Aug 31 - The economy has to get much worse before Ben Bernanke and the Fed decide to act, according to Edward Lazear, former White House economic adviser.
He showed his hand in Jackson Hole let's get the opinion of economists atmosphere -- -- by the way yet. It it. Do you think now -- -- is more or less likely what we learn from Ben Bernanke I think this is right on the expectation then said that. He believes the Fed still has tools that are effective he went through the history of the policies that they've used in the past. And documented that he felt that the Fed had been effective showed evidence for that. And said that they were going to continue to think about those tools into the future. The one thing he did say and I think this is important is he emphasized that because these tools are. More uncertainty didn't quite say less effective but he almost at less effective -- the tools that they've already used the bars higher and that means that. If the economy has to be significantly worse in order to be willing to use those tools and bear the costs associated with them. Little bit about timing if it's off the table for the September -- don't get too close to the election. Well I I I don't know why I don't know whether they would conceded the election is being an important factor I doubt that they would this fed has been. Pretty apolitical I think in. And with good reason I think it's been a good result. So I I don't think that they will field its particularly important and in the -- is. The effects of the policies. Will not be felt till well after the elections though wouldn't really matter whether they did this in October. The announcement effect might have some impact that I would I would think. Really insignificant how important is next Friday's jobs report points. Well the jobs report I think it is is significant but not all of that significant the jobs picture is not going to change the labor market is in very bad shape has been in very bad shape for a long period of time. And there's nothing that's going to happen in the next month or even the next three months that's going to change that and of course -- it makes the question why actually very. Well I think the argument is this that it if there's nothing specific about the labor market the labor market is really dependent on general economic growth. So if the Fed believes that they can affect general economic growth by having QE3. Then it will have implications for the labor market but again. That's not something that's going to have an immediate layout we're talking about something that will. Lay out over the next year or possibly into some tough issues Edwards -- thank you so much thinking. I've got this there is this right.