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Well Fed Chairman Ben Bernanke F -- keeping his dovish tone today saying that tapering isn't.
On a preset course that the central -- responded data when it comes to changing the pace of the bond buying but.
Does the -- actually needed a planet -- specific plan our next guest is the Fed insider.
-- now Bob lies and buys Cumberland advisors -- monetary economist to know what's good thing about.
The intricacies of the Fed is the -- that we just heard from Peter Barnes had an exclusive sit down with Esther George yesterday Kansas City fed president she said.
That they needed to start tapering so there's dissent inside of the Fed were saying that from the minutes Bob.
Do they need to kind of reevaluate sooner rather than later there there attitude about the bond buying program.
Don't think they've reevaluated.
The program at all they tried to lay out the fact that.
-- Michael this if testimony.
If the forecasts are realized if he kind of -- precedes -- the -- pace that they.
If the unemployment rate.
Falls -- they expect if the and inflation rate.
Moves up towards their target.
Then it will be time to consider these are the points that they have been trying to get across that everything is conditional upon incoming data.
-- if there's a big thing they also talked about employment data six point 5% is the threshold that is not.
We will change.
Policy at six point 5% as well that's that the -- hole I mean why do you think that we're getting so much.
It's not -- damage it's frankly just kind of ill.
If the if the if if you well letting voyage from the apple and say I mean don't they didn't think the market and the economy deserves a little more clarity to what we're getting right now.
While the market wants clarity but in fact they don't know.
And so everything they do is conditioned on what they see they have their models of layout has.
But they're not willing to bet on the models with the kind of commitment.
That the market would like to see.
-- The real thing -- -- imagine what you think you know what the what about that we were really haven't discussed too much as the inflation levels and that's the one thing where you kind of heard.
It is prepared testimony this morning he sounded a little nervous about the fact that that you got what one point 8% and and inflation their target is 2%.
We're below that -- the one area where mr.
A little more concerned than in other areas.
Well actually the inflation rate that they're looking at -- personal consumption expenditure rate and that's much lower than one point eight that came through on the CPI.
Bernanke the chairman is not the only one who's worried about it -- -- -- to Saint Louis is very much worried about the fact.
That would low inflation there's a wrist.
From his perspective that we might slip into deflation and so there's a lot of concern about the risks that the economy faces.
And that's the inflation number is one of the keys that they're looking at as an indication of how strong aggregate demand -- -- loans and again I think the Fed chairman's -- watching Fox Business on the side here because he just made a comment we know how to exit without inflation we know how to exit without inflation means that he's -- Asked this in DC -- -- I mean this is certainly a bigger issue that needs to be re addressed cracked.
Well I think that's exactly right and what else would you expect him to say woodie -- would expect them to say we don't know how to do it.
That's the stuff the way of Fed Chairman would he has to say that.
Whether they can do it or not.
We'll find out.
Bob bison but of course the Fed insider and someone that's been monitoring this testimony with the rest of us update you very much appreciate seeing on the -- -- -- Thank you.
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