspan in his famous it you know -- irrational exuberance and nobody could really.
Understand what Greenspan is getting at and so Bernanke was gonna have a clear and transparent -- with these press conferences.
But also from journalists he had the FT report talking -- will -- happen won't it.
Before that the Wall Street Journal so it's almost like disorganization.
In chaos and -- think the Fed could be doing a better job than.
They could be doing a better job however I think that history will paint Bernanke.
In a positive light particularly if he hangs on till January without tapering.
I think he did make an effective argument for having been the best chairman in history and and perhaps the chairman that saved the economy from the second go to Great Depression.
So why -- the president like and he just said the other day he served much longer than he even expected Bernanke two million.
I think that there are.
Other candidates out there of -- are very.
To Obama and I think that there are other candidates out there who have a strong personality.
Not necessarily one that is.
Steeped in consensus building life so we're not yes gallon not -- young your favorite.
I tell you what what one of the did the least step popular.
Candidates but one which could be a very effective chairman.
To engineer a monetary turn.
-- actually be Larry Sommers interesting he has the intellectual.
Credentials from he has the experience.
-- -- he would be a good choice.
I think he did this second a close runner up will be someone actually that Obama is gonna look very very favorably upon and has a lot of familiarity with and that is.
A former fed vice chairman -- Roger Ferguson.
Former Harvard grad Harvard law grad he was in economic advisor to Obama -- -- house on reelection campaign.
Well Michael Woolfolk lots to keep our eye on -- -- -- set us up beautifully.
Thanks so much with it then come back soon.
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