President Trump, Federal Bank, Tokyo discussed on Bloomberg Surveillance

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President and see if the federal bank of saint louis our fruit to this earlier on the show he sat down with our colleagues in tokyo and spoke with limerick kathleen hayes and betty lu about the fed's rate path and the plan to shrink its four point five trillion dollar abound she let's take listen i think a good thing about unwinding the balance sheet is that it will create policy space for the committee in the future if we need it on the rate at south i think that we're not very far from an appropriate rate for the us economy that will keep inflation not too far from target and the labour market performing while so what i disagree with the idea that we have to go two hundred basis points higher to get to some sort of neutral rate i don't think that that say environment that were in i think we can stay about where we are possibly just a little bit higher than where we are today there's going to be a bank source the man removed from the situation because the fed has been buying so many place the ones that are rolling i i just wonder what everyone is saying that this just like no big deal to the bond market will be some impact but it'll be relatively small and to the extent that would be months where there would be a lot of roelof will put some caps on that to keep that under control so they'll be a sort of maximum the markets would face in any particular month here we've got a job market are frazier numbers know seemed to be calling some kind of curious why are they they urb out liar here among the fed speakers that we've seen i mean what are you see that they don't we've been arguing that we're making progress toward our two percent inflation goal but these have been going in the opposite direction in the early months of twenty seventeen i also think in the first quarter we got a relatively weak gdp report it was revised up a little bit but even with that revision i think the first half of twenty seventeen i'll be relatively ordinary gdp growth of around two percent so the the idea that the economy is growing a lot faster than tran and this is going to push up inflation i don't think as matching.

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