Monday, August 31, 2009

Read It Here Last Week, Hear It From the New York Fed This Week

Here is a link to a video interview Steve Leisman of CNBC had with New York Fed President Dudley. This interview aired this morning.

Mr. Dudley addresses several of the issues presented and analyzed on this blog last week, such as the Fed's balance sheet, MBS purchases, and debt "monetization".

Overall a good interview I think. Comments welcome.

5 comments:

Mike Norman said...

Nice post, Matt! Liesman's got a good teacher: Warren!

Mike Norman said...

Just watched it. When Dudley was asked whether or not the Fed was "monetizing the debt" he said, "I don't think so," but went on to add that the Fed actions were not giving the Treasury more spending power. This was sort of an answer. Dudley did seem pretty confident that the Fed would complete its planned purchases of MBS, although there are several FOMC members who have expressed reservations recently.

jimbo said...

It's better than nothing, but one can still hope that someone who works at the fed would understand and say in public that there is no such thing as "monetizing the debt" in a fiat currency. (Or maybe another way of putting it is that in a fiat currency, the debt is always "monetized"...)

Matt Franko said...

Mike,
If Fox wants to get interviews like this with real policymakers, youre going to have to do it.

Do you think Dudley would agree to an interview with David Asman asking in a loud voice: "So, how are we going to avoid hyperinflation when you are printing so much money?" or "How are we going to be able to afford all of this?" or "What are you hiding from the audit of the Fed?" or some such thing. They will never agree to the interview. They want to know they are dealing with informed, rational interviewers.

You are the only person in the entire foxnews who could do/get this type of interview. If Neil wants to do this type of reporting in addition to the joe six pack type (ie get some broader appeal), he is going to have to get you involved because your views will precede you and I think will help you land some better guests there in NY.

My opinion.

Mike Norman said...

Fox won't let me do it. It's amazing that I am even still there.