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Fed support now likely at next meeting: Fmr. Fed official

Friday, August 31, 2012 - 02:19

Aug 31 - Ben Bernanke and the Fed could inject more cash into the recovery at the September meeting depending on the jobs report according to Alan Blinder, former Vice-Chair of the Federal Reserve Board.

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We're here in Jackson Hole Wyoming after Federal Reserve Chairman Ben Bernanke gave his much anticipated speech. -- some reaction we're joined by professor Alan Blinder professor good to see you once again nice to be here what was your main take away after listening to mr. Bernanke. I think the -- takers probably everyone's main take away that there was not much news in this it was a dog that didn't -- speech I think the speculation on some people's part -- whether he would back away. Given a slightly better economic news from what had been a pretty strong. Quasi commitment. To do more. Probably that means quantitative easing QE3. And he didn't back away from one inch blizzard that speech to -- us. If there was anything it was the discussion and it was a fairly lengthy discussion. Of the cost. Of quantitative easing and a forward guidance. And a statement in there that. Those cost created a higher bar for monetary easing -- would be the case in normal times. You could interpret that and maybe one should interpret that as a kind of bow to the hawks thing this is not -- easy horse cost with some some people would like to say but. As he ran over those cause he was downplaying the severe of these potential cost but we don't -- -- series basically. Where does this leave us in terms of time for QE3. I think the I think it's actually the other way then that's what they need not the overture. So I think the likely timing is that the next FOMC meeting which is only two weeks. Away you start getting awfully close to the election if you don't do it than. And the biggest thing that will know. Then then they'll know that and that they don't know now is the next month's employment report. If we get a blockbuster employment report really I mean a lot of jobs more than the market is expecting. That could be a stop sign for the Fed to hold on maybe we don't need. To do this. That's not what I expect that's not what most people expect. Welcome.

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Fed support now likely at next meeting: Fmr. Fed official

Friday, August 31, 2012 - 02:19