Larry Meyer – Fed Alone Can’t Get the Job Done
Larry Meyer,former Fed governor and co-founder of Macroeconomic Advisors, appeared on CNBC’s Squawk Box Wednesday (August 1), just ahead of the results of the two-day FOMC meeting to be announced later today near 2:15 pm ET. Mr. Meyer came out of the gate with the idea that the Federal Reserve considers quantitative easing (QE) as a “high-cost” action and he doubts they are ready to “pull the trigger” on more QE.
That sets up a debate between Larry Meyer and guest host Steven Roach (Yale academic and Fed critic), on the surface about economic models to measure Fed policy results, but underneath is a deeper dispute (that goes to the credibility of the Fed).
To say that Mr. Meyer was on the defensive regarding his tenure at the Fed (when Alan Greenspan served as Chairman) … might be an understatement. In any case it made for “good TV.”
Meyer’s best comment might have been, “The Fed alone can’t get the job done.”
Judging by Mr. Meyer’s jittery composure in this segment and with the FOMC news just a few hours from now, I can’t help but get the feeling that something is about to surface to shake up the summer vacation season, either in Europe or here in the U.S. As they say in the diplomatic corps, “tensions are high and the situation is fluid.”
Colette Chapman for Got Gold Report
Source: CNBC Video