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Face and she was appointed to her position.
-- back in October 2011.
In an exclusive interview Peter Barnes is standing by -- Athens Georgia in Kansas City -- Well -- -- McConnell that's right president George welcome to Fox Business.
Let's get right to monetary policy and quantitative easing we've been hearing and reading a lot.
From fed officials and fed bank presidents about the future course of quantitative easing.
Whether or not to start to dial it down.
Some of this information has been confusing to consumers investors and to -- reporters.
Can you help but clarify this for us what is the future of QB.
Well I'll offer you my views Peter which have then that's.
Has served a role during the course of the crisis but more recently the open ended program.
-- has raised questions for me about its cost relative to its benefits.
And I think as the economy has continued to recover.
Even though that's been slow we have seen positive trends both in the labor market and housing and other things the discussion about how much longer.
-- -- that will be outlook for the labor market be sufficient to allow the committee to begin to make adjustments.
We've come to that point and the minutes of the most recent meeting have suggested that the chairman -- this press conference have suggested that.
And so these signals to the market after a long period of engaging in this kind of policy.
A bit confusing may create communications challenges for us but I think beginning that dialogue.
Is important for the markets began to make that adjustment.
How do you think this should play out that and I.
Are you satisfied with the pace of job growth for example and do you feel then.
That it is time to start tapering.
And then you know next meeting or two -- have a meeting in July you have a meeting in September would you.
I think it is time to begin to adjust those purchases.
The labor market has shown now for the last six months they pretty steady gains.
Close to 200000 per month.
That is a good indicator that there has been sustained improvement here and that's I think it would be appropriate given the size of our balance sheet.
Given the level of accommodation that we began to make adjustments that reflect that improvement as we go forward.
When would you like to see those adjustments start.
Adjustment would you like to see right now it's 85 billion dollars a month and mortgage backed securities and treasuries do you would you like to see that cut too.
You know 75 or.
Would you would you like as as the minutes suggested to see it.
And it completely by the end of the year.
Well I think that's a discussion the committee's gonna have to have about what is the right pace and what is the level of adjustments I'm open to engaging that with my colleagues about the right pace but I think.
Is appropriate to begin now because we have a long way to go for gonna do this and a gradual in a systematic way.
To begin to return the balance sheet to -- to normalize monetary policy.
There's a path that the chairman laid out at the press conference when he was deputized the complexity.
Members to try to provide some explanation some guidance.
Was who are you comfortable -- that path -- that that if job creation continues.
Maybe this pace of the economy continues to grow.
Decently and at a healthy pace.
You start the tapering later this year.
And wind it down sometime next year but by the time the unemployment rate hit 7% to would you like to see it done faster and sooner.
Well I've I've been a proponent of doing it faster and sooner but I think the important thing is to start the process.
And I think if you're gonna move in a gradual way you may find yourself in 22014.
Beginning to adjust those paces.
And so whether that corresponds to a 7% unemployment rate that's been thrown out as a potential target the thing you have to remember though is.
As people come back into the labor force you may see that number move around too.
So my preference has been just to take a more systematic approach to beginning to adjust those purchases down here.
And yet the the minutes did say that and it was a little bit of confusion in the minutes as well because it elaborated on this discussion internally that you're having with your.
Colleagues but it also said.
And the explanation of forecast that -- -- just released.
That about half.
Favored ending quantitative easing by the end of this year how do you.
How do we -- how -- we investors and reporters and and consumers process.
That information what does that mean.
Well I think there're couple things so when the individual participants.
On the up on C are preparing those projections you're doing that based on your own views of appropriate policy.
So those then are compiled and you get to see a central tendency get to see how those fallout.
I think the important signal is the one that the committee sends and it's official stance of policy and of course that remained -- their last meeting which is to continue to buy.
-- the pace of 85 billion a month.
The majority of that committee continues to support the current stance of policy.
And waiting on the data as we've heard over and over on the things are well.
Wait just another minute if you will.
President George we are now -- -- -- -- -- going to continue this discussion.
With president George -- a lot more to talk about we're gonna talk about her outlook on the economy about.
The chairman's recent -- -- Q we bank regulation her background is in bank regulation.
We're gonna do that on our web site foxbusiness.com.
In about twenty to thirty seconds so.
Give folks time -- click on over and president George thanks for joining us to the live portion of of our.
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