Though Janet Yellen is the right leader at the Fed, managing the central bank's pullback from bond buying will be a difficult job, says former Fed Governor Kevin Warsh.
You recently said your former colleague that Janet Yellen that you marsh -- her strong intellect meticulous preparation ample experience to -- back successfully. But you also called quantitative easing. Which is obviously supported quite heavily untested and an incomplete. Experiment. I don't know how we reconcile those statements and how would you what would you expect from this change. We agree. Reconcile those statements delicately. But. And -- sites so it's it must work for five year span. Time she spent about two weeks in each and every year there was a lot of time. She has got all the background role. She has seen from all angles and most important she's seen the and Washington at different points in the business. Times weren't right for policy to be loose and common it is time words right for policy to be restricted and pulling back pulling people out. So she's got all the background do the job she -- taking over what I think it is critical moment for the US economy the global economy. And every hope and optimism -- team that will be able to. In some sense allowed. If not drag. Out on -- the next level. On the question of the substance policy. -- my judgment on mrs. Hasn't changed for awhile which is if you go to the darkest days of the financial crisis. You know even a guy like -- we've got to do if you can skew in that moment was tried again. Asset prices that we've -- it did masks. At least look at each other. So that original motivation of QB. Was quite different than what it's being -- to be used for today. So while a big supporter of QE in the darkest days I think it's quickly outlived its usefulness and my sense of mine former colleagues -- is. They've come to that view was well. They are now trying to pull back on. The purchases of treasuries and mortgage backed securities. And substitute something which is quite popular -- forward titans. The Federal Reserve doesn't have to buy stuff does that tell. We're gonna try to convince market participants. That we will keep interest rates very well here's our intellectual structure for doing it. And in the open question is whether markets think that forward guidance we used to call open now operations. Is equivalent. To actual 85 billion -- purchases quite tricky test for a new chairman but she's gotten back to -- often --