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-- but the Federal Reserve announcing it's gonna keep the 600 billion dollar bond buying program in place our next guests here today says he doesn't think they're gonna follow through at that.
And -- even asked whether or not we need -- Central Bank in this country to begin with.
-- -- Driscoll -- former vice president of Federal Reserve Bank of Dallas and joins us now from Reno Nevada the 600 billion stays in place -- according to what we heard yesterday.
But you don't think they'll go all the way why not.
I did go all the way because there's a lot of opposition and you have to new president's coming on rotating on -- Fisher of Dallas Plosser of Philadelphia both of whom have real reservations about the program.
How does that change things then because a lot of people are assuming the Fed will just keep buying bonds tried at least.
To keep rates low even though the market over the last week -- -- has not been exactly cooperating with that if they don't go through with the whole 600 billion.
Or even increase it beyond that how does that change the dynamic next year.
I think it would be for the better because I think the markets -- second guessing this this plan.
And I think the economy is beginning to strengthen on its own.
And we don't need the additional monetary stimulus at this point what do you make of the fact that the market based rates and we're watching.
-- a ten -- -- for example on the have started to go off and people that are.
Thinking about buying a home -- seeing mortgage rates go up -- saying this is the opposite the Federal Reserve -- we have to keep these rates low with this bond buying program.
Is it just.
What's going on they -- this there's no lack of trust in terms of the spending in Washington or is it something else.
-- I think the Fed is really lost control over -- rates be on the short term.
You've you do have the economy strengthening a bit and I think -- Fred the first fears.
And his fears at this point of maybe some inflation impact from.
From the program if it goes forward -- we haven't seen any inflation in the government numbers mean look at the CPI today basically nothing but tenth of 1% but you say there's more -- has -- -- there.
If it's not showing up in the CPI but yesterday's Producer Price -- certainly indicated that food -- that if that passes through then you've got it in the consumer price and that caucus is just a matter of time that in your view until we see actual inflation in the government statistics now you're saying about the Fed.
Losing control -- reference one we -- introducing you.
A Wall Street Journal piece that you wrote fairly recently in which if you'd have to ask the question about whether or not the country needs a Central Bank what's your own personal view.
On that are you among the people -- think we can do without it.
Well I it is no immediate way to do without it but we went until 1913 in our history without a Central Bank Canada -- until 1935.
If that -- that it as your previous guest said the first thing the Central Bank should do is no harm if it does no harm it plays a constructive role.
Because it does have a role to play in in in the kind of credit.
Cruncher emergency credit lending that we had no way and Intel line.
What -- -- -- with so I'm just tried a kind of reconcile -- you think it's handled this particular crisis it's funny we're gonna talk later about the fact that the face -- CEO is the time.
Magazine person of the year and Ben Bernanke has held that title during the crisis mean some people say it was a brand things to be a lot worse.
Well he was very late to recognize it was a crisis and he was -- use really giving happy talk speech is going into the middle of -- And he didn't start acting aggressively until fall of -- -- the Lehman episodes.
And -- I I think that probably there was too much of QE1.
But that's debatable but what we don't need is and is anymore just because something worked wants doesn't mean it's the thing to do the next year.
Arch area Driscoll at this it does not think they're gonna go through that.
600 billion dollars in this particular round of quantitative easing at its not Gerri thanks good to see -- thanks for coming on good beyond thank you.
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