Will the Fed Keep Rates Low?

" Well we're just after four hours away from the Fed reserve's decision on interest rates and let's bring in former Federal Reserve economist David does it. BC DNJ advisers he's joining us from Denver. David great to see you as always. Do you expect the Fed to change the languages statement about. The future of interest rates at all talking about the exceptionally low levels for an extended period of time any of that get tweaked here."

" It might get tweaked it's a little bit early for that but. There's certainly a possibility that'll happen they're certainly not going to change us interest rates which will stay yet. 02. Point 25%. Rock bottom levels but. They may start to change the language. As you say they've been talking about -- or -- low for an extended period because the economy so weak. Well they're going to say today the economy's doing better. It might be logical to change that wording a little bit you know the Fed is so nuanced on this maybe they'll talk about for some time. Longer or something a little bit. Less strong than that for extended period."

" David wanted to show our viewers the record periods where the Fed has done nothing in other words the longest length of time -- absolutely no change rates. Was to be had do you think this will be a new record period you have to be longer than a year and a half. The Fed does I not."

" I think we're back in that category I'm guessing they won't raise rates. Probably until the middle of next years so that gets -- and that eighteen month. Period near -- record but I think they'll talk a lot. Teddy Roosevelt said something like -- speak softly softly and carry big stick the Fed's going to do the opposite they're going to. Speak loudly and not do too much in terms. Tightening to be sure this economy is under way you know we may have stock price bubbles we may have commodity bubbles we've -- him property bubbles. Question is can this recovery get going and can begin to feed on itself and the Fed is very uncertain about that right now."

" We already in the process David of -- losing an incredible amount of juice or stimulus from the Fed the 300 billion treasury purchase programs of our. This mortgage purchase program is coming to an ended to be it toward the beginning of next year in the first quarter. Will that alone be a head wed may be for the economic recovery."

" It's a brilliant question why do you ask better questions than Brian -- and she's smarter than me. OK that's -- that that's a perfect question the that fit -- already started its exit policy just for the reasons you saved a eased out of their buying of treasuries they've already told us they're going to. Eased out of their buying of agency debt and mortgage backed securities by march I take them at their word they're certainly not going to change that so. What we're getting here is a little bit of an exit policy gradually. But again that big time rate increase doesn't come and go as I say perhaps the middle of next year."

" David you're welcome back. Everywhere I didn't."

" I -- I. Then we love you drop it. There David beg you for being here David -- DNJ adviser."