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Fox business's Peter Barnes joins us live now with his -- Atlanta fed president Dennis Lockhart good morning Peter.
-- hi -- that's right then that lets get right to president Lockhart thanks for joining us now Fox Business once again certainly feel as you know the big question here for her -- members and central bankers as the future of the Fed's quantitative easing a five billion dollars a month and bond purchases.
Is the economy strong enough in your view to -- to start tapering those purchases.
Well as you know -- many of us operators we start with an outlook and is the outlook that I have in mind.
And that is that the economy will improve a little bit in the second half will continue on this sort of moderate growth vastly.
Inflation numbers will begin to edge -- our target of 2% and move up gradually.
Unemployment will come down the job -- picture will continue to.
Two produce new net jobs of a hundred and say it's 75.
If that outlook colds and I think.
We can't consider.
Beginning that we need the economy from quantitative these.
As soon as the next meeting at September you know I'm not hung up on any particular meeting.
I wouldn't rule out September as as the meeting but could be later.
One thing to keep in mind is the between now and September 18 we will not have a lot of new information.
It depends I think for individual policy -- how you're actually building your case.
It -- situation -- my -- of looking out from my perspective.
I'm looking at the incoming data as.
Either undermining or.
My view of the outlook.
And -- that therefore it's not as quite as high a bar as having to build a case from scratch for -- And you -- in a recent speech.
You talked about it could be September could be October could be the December meeting.
But regardless of the timing.
It is it time to finish the quantitative -- mean this is it is it going to be over inevitably or -- critics continue on.
I don't want to anticipate to decisions.
Or even -- situations in which the policy we'll have to be determined.
I I think the first step in my mind it's a cautious first step.
To be followed incrementally with other steps if the incoming data support that point of view but -- I'm not ready to -- stated that there is a particular road map or a a start to finish kind of plan is that we commit to now it's not the way I'm thinking -- I'm really thinking that is driven by data.
And as a data come -- we'll determine what the state of the economy is.
Cautious first step could be what's you know on ten million dollars less funny billion.
In that range maybe you know I'm gonna wait and hear what and our our staff advises Telesis is sort of been the most logical.
First -- if we make that decision but there are some things going on out there that could.
Hurt the economy for example we have seen -- back up and interest rates particularly mortgage rates that could hurt the housing market are you concerned about that watch constantly -- -- went all the fiscal battles in Washington.
Well you you mentioned -- it and it certainly have to be monitored very closely I I.
Think it's a little early to tell whether the back up and raised -- the higher long term rates are really going to.
Somehow bite in some -- -- and and slow the economy there's no indication of that yet.
I think it did at the moment at least my view is that the economy can absorb that it has enough internal strength if you will.
But it remains to be seen you mentioned fiscal battles which will -- September.
I mentioned in a recent speech my concern.
That there could be a blow to consumer confidence from.
Too much of -- spectacle on on Capitol Hill around fiscal considerations.
Two years ago.
Consumer confidence dropped pretty dramatically.
Under similar circumstances.
You -- -- remember there was -- had a downgrade debt by S&P so.
We're not we have some things coming up that are.
Sir that -- and that could affect whether or not you -- and the pace -- -- and there.
It certainly could have effective decisions.
After September because the fiscal deliberations will take places him in last thirty seconds.
Do you think this last round of quantitative easing has actually been effective because there's a great debate about that and that maybe it hasn't been and so.
Wrap it up anyway.
It's one of those questions that -- it's hard did and it kind of clinical way to isolate the policy and determine its effectiveness.
-- all these those things that influence the economy.
On balance I think it has been affected particularly in the early months and if you want to ask is it influential.
The back up -- rates tells you how influential is as soon as the chairman came out with a suggestion.
We saw a lot of volatility in -- bond market so clearly it's -- quantitative easing has been influential where we're.
We're -- here with our on -- portion of our interview but we're gonna continue this right now and continue to talk about quantitative easing in leadership changes at the Fed and lots of other.
Issues this that that outlook for the economy.
For our web site foxbusiness.com.
When where wrapped with that interview look for that to be posted on the website later today I --
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