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LIGHTNING ROUND: Fed should do nothing, economist says

Monday, March 12, 2012 - 02:25

Mar. 12 - Decision Economics' senior economist Cary Leahey says the Federal Reserve may add economic stimulus down the road, but says the U.S. economy has recovered enough that none is needed.

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I enjoy about this economic managing director Cary Leahy for a lightning round conversation on the Fed carried as the Fed changes position on interest rates this week no not this week how thought up this statement. They will be more upbeat about the economy when they review the economy and what they call a so called general assessment does that mean QE3 thought that there -- not quite off the table they're thinking about it but not really talking about it you've gotten enough Cold War room -- that that seems highly unlikely happens history next meeting does anything happen in place of it. There could be an intermediate moves. Such as QE2 three quarters which would not increase the balance sheet but they sell treasury buying mortgages to help housing but I still don't think that's like -- this week do you think they should do anything. No I think the state of play the economy is okay and I think they probably will create more problems than they solved if they actually expand the balance sheet and also. Make a number pop -- of a presidential contenders quite unhappy wife take the chance. Oxford says dogs anyone change their mind. I know what's interesting that some of the so called policy maverick. Have changed their opinion of I think in the QE3 could be a disaster but I don't think anyone's chains of positioning positions of -- why the -- -- do anything based on jobs report last Friday economy looks better well. Because -- the same thing this time last year in the economy crumbled the big mistake they're trying not to do is to not take out enough insurance that's what happened 1930s and they don't wanna repeat that mistake twice -- the price of insurance policy. The -- the insurance policy be the so called unintended consequences could be more inflation or some bubbles and very speculative markets one of the reasons Bible gold prices have gone up. And the prices of commodities have gone up this is the Fed is said. Go out there and virus yes that's which is saying. A risk on trade. If the Fed. -- it's 2014. Position on interest rates they're gonna try but it may happen an early 2014 nearly 2013 the irony is is probably good for the economy if the feds. Validated they recovered by saying we need to take -- stimulus ironically if fed rate hike would actually be a good sign for the economy no evidence that we'll stay ahead of inflation. Probably not but they have plenty of time to Rubin and takes a long time for inflation to pick up dramatically so even if inflation moves up a half percentage point. They'll roping down before it takes off past 3%. Scalable and -- and the best house of that. I probably a seven Ernie Cary Leahy this is economics that Q thank you. I'm Rhonda schaffler that this writers.

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LIGHTNING ROUND: Fed should do nothing, economist says

Monday, March 12, 2012 - 02:25